Books about the systems behind banking
February 10, 2006 8:04 PM Subscribe
Are there books that explain, in great detail, the systems that clear trades (equities and options) on the markets and shuffle funds among banks in the U.S.?
posted by qslack to work & money (2 answers total)
This is a personal curiosity. I know how all of these things work, but I am interested in the mechanisms behind them
Specifically, I'm looking for books (or other resources) that explain in detail what happens in...
- Buying a stock -- info about how big brokerages work the spread, and also info about the electronic systems that provide liquidity for smaller trades
- Shorting a stock -- what steps does the broker take to find a bank from which to borrow the shares?
- Buying/selling options -- how is the exchange of the option contract between buyer and seller handled?
- Transferring money -- details about ACH (the article's "ACH process" section is good, but I'd like to read more about what happens on the Fed's side)
In summary, where can I read more about the systems that transfer huge amounts of money among banks and people?