In this paper we examine the quantitative effects of margin regulation on volatility in asset markets. We consider a … presence of collateral constraints leads to strong excess volatility. Thus, a regulation of margin requirements may have … stabilizing effects. However, in line with the empirical evidence on margin regulation in U.S. stock markets, we show that changes …

Do financial regulation advisors help their clients become more profitable? In this paper, we present a model where … compliance costs and higher profit advantages they confer may lead to more regulation. Regulators may furthermore tighten … regulation - with the expectation that financial service firms will adapt somehow. We present a fresh perspective on the Menon …