Securities Trading: Principles and Procedures

Joel Hasbrouck

January 21, 2022

Securities Trading: Principles and Procedures (STPP) is a draft manuscript that grew out of my teaching notes for my undergraduate microstructure course. The audience is upper level finance and information technology students who are aiming at positions in areas related to the securities markets (traditional sales-and-trading, but also fintech and litigation support).

The course covers our basic trading mechanisms (limit order books, auctions, dealer markets). It has a high institutional/regulatory content (mostly, but not exclusively, US).

The current stable draft is STPPms12c.pdf. (December 14, 2021). Relative to the previous draft (, November 18, 2020), the major changes are:

These notes are copyrighted, and I reserve all rights to use and reproduction. If you'd like to distribute them in class, please drop me an email. If you'd simply like to have them available online, you can link to this page or use the links below.

Current draft: STPPms12c.pdf (Updated December 14, 2021)

Sample: Chapter 2. The Elements of a Securities Market: US Equities

Previous draft: STPPms12b.pdf (November 18, 2020)

Other materials

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