Professor Michael J. Aitken

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Michael J. Aitken AM

Professor in ICT Strategy


Contact Details

Tel: +61 2 8088 4200



Finance, Security Market Design, Market Integrity Assessment, Insider Trading, Market Manipulation, Front-running, High Frequency Trading


About Professor Michael J. Aitken AM

Professor in ICT Strategy

BBS (Honours 1) (Massey University), MBS (Massey University), PhD (UNSW)

Teaching Areas

  • Accounting, Economics & Finance

Research Area Affiliations

  • Finance

Research statement

Listed among the top 1000 authors publishing in the finance literature over the last 50 years, Professor Michael Aitken is passionate about building bridges between the University and international capital and health market communities with a particular interest in the design and deployment of fraud detection and market quality assessment systems.

Professor Aitken’s primary objective is to demonstrate that academics can play vital roles in value creation in the health and capital markets arena not only in terms of preparing and providing valuable human capital but by designing and deploying innovative software products that will lead to commercial return. His postgraduate students “learn by doing” in that they are integrally involved in the design and deployment of the software systems he has championed,

In recognition of his contribution to research he was awarded the Business Higher Education Roundtable (BHERT) award for Outstanding Achievement in Collaboration in Education and Training in a program over 3 years in duration in 1999. In 2010 he was named, Ernst and Young National ICT Entrepreneur of the Year, NSW ICT and Overall Exporter of the Year and the Prime Minister’s ICT Exporter of the Year for his work with the SMARTS markets surveillance system. He was awarded a Member of the Order of Australia in June 2014 for his services to education and market surveillance and in December 2015 was included in Knowledge Nation 100, identifying him as one of Australia’s top innovators.

Contribution to management practice

Professor Michael Aitken is a well regarded entrepreneur who founded the CMCRC (, SIRCA ( as well as the SMARTS Group (, a private Australian company that set the standard in real-time market surveillance, recently sold to NASDAQ-OMX. He also established Lorica health ( a company providing fraud identification services in the health sector. He is also a principal in Capital Markets Consulting (, a business providing expert witness services to the capital market community

He has overseen the development of fraud detection technologies not only for securities markets, but also accounting and audit markets and in health insurance and general insurance ( markets. In recognition of his contributions to industry, in 2010 he was named E&Y ICT Entrepreneur of the Year and Prime Minister Exporter of the Year. He was also inducted as a member of the order of Australia in 2014 for his services to education and market surveillance.

As Chief Scientist of the CMCRC, he leads a team of over 30 academic and industry researchers and over 100 PhD students, in a world class PhD program across the disciplines of health, finance, engineering, computer science and information systems.

Media topics

  • Security market design
  • Market integrity assessment
  • Insider trading
  • Market manipulation
  • Front-running
  • High frequency trading


Journal articles

  • Aitken, M., Chen, H., & Foley, S. (2017). The impact of fragmentation, exchange fees and liquidity provision on market quality. Journal of Empirical Finance, 41, 1-21. DOI: 10.1016/j.jempfin.2016.10.002
  • Pöppe, T., Aitken, M., Schiereck, D., & Wiegand, I. (2016). A PIN per day shows what news convey: the intraday probability of informed trading. Review of Quantitative Finance and Accounting, 47(4), 1187-1220. DOI: 10.1007/s11156-015-0535-z
  • Aitken, M., Cumming, D., & Zhan, F. (2015). High frequency trading and end-of-day price dislocation. Journal of Banking and Finance, 59, 330-349. DOI: 10.1016/j.jbankfin.2015.06.011
  • Aitken, M. J., Frederick, F. H., & Ji, S. (2015). A Worldwide Examination of Exchange Market Quality: Greater Integrity Increases Market Efficiency. Journal of Business Ethics, 132(1), 147-170. DOI: 10.1007/s10551-014-2294-5
  • Aitken, M. J., Aspris, A., Foley, S., & Frederick, F. H. (2015). Market Fairness: The Poor Country Cousin of Market Efficiency. Journal of Business Ethics, 1-19. Advance online publication. DOI: 10.1007/s10551-015-2964-y
  • Aitken, M., Cumming, D., & Zhan, F. (2015). Exchange trading rules, surveillance and suspected insider trading. Journal of Corporate Finance, 34, 311-330. DOI: 10.1016/j.jcorpfin.2015.07.013
  • Aitken, M., Cumming, D., & Zhan, F. (2014). Trade size, high-frequency trading, and colocation around the world. European Journal of Finance, 1-21. Advance online publication. DOI: 10.1080/1351847X.2014.917119
  • Aitken, M. J., & Harris, F. H. D. (2011). Evidence-based policy making for financial markets: a fairness and efficiency framework for assessing market quality. Journal of trading, 6(3), 22-31. DOI: 10.3905/jot.2011.6.3.022
  • Aitken, M., de Harris, B. F. H., McInish, T. H., & Wong, K. (2009). What order flow reveals about the role of the underwriter in IPO aftermarkets. International Journal of Managerial Finance, 5(1), 16-49. DOI: 10.1108/17439130910932332
  • Aitken, M. J., Cook, R. M., Harris, F., McInish, T. H. (2009). Market design and execution cost for matched Securities Worldwide. Institutional Investors Journals, Winter 2009(1), 38-76.DOI: 10.3905/tr.2009.1.38
  • Aitken, M., Almeida, N., Harris, F. H. D., & McInish, T. H. (2008). Financial analysts and price discovery. Accounting and Finance, 48(1), 1-24. DOI: 10.1111/j.1467-629X.2007.00235.x
  • Aitken, M., Harris, F. H. D., McInish, T. H., & Segara, R. (2008). Are Third-party equity warrants redundant? Journal of financial transformation, 22, 153-161.
  • Aitken, M., Almeida, N., Frederick, F. H., & McInish, T. H. (2007). Liquidity supply in electronic markets. Journal of Financial Markets, 10(2), 144-168. DOI: 10.1016/j.finmar.2006.12.001
  • Aitken, M., & Comerton-Forde, C. (2005). Do reductions in tick sizes influence liquidity? Accounting and Finance, 45(2), 171-184. DOI: 10.1111/j.1467-629x.2004.00128.x
  • Aitken, M., & Segara, R. (2005). Impact of warrant introductions on the behaviour of underlying stocks: Australian evidence. Accounting and Finance, 45(1), 127-144. DOI: 10.1111/j.1467-629x.2004.00126.x
  • Aitken, M., Comerton-Forde, C., & Frino, A. (2005). Closing call auctions and liquidity. Accounting and Finance, 45(4), 501-518. DOI: 10.1111/j.1467-629X.2005.00155.x
  • Aitken, M. J., Frino, A., Hill, A. M., & Jarnecic, E. (2004). The impact of electronic trading on bid-ask spreads: Evidence from futures markets in Hong Kong, London, and Sydney. Journal of Futures Markets, 24(7), 675-696. DOI: 10.1002/fut.20106
  • Aitken, M., & Comerton-Forde, C. (2003). How should liquidity be measured? Pacific Basin Finance Journal, 11(1), 45-59. DOI: 10.1016/S0927-538X(02)00093-8
  • Aitken, M., Frino, A., & Chappel, N. (2003). Capital Markets. In A review of the Australian financial Services Industry (pp. 14-56). SIRCA.
  • Aitken, M. J., Berkman, H., & Mak, D. (2001). The use of undisclosed limit orders on the Australian Stock Exchange. Journal of Banking and Finance, 25(8), 1589-1603. DOI: 10.1016/S0378-4266(00)00149-7
  • Aitken, M. J., Frino, A., Mccorry, M. S., & Swan, P. L. (1998). Short sales are almost instantaneously bad news: Evidence from the Australian stock exchange. Journal of Finance, 53(6), 2205-2223.
  • Aitken, M., Frino, A., & Jarnecic, E. (1997). Intraday returns and the Frequency of Trading at the Ask in Stock Index Futures Markets: A Research Note. Abacus, 33(2), 228-235. DOI: 10.1111/1467-6281.00013
  • Aitken, M., Hooper, C., & Pickering, J. (1997). Determinants of voluntary disclosure of segment information: A re-examination of the role of diversification strategy. Accounting and Finance, 37(1), 89-109. DOI: 10.1111/j.1467-629X.1997.tb00315.x
  • Aitken, M., & Frino, A. (1996). Asymmetry in stock returns following block trades on the Australian Stock Exchange: A Note. Abacus, 32(1), 54-61. DOI: 10.1111/j.1467-6281.1996.tb00450.x
  • Aitken, M., & Frino, A. (1996). The determinants of market bid ask spreads on the Australian Stock exchange: Cross-sectional analysis. Accounting and Finance, 36(1), 51-63. DOI: 10.1111/j.1467-629X.1996.tb00298.x
  • Aitken, M., Frino, A., & Winn, R. (1996). Consensus analysts' earnings forecasts and security returns. Asia Pacific Journal of Management, 13(2), 101-110.
  • Aitken, M., & Frino, A. (1996). The accuracy of the tick test: Evidence from the Australian stock exchange. Journal of Banking and Finance, 20(10), 1715-1729. DOI: 10.1016/S0378-4266(96)00008-8
  • Aitken, M., Brown, P., Buckland, C., Izan, H. Y., & Walter, T. (1996). Price clustering on the Australian stock exchange. Pacific Basin Finance Journal, 4(2-3), 297-314.
  • Aitken, M., & Frino, A. (1996). Execution Costs Associated with Institutional Trades on SEATS. Pacific Basin Finance Journal, 4, 45-58.
  • Aitken, M., Choo, F., Firth, M., & Simnett, R. (1995). Determinants of Delay in a Company's Audit report. Advances in Accounting, 13, 1-20.
  • Aitken, M., & Latimer, P. (1995). Principal Trading by Stockbrokers. Australian journal of corporate law, 5, 1-16.
  • Aitken, M., Kua, A., Brown, P., Izan, H. Y., & Watter, T. (1995). An Intraday Analysis of the Probability of Trading on the ASX at the Asking Price. Australian Journal of Management, 20(2), 115-154. DOI: 10.1177/031289629502000202
  • Aitken, M., Swan, P. L., & Garvey, G. (1995). How Brokers Facilitate Trade for Long-term Clients in a Competitive Securities Market. Journal of Business, 68, 1-34.
  • AITKEN, M. I. C. H. A. E. L. J., CZERNKOWSKI, R. O. B. E. R. T. M., & HOOPER, C. A. M. E. R. O. N. G. (1994). The Information Content of Segment Disclosures: Australian Evidence. Abacus, 30(1), 65-77. DOI: 10.1111/j.1467-6281.1994.tb00343.x
  • Aitken, M. J., & Loftus, J. A. (1994). Determinants of accounting policy choice in the Australian property industry: A portfolio approach. Accounting & Finance, 34(2), 1-20. DOI: 10.1111/j.1467-629X.1994.tb00266.x
  • Aitken, M., Frino, A., & Sayers, S. (1994). The intra-day impact of block trades on the Australian stock exchange. Asia Pacific Journal of Management, 11(2), 237-253. DOI: 10.1007/BF01739201
  • Aitken, M. J., & Swan, P. L. (1993). Principal and agency trades by stockbrokers are complementary: the welfare effects of deregulating agency trading and banning principal trades. Accounting & Finance, 33(2), 19-42. DOI: 10.1111/j.1467-629X.1993.tb00197.x
  • Aitken, M., & Czernkowski, R. (1992). Information Leakage Prior to Takeover Announcements: The Effect of Media Reports. Accounting and Business Research, 23(89), 3-20. DOI: 10.1080/00014788.1992.9729856
  • AITKEN, M. I. C. H. A. E. L., & CZERNKOWSKI, R. O. B. E. R. T. (1991). Organizational Change within the Stockbroking Industry: A Contracting Perspective. Abacus, 27(2), 97-116. DOI: 10.1111/j.1467-6281.1991.tb00261.x
  • Aitken, M. J. (1991). The determinants of brokerage fees in a competitive environment. Accounting & Finance, 31(1), 51-68. DOI: 10.1111/j.1467-629X.1991.tb00253.x
  • Aitken, M., & Simnett, R. (1991). Australian Audit Reports: 1980‐89. Australian Accounting Review, 1(1), 12-19. DOI: 10.1111/j.1835-2561.1991.tb00121.x
  • Aitken, M., & Ferris, G. (1991). A note on the effect of controlling for transaction costs on the small firm anomaly: Additional Australian evidence. Journal of Banking and Finance, 15(6), 1195-1202. DOI: 10.1016/0378-4266(91)90058-T
  • Aitken, M. (1991). A General Theory of Financial Reporting: Is it Possible. The international journal of accounting, 25, 221-233.
  • The Securities Industry under Negotiated Brokerage Commissions: Changes to the Structure and Performance of AASE Member Firms, Journal of Business Finance and Accounting 17(2) Spring 1990, 213- 245.
  • Employee Share Ownership Schemes: Issues and Evidence, Journal of Industrial Relations, with R Wood, June 1989, 147-168.
  • The Trading Stock Valuation Adjustment: Extensions and Modifications, with T Walter, Australian Journal of Management 10, 7, June 1985, 77-96.
  • What is this thing called Financial Accounting Theory? An Historical Insight, Accounting History 9, Summer 1985, 21-31.
  • The Real Objective of the International Accounting Standards Committee, with T Wise, International Dispelling Journal of Accounting Education and Research 20, 1, Fall 1984, 171-177.
  • Arguments against International Accounting Standards, with A. Islam, International Journal of Accounting Education and Research 19, 2, Spring 1984, 35-46.
  • Regulating Taxi Operators - Some Historical Insights, with David Williams in Occupational Regulation and the Public Interest, Albon, R. and Lindsay G. (eds.) June 1984.
  • Group Accounts - An Introduction to Some Presentation, Compatibility and Taxation Considerations, with T Wise, The Australian Accountant, May 1983.
  • Social Responsibility: A Concept Replete with Problems, Singapore Management Review, December 1982.
  • Coming to Grips with Books of First Entry, The Australian Accountant, March 1982.
  • Loan Self-Insurance Schemes - Some Evidence of their use in Australia, with David Williams, Management Forum, December 1981.
  • Liquidate or Trade-Out: A Note on the Price Level Complication, The Chartered Accountant in Australia, November 1981.


  • Does High Frequency Trading Enhance of Hinder Market Fairness, with D Cumming and F. Zhan, Newsletter of the Centre for Financial Regulation, University of Notre Dame, Winter, 2013, Issue 10.
  • Evidence-Based Regulatory Policy Making for Financial Markets: A Panel Discussion of a Proposed Framework for Assessing Market Quality, with Frederick H de Harris, Alfred Berkley, James Overdahl and Kumar Venkataraman. A Guide to Global Liquidity 3: Market Structure, Regulation, and Trading Strategies, New York: IIJ (Second Quarter/Spring 2011, pgs 24-44.
  • Enumerating the Cost of Insider Trading, Handbook of World Stock, Derivative and Commodity Exchanges, Mondo Visione Ltd UK, 2010.
  • Trade-Based Manipulation and Market Efficiency across Equity Markets Worldwide, 2000-2005, with Rick H De.B Harris and Ji Shan, Handbook of World Stock, Derivative and Commodity Exchanges, Mondo Visione Ltd UK, 2009.
  • Are Third-Party Equity Warrants Redundant? with Frederick H. deB. Harris, Thomas H. McInish and Rueben Segara, Journal of Financial Transformation, volume 22, 153-161, 2008.
  • Liquidity and Transaction Costs of Asia-Pacific Stock Index Futures, with Alex Frino, Andrew Lapone and Jeff Wong Handbook of World Stock, Derivative and Commodity Exchanges, Mondo Visione Ltd UK, 2008, pages lxvii-lxx. ISBN 0 9535823 8 8.
  • Beyond MiFID – Operationalising Best Execution, with Andreas Furche, Handbook of World Stock, Derivative and Commodity Exchanges, Mondo Visione Ltd UK, 2007. ISBN 0 953582361.
  • Brokers - the Key to Market Integrity in a Global Market? with Andreas Furche, Handbook of World Stock, Derivative and Commodity Exchanges, Mondo Visione Ltd UK, 2006.
  • Ranking World Equity Markets on the Basis of Market Efficiency and Integrity?, with Audris Siow, The Hewlett-Packard Handbook of World Stock, Derivative and Commodity Exchanges, Bridges, Mondo Visione Ltd UK, 2003, pages 49-55.
  • Opening the Curtain on Window Dressing, with Carole Comerton-Forde, The Bridge Handbook of World Stock, Derivative and Commodity Exchanges, Bridges, Mondo Visione Ltd UK, 2002, pages lxxxv -lxxxiv.
  • 32 fortnightly columns between March 2000 and April 2001 for the weekly magazine Investor’s Advisor on a wide range of policy issues relating the design of securities markets.
  • Rationalising Clearing and Settlement in Australia: A User Perspective, SIRCA Industry Report, written in association with Carole Comerton-Forde and Michael Briers on behalf of the Australian Securities Markets Users Group (AUSMUG), 24 October 2000, 46 pages.
  • Intelligent trading in the Twenty-first Century: It’s not all Upside, with Carole Comerton-Forde, The Bridge Handbook of World Stock, Derivative and Commodity Exchanges, Bridges, Mondo Visione Ltd, UK, 2000, cxciv-cc.
  • The Impact of NASDAQ Listing on ASX Stocks, ASX Perspective, 1st Quarter, 2000, 64-67.
  • Asia’s Financial Markets: Capitalising on Reform; Chapter 5, with C. Comerton-Forde and Others, East Asia Analytical Unit, 1999.
  • How much did we gain from the Halving of Stamp Duty?  with P. Swan, ASX Perspective 2, 4-10, 1997.
  • Are Options Beneficial for Investors of Underlying Stocks? with Alex Frino and Elvis Jarnecic, ASX Perspective 3, 72-76,1996.
  • Earnings news and small traders: A note, with M. Aitken, P. Brown and T. Walter, ASX Perspective, 1995.
  • Is There and Optimum Tick Size? with A. Frino and H Madhoo,  ASX Perspective 4, 18-24, 1995.
  • Intraday Price Response and Order Imbalance Surrounding Earnings Releases, with P Brown, A Frino and T Walter, ASX Perspective 1, 31-35, 1995.
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