In the Margins

Fed official downplays liquidity concerns

September 30, 2015

By Reuters

William Dudley, president of the Federal Reserve Bank of New York, said Wednesday that one-off "liquidity events" in which trading of Treasury and corporate bonds becomes significantly more expensive and difficult may reflect the complex interactions of algorithmic trading strategies. He largely dismissed concerns that bond market liquidity has diminished sharply following regulatory reforms, saying high-frequency trading probably is more to blame for market changes. "The evidence to date that liquidity has diminished markedly is, at best, mixed," Dudley said at a securities industry event. Read the original story from Reuters

 

 

Most Read

10 Things
10 Ways…to improve fund board diversity

Mutual fund directors are increasingly interested in enhancing diversity on their boards. The following practical tips on improving board diversity are derived from discussions with directors, ...