Professor | Willis H. Booth Chair in Banking and Finance II | Faculty Director, Master of Financial Engineering Program
Finance | Operations & IT Management
Terrence “Terry” Hendershott 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.
Expertise and Research Interests
- Market Microstructure
- Electronic Trading
- Market Making
- Algorithmic Trading
- High-frequency Trading
- Over-the-counter Markets
- Information Technology in Financial Markets
- Financial Market Regulation
- Terrence Hendershott, Jonathan Brogaard, and Ryan Riordan. Price Discovery without Trading: Evidence from Limit Orders. Journal of Finance.
- Terrence Hendershott, Roman Kozhan, and Vikas Raman. Short Selling and Price Discovery in Corporate Bonds. Journal of Financial and Quantitative Analysis.
- Terrence Hendershott, Jonathan Brogaard, and Ryan Riordan. High Frequency Trading and the 2008 Short Sale Ban. Journal of Financial Economics.
- Terry Hendershott, Dmitry Livdan, and Norman Schürhoff. Are Institutions Informed about News?. Journal of Financial Economics.
- Terry Hendershott and Ananth Madhavan. Click or Call? Auction versus Search in the Over-the-Counter Market. Journal of Finance.
- Terrence Hendershott and Albert J. Menkveld. Price Pressures. Journal of Financial Economics.
- Terrence Hendershott, Jonathan Brogaard, and Ryan Riordan. High-Frequency Trading and Price Discovery. Review of Financial Studies.
- Terrence Hendershott, Charles Jones, and Albert Menkveld. Does Algorithmic Trading Improve Liquidity?. Journal of Finance.
- Terrence Hendershott, Michael Barclay, and Kenneth Kotz. Automation Versus Intermediation: Evidence from Treasuries Going Off the Run. Journal of Finance.
- Terrence Hendershott, Michael Barclay, and Tim McCormick. Competition Among Trading Venues: Information and Trading on Electronic Communications Network. Journal of Finance.
- Terrence Hendershott and Haim Mendelson. Crossing Networks and Dealer Markets: Competition and Performance. Journal of Finance.
At Haas since 2001
2020 – Faculty Director, Master of Financial Engineering Program
2017 – present, Willis H. Booth Chair in Banking and Finance, Haas School of Business
2012 – 2017, Cheryl and Christian Valentine Chair, Haas School of Business
2011 – 2012, Barbara and Gerson Bakar Faculty Fellow, Haas School of Business
2005 – 2006, Visiting Economist, New York Stock Exchange
1999 – 2001, Xerox Assistant Professor of Computers & Information Systems, Simon School of Business Administration, University of Rochester
Michael J. Brennan Best Paper Award
Awarded for best paper published in Review of Financial Studies
Financial Review Outstanding Publication Award
Philip Brown Prize
New York Stock Exchange Euronext Award
Awarded for the best paper on equity trading, Western Finance Association Meetings
Nasdaq Award for best paper on market microstructure, Financial Management Association
Schwabacher Fellowship Award
2005 – 2006
The effect of technological and regulatory changes on market structure and transparency across equity and fixed-income markets in the US and Europe
Norwegian Finance Initiative (NFI)
CAREER: Electronic Trading Systems
National Science Foundation Grant
NSF Grant #0133848
Entrepreneurship & Innovation Research Grant
- The long view, San Francisco Business Times, 01/22/2021
- Insiders explain how fractional-share trading went from fringe to must-have — and who’s actually doing it in an industry where everyone wants to be an early mover, Business Insider, 02/19/2020
- Fans Flip Out Over NFL’s Rule on Coin Toss and Overtime. Is It Fair?, The Wall Street Journal, 02/01/2019
- HFT mixed bag for retail investors say experts, Forbes, 09/24/2018
- INSIGHTS: Meet The Next Generation of TCA, Traders, 06/16/2016
- SEC shouldn’t approve IEX until Reg NMS is re-examined, The Hill, 03/18/2016
- High Frequency Finance, MFE
- Introduction to Business Analytics, Undergraduate
- Past Courses:, Analytic Decision Modeling Using Spreadsheets
Information Technology Strategy