. Due to frictions in traders' market access, liquidity providers on alternative trading platforms may be exposed to an …. Consistent with our theory, we find a negative relationship between the competitiveness of Chi-X's quotes and this excess adverse … selection risk faced by liquidity providers in the cross-section. Our results have some implications for the design of best …

frequency trading, can induce demand for liquidity to be upward sloping and strategic complementarities in traders' liquidity … consumption decisions traders demand more liquidity when the market becomes less liquid, which in turn makes the market more … illiquid, fostering the initial demand hike. This can generate market instability, where an initial dearth of liquidity …

speculative trading increases. As a result, market liquidity deteriorates and short-term volatility rises. Our findings hold for a …

. Due to frictions in traders’ market access, liquidity providers on alternative trading platforms may be exposed to an …. Consistent with our theory, we find a negative relationship between the competitiveness of Chi-X’s quotes and this excess adverse … selection risk faced by liquidity providers in the cross-section. Our results have some implications for the design of best …

We use the introduction of a financial transaction tax (FTT) in France in 2012 to test competing theories on its impact …. Instead, our results are in line with the hypothesis that a lower trading volume reduces liquidity, and thereby market quality …

following the auctions. This effect is stronger when market volatility is higher. We rationalize both findings using a simple …

the presence of institutional investors affects volatility and liquidity in secondary bank bond markets. We find that non …' liquidity conditions, at the cost of significantly increasing volatility of daily returns. The effect translates to more than a … 19% improvement in liquidity conditions and up to 57% increase in daily-return volatility, assuming MMFs hold about 10 …