Competition for order flow has been widely documented for US markets, but it seems to be a relatively new phenomenon in … analyzes the potentially positive liquidity implications of a new trading venue. To this end, we examine the impact of the Chi …-X market entry in French blue chip equities on the liquidity of their home market. Our findings suggest that in consequence of …

buyers through partial retention of assets if and only if their liquidity holdings are large. However, when sellers … their liquidity holdings are small. The model is extended to study the implications for discount window lending and …

crashes. They actually consume liquidity when it is most needed, even if they are rewarded by the exchange to provide … crash. In their place, slow traders provide liquidity, taking advantage of the discounted price. We thus uncover a trade …-off between the greater liquidity and efficiency provided by designated market makers in normal times, and the disruptive …

fragmentation, the resulting implications for liquidity and price efficiency, and the role for public policy. Beyond the concerns … competition between trading venues. …

We study the introduction of single-market liquidity provider incentives in fragmented securities markets. Specifically …, we investigate whether fee rebates for liquidity providers enhance liquidity on the introducing market and thereby … increase its competitiveness and market share. Further, we analyze whether single-market liquidity provider incentives increase …

We examine the role of algorithmic traders (AT) in liquidity supply and demand in the 30 DAX stocks on the Deutsche … monitor market liquidity than human traders. AT consume liquidity when it is cheap, i.e., when the bid-ask quotes are narrow …, and supply liquidity when it is expensive. When spreads are narrow AT are less likely to submit new orders, less likely to …

This paper studies the impact of contracted market makers by investigating the liquidity provider scheme in Sweden. The … results show that the stocks become more liquid after the introduction of the contracted market makers. The liquidity … scheme and function as contracted market makers, whose trading behavior contribute to documented liquidity improvement. After …

solved analytically. We find that informed traders tend to “make” liquidity in illiquid markets and “take” liquidity from …

market manipulation, the highest volatility and probability of market crashes, yet the highest liquidity. The so … detect spoofing market manipulation, lower volatility and probability of market crashes, but lower liquidity levels. Finally …