Interest rate derivatives are among the most actively traded financial instruments in the main currency areas. With values of positions reacting immediately to the underlying index of daily interbank rates, manipulation has become an increasing challenge for the operational implementation of...

We study differences in the price paid for liquidity across banks using price data atthe individual bank level. Unique to this paper, we also have data on individualbanks’ reserve requirements and actual reserve holdings, thus allowing us to gaugethe extent to which a bank is short or long...

[...]We address several questions in this paper. First,how could macro markets be useful to the average person?Second, how large are the potential benefits from diversificationif these markets were to be introduced andused optimally? Third, can existing financial marketsachieve a similar degree...