In this paper we survey the theoretical and empirical literatures on market liquidity. We organize both literatures …

Do competition and incentives offered to designated market makers (DMMs) improve market liquidity? Using data from NYSE … in rebates and requirements for DMMs, do not have any tangible effect on market liquidity. Our results are of relevance …

We study the role of various trader types in providing liquidity in spot and futures markets based on data from the … overnight are the primary liquidity providers in both spot and futures markets. We have two crashes in our sample, both … in both markets. Market stability may require the presence of well-capitalized standby liquidity providers for recovery …

indirectly indicate that liquidators require market liquidity to carry out large liquidations and affect market conditions while …

This article examines how the introduction of an ETF replicating a stock index impacts on the liquidity of the … underlying stocks when the ETF market involves liquidity providers (LPs). We find that index stock spreads decline, relative to … those of non-index stocks, after the introduction of the ETF but this liquidity improvement is not driven by changes in …

default swap (CDS) credit spreads should track each other closely. In addition, liquidity risk should be priced into both … autoregression framework to establish the credit and liquidity spread interactions over the 2009–2010 crisis period. We find …, for several countries, including Greece, Ireland and Portugal the liquidity of the sovereign CDS market has a substantial …

improvement in liquidity and trading activity. …