04-01-2014 Agency Problems in Order Routing Decisions: The Making and Taking of Client Money

Tuesday, April 1st, 2014

Larry Harris, Ph.D, CFA
USC Marshall School of Business

Chair: Charlotte Chamberlain

A Portfolio Management Sponsored Group Event

Exchanges now use convoluted systems for pricing their services.  Maker-taker and taker-maker exchange pricing systems affect the routing of orders by brokers who do not pass through exchange access fees and liquidity rebates to their clients.  Limit orders often are sent to the markets where they will trade last.  The problem particularly affects retail orders and institutional orders generated by buy-side algorithms that many institutional traders use. The introduction of taker-maker exchanges has effectively split the one-cent tick in two, which has halved the cost of front-running standing orders.

Speaker Bio:

Larry Harris
holds the Fred V. Keenan Chair in Finance at the USC Marshall School of Business.  His research, teaching, and consulting address regulatory and practitioner issues in trading and investment management.  He authored Trading and Exchanges: Market Microstructure for Practitioners, a widely regarded “must read” for entrants into the securities industry.  Professor Harris served as SEC Chief Economist from 2002-2004.  He currently serves as lead independent director of Interactive Brokers (IBKR), chairman of the Clipper Fund, trustee of the RS Funds, and research coordinator of the Q-Group.  Dr. Harris received his Ph.D. in Economics from the University of Chicago.  He is a CFA charterholder.





As a participant in the CFA Institute Approved-Provider Program, the
CFA Society of Los Angeles has determined that this program qualifies
for 1 credit hours. If you are a CFA Institute member, CE credit for
your participation in this program will be automatically recorded in your CE Diary.

Registration Links:
CFALA Members: $20.00 (place cursor on amount for link)
Student Discount: $30.00 (Valid Student ID required at the event)
Non-members: $50.00 (place cursor on amount for link)

Date: Tuesday, April 1st, 2014

Time: 12:00pm – 1:30pm, Lunch

Location: Millennium Biltmore Hotel Los Angeles  
                 506 South Grand Avenue
                 Los Angeles, CA 90071-2607

Parking: Hotel Valet Parking: $20.00
               Self-Parking at Pershing Square (located directly across the street on Olive St.): $10.00

Dress Code: Business Casual

Payment Information:

Methods of payment accepted: Visa/Mastercard, American Express and Discover. If you prefer to pay by check please register online and select "purchase order" as your payment option and enter your last name as the purchase order number. Mail check to: CFA Society of Los Angeles, 520 S. Grand Ave, Suite 370, Los Angeles CA 90071.

*Credit card payments will only be accepted through the secure online registration, and not by phone or email.


Cancellations must be received in writing by 9:00 am the day prior to the event. No phone cancellations are accepted. Please fax to the CFALA office at (213) 613-1233 or e-mail info@cfala.org. Member “no-shows” will be billed the non-member fee ($50) for the event which is posted on the CFALA website.



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