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The following is a deck that I have prepared with some of the main points from the various sections of the book.

 

The above deck  in pdf format:

 

image Takeaway :

This book was published in 2003. In the last 10 years, US markets have changed dramatically and so have other markets all over the world. The dominant form of trading is via Electronic Order Book.  Open outcry markets have been almost completely taken over by Screen based trading. Specialists roles have become less prominent with HFT players acting as middlemen.

Given all these rapid developments, this book still does an awesome job of piecing together various elements of a market microstructure. The highlight of this book is that it introduces various stylized traders and analyzes market microstructure mechanisms via the eyes of these traders. In this way, the text provides a superb insight in to the various interactions of market participants, that ultimately define a “market” and its “microstructure”.

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