Terrence Hendershott

Professor and Willis H. Booth Chair in Banking and Finance,
Haas School of Business,
University of California, Berkeley

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Education

Terrence “Terry” Hendershott is a recognized authority on financial markets, with expertise in trading, market microstructure, and market manipulation. Professor Hendershott has analyzed trading-related and market design issues in both traditional and crypto markets. He also has deep experience in securities matters. In multiple matters, Professor Hendershott has addressed class certification issues, achieving favorable outcomes for clients where the proposed class was ultimately not certified. In addition, he has addressed loss causation and damages issues, including market efficiency and price impact analyses.

Professor Hendershott’s academic research focuses on financial market design, structure, competition, and how the activities of market participants affect price discovery and liquidity. He is an expert on a range of financial instruments trading both on exchanges and over the counter (OTC).

Professor Hendershott has extensive testifying experience in depositions, arbitrations, and trials. His expertise encompasses U.S. and international financial markets, including equities, exchange-traded funds (ETFs), corporate and government debt, commodities, crypto tokens and stablecoins, foreign exchange (FX), futures, and other products.

In market microstructure matters, Professor Hendershott has testified on a range of issues, including claims related to “last-look” practices, market manipulation and disruptive trading, high-frequency trading (HFT) and algorithmic trading, trading execution, trading orders and price impact, intellectual property issues related to trade secrets and patents, and financial market design, as well as market efficiency and price discovery. He also testified in the first insider trading claim litigated to trial in the Delaware Chancery Court, in which the Chancellor found for the defendant.

In his academic research, Professor Hendershott examines the design, regulation, and structure of stock exchanges, electronic communications networks, and over-the-counter markets. He has analyzed how different market participants, such as market makers, algorithmic and high-frequency traders, and institutional investors, affect price discovery and liquidity. In that context, he has also analyzed the interplay of and competition between electronic and traditional markets, as well as the role of information technology.

Professor Hendershott has received numerous honors for his research. These include the Michael J. Brennan Award for the best paper published in the Review of Financial Studies; the New York Stock Exchange best paper on equity trading, awarded by the Western Finance Association; the Outstanding Publication Award from the Financial Review; and the NASDAQ Award for the best paper on market microstructure, awarded by the Financial Management Association International. He has served as an associate editor for the Journal of Finance, Journal of Financial EconomicsManagement Science, Journal of Financial Markets, and Information Systems Research.

At Berkeley Haas, Professor Hendershott has taught courses in high-frequency finance, business analytics, and operations management, among others. Since 2020, he has been the faculty director of the Master of Financial Engineering Program.

Professor Hendershott chaired the NASDAQ Economic Advisory Board and the University of California Retirement System Advisory Board and was a visiting economist at the NYSE.

Article

Stock Exchanges as Platforms for Data and Trading

Case

Delaware Chancery Trial Win

Case

City of Providence, Rhode Island, et al. v. BATS Global Markets Inc. et al.

Event

Expert Forum: Market Manipulation and Disruptive Trading Enforcement

Case

Axiom Investment Advisors LLC et al. v. Deutsche Bank AG

  • “Spoofing and Disruptive Trading in the Derivatives Markets,” Cornerstone Research, Intercontinental Exchange, and Jones Day webinar, 3 August 2021