Market Microstructure

Our professionals and academic and industry experts are fluent in the dynamics of the financial markets and the interrelationships at play, a topic known as market microstructure. We have supported experts in market microstructure on many complex cases and have worked for a number of major financial services firms and institutions, including the SEC. Through this extensive case work, we have developed an in-depth understanding of financial markets, trading mechanisms, and market frictions.

Areas of Expert Analysis

We have analyzed allegations that particular trading behavior resulted in manipulated or artificial prices. For example, we have addressed:

  • Allegations of “bid stacking,” in which traders allegedly entered a series of increasing bids that, when they were hit, caused a price spike
  • Allegations of “marking the close,” in which traders allegedly entered either very high bids or low offers at the end of a day’s trading, and on many such orders, to affect the closing price
  • Allegations that defendants engaged in trades that “did not make economic sense,” such as hitting an offer higher than the inside offer or hitting a bid below the inside bid
  • Allegations related to issues of market liquidity in the trading of large blocks and opaqueness of the bond market
Areas of Expert Analysis