We study the role of various trader types in providing liquidity in spot and futures markets based on data from the … overnight are the primary liquidity providers in both spot and futures markets. We have two crashes in our sample, both … in both markets. Market stability may require the presence of well-capitalized standby liquidity providers for recovery …

correlation, liquidity correlation, and portfolio rebalancing. A behavioral dimension in the crisis propagation is also examined … that this is driven by behavioral and liquidity mechanisms. The correlated information and portfolio rebalancing hypotheses …