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

of over-the-counter securities markets. We find that such regulations promote entry of dealers, thus fostering …. General equilibrium effects imply that more competition can distort incentives of all dealers to invest in efficient …

. Moreover, although they mitigate credit risk, CCPs create liquidity risks, because they rely on participants to provide cash …. Such requirements increase with both market volatility and default; consequently, CCP liquidity needs are inherently … financial institutions default. Liquidity-focused macroprudential stress tests could help to assess and manage this systemic …

The presence of information asymmetry increases the probability that a potential predator will provide liquidity rather … findings. These results imply that strategic traders are more likely to stabilize markets by providing liquidity when …

asset markets during the Covid-19 crisis. We show that mutual fund liquidity transformation led to pronounced investor … purchase of illiquid securities effectively stabilized mutual fund liquidity transformation and alleviated the selling pressure …

I study how liquidity management affects fragility, or vulnerability to fund flows, in mutual funds and their … underlying assets. Using the SEC Rule on mutual fund liquidity risk management in 2016 as an exogenous shock, I show that mutual … stabilized fund flows and flow-performance sensitivity. Overall, liquidity management could be costly for investors …

COVID-19 pandemic, and describe the Money Market Mutual Fund Liquidity Facility (MMLF), which the Federal Reserve …