Pic_Thibaut

In this talk, we will model sequentialauctionsin financial markets and study the efficiency of this kind of market mechanisms听compared with limit order books. In this type of market orders of market participants are received during a period of time. At the end of this duration, a clearing price of theauctionis determined as the price maximizing the exchanged volume at the clearing time according to the supply and demand of each market participant. We will first focus on the optimal duration of anauctionto reduce the error between the clearing price and the efficient price of the stock considered and compute the optimal duration of theauctionsfor some stocks traded on Euronext.听We then extend the study to a new market mechanism 鈥渁d hoc electronicauctiondesign鈥 (AHEAD) in which market participants have the opportunity to trigger theauctioninstead of waiting for the opening of theauction. We will finally study some possible flaws ofauctionmarkets and the remedies in terms of regulation policy we can adopt.听