Banking regulation and market making / by David A. Cimon and Corey Garriott.: FB3-5/2017-7E-PDF
“We present a model of market makers subject to recent banking regulations: liquidity and capital constraints in the style of Basel III and a position limit in the style of the Volcker Rule. Regulation causes market makers to reduce their intermediation by refusing principal positions. However, it can improve the bid-ask spread because it induces new market makers to enter. Since market makers intermediate less, asset prices exhibit a liquidity premium. Costs of regulation can be assessed by measuring principal positions and asset prices but not by measuring bid-ask spreads"--Abstract, p. ii.
Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.833270&sl=0
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| Title | Banking regulation and market making / by David A. Cimon and Corey Garriott. |
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| Publication type | Monograph - View Master Record |
| Language | [English] |
| Format | Digital text |
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| Description | ii, 59 p. : charts |
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