We consider a model in which dealers intermediate trades between clients and provide immediacy, or, market liquidity … dealers' ability to raise external finance and hence to compete aggressively with each other in providing liquidity. To … leverage is therefore endogenous and related to variations in liquidity across otherwise unrelated markets. Our results shed …

tightening capital regulations on market liquidity …

We provide a model that links an asset's market liquidity (i.e., the ease with which it is traded) and traders' funding … liquidity (i.e., the ease with which they can obtain funding). Traders provide market liquidity, and their ability to do so … on the assets' market liquidity. We show that, under certain conditions, margins are destabilizing and market liquidity …

We provide a model that links an asset's market liquidity - i.e., the ease with which it is traded - and traders …' funding liquidity - i.e., the ease with which they can obtain funding. Traders provide market liquidity, and their ability to … are charged, depend on the assets' market liquidity. We show that, under certain conditions, margins are destabilizing and …

Do competition and incentives offered to designated market makers (DMMs) improve market liquidity? Using data from NYSE … in rebates and requirements for DMMs, do not have any tangible effect on market liquidity. Our results are of relevance …

Do competition and incentives offered to designated market makers (DMMs) improve market liquidity? Using data from NYSE … changes in rebates and requirements for DMMs, do not have any tangible effect on market liquidity. Our results are of …

regulations aimed at reducing counterparty risk and improving liquidity can be ineffcient. Such regulations have a direct positive …