related to markets' ability to guide real investment, and what drives liquidity. Both problems are important to ensure … time-variation in liquidity. I develop a tractable model where conditions among traders vary over time. The resulting … equilibrium offers several new predictions on what drives liquidity variation. For example, there may be significant reductions in …

liquidity, we investigate whether the introduction of MiFID II in Romania has had any effect on the stock market liquidity …. Through our empirical analysis, we were able to estimate a meaningful reduction of liquidity in the Romanian stock market … liquidity, in response to MiFID II, in line with the previous empirical literature. We find that the liquidity of the BET index …