investment & speculation
managed investment & speculation
arbitrage & liquidity provision
via broker
via broker or direct market access
direct market access
regular people
on behalf of regular people
own account (prop)
Who?
Why?
How?
Retail
Institutional
Pro-Traders
broker decides: usually a simple rule & automated
investment advisors
requests to take position
liability desk; needs to trade out of position
agency trading; choice of algo based on performance metrics
set of instructions
market making
sophisticated, quasi-autonomous system
Exchanges
Wholesellers
Dark pools
Broker systems
Exchange
Internalizer
Wholeseller
Darkpool
Investor
Trading Venue
Brokerage
Settlement
By Andreas Park
Professor of Finance at UofT