In financial markets, clients entrust their capital and data to financial infrastructure providers who are vulnerable to breaches. We develop a model in which infrastructure providers compete to provide secure and efficient client services, in the presence of a cyber-attacker. In equilibrium,...

We document low cross-sectional correlations between high-frequency market maker (MM) inventory positions, suggesting poor risk sharing. Using a unique data set on Canadian futures markets, a simple inventory cost estimate is 300% above the optimal benchmark. Our model explains how heterogeneity...

We document low cross-sectional correlations between market maker (MM) inventory positions in Canadian futures markets, suggesting imperfect risk sharing. We build a model to understand how cross-sectional heterogeneity in inventories shapes liquidity provision in time-priority markets. The...