Research Expertise and Interest

management of information systems, role of information technology in financial markets, after-hours stock trading, electronic communications networks (ECNs), electronic markets

Research Description

Terrence “Terry” Hendershott is the Willis H. Booth Chair in Banking and Finance II, and Faculty Director of the Master of Financial Engineering Program.  He chaired the NASDAQ Economic Advisory Board and served as a visiting economist at the New York Stock Exchange. His work spans a range of financial instruments trading on exchanges and over the counter in the U.S. and internationally. He is an expert on the structure, design, and regulation of financial markets and how market participants—such as market makers, high-frequency traders, and institutional investors—affect price discovery and liquidity. His research also focuses on the competition between electronic and traditional markets and the role of information technology in those markets. His numerous honors include best paper awards from the Review of Financial Studies and the Financial Review and NYSE and NASDAQ best paper awards on equity trading and market microstructure, respectively. He has served as an associate editor for Management Science, the Journal of Financial Markets, and Information Systems Research. Read More