00000nam 2200000za 4500 9.833270 CaOODSP 20221107150202 cr ||||||||||| 170302s2017 oncd ob f000 0 eng d CaOODSP eng eng fre n-cn--- FB3-5/2017-7E-PDF Cimon, David A. Banking regulation and market making [electronic resource] / by David A. Cimon and Corey Garriott. [Ottawa] : Bank of Canada, 2017. ii, 59 p. : charts Bank of Canada staff working paper, 1701-9397 ; 2017-7 "February 2017." Includes bibliographical references (p. 32-33). “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. Includes abstract in French. gccst Banks gccst Regulation Garriott, Corey. Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2017-7 (CaOODSP)9.806221 PDF 672 KB https://publications.gc.ca/collections/collection_2017/banque-bank-canada/FB3-5-2017-7-eng.pdf