In this paper, we re-assess the role of risk premiums in FX survey forecasts. Given that market makers in foreign exchange are both price setters and contributors to surveys such as Consensus Forecasts or FX4Casts we may expect risk premiums of FX liquidity provision to emerge in forecast data...

Do competition and incentives offered to designated market makers (DMMs) improve market liquidity? We employ data from NYSE Euronext Paris to show that exogenous changes in contract design lead to significant decreases in quoted and effective spreads. In particular, market liquidity increases...

We show a significant loss in U.S. Treasury market functionality when intensive use of dealer balance sheets is needed to intermediate bond markets, as in March 2020. Although yield volatility explains most of the variation in Treasury market liquidity over time, when dealer balance sheet...

In this paper, we characterise the liquidity provision and price discovery roles of dealers and HFTs in the FX spot market during the sample period between 2012 and 2015. We find that they have different responses to adverse market conditions: HFT liquidity provision is less sensitive to spikes...

Random changes in firms' stock index membership have important implications on sell-side analysts' career outcomes. Covered firms moving from the bottom of Russell 1000 to the top of Russell 2000 significantly increase an analyst's likelihood of moving to a high-status broker or receiving a...

60% of the ESG mutual funds introduced after 2013 are managed by teams that also manage non-ESG funds. The co-managed non-ESG funds increase their holdings of high ESG stocks and exhibit superior performance among these stocks, reflecting an ability to cherry-pick the best ideas. Despite being...

We examine several measures of uncertainty to make five points. First, equity market traders and executives at nonfinancial firms have shared similar assessments about one-year-ahead uncertainty since the pandemic struck. Both the one-year VIX and our survey-based measure of firm-level...