We read a lot of academic papers but seem to have missed this one from last April titled “High Frequency Trading and Market Stability”   written by Dion Bongaerts and Mark Van Achter from the Rotterdam School of Management, Erasmus University in the Netherlands.  The reason why we caught this paper now is because it was just awarded the Joseph de la Vega Prize 2015 for an outstanding research paper related to the securities markets in Europe.  The paper tackles the increasingly popular subject of the how high frequency trading affects liquidity .  We thought it would be worthwhile to take a closer look at this award winning (more…)


A little over a week ago, I read an article on Bloomberg by Matt Levine titled People Are Worried About Bond Market Liquidity. (I read Matt Levine regularly, despite my tendency to disagree with much of his flippancy; frankly he is the best financial writer in media). The article pointed out Pimco’s worrying about Treasury Market Flash Crashes:


“The re-regulated, better capitalized global banking system allocates little of its balance sheet to making markets, resulting in greater likelihood of flash crashes, air pockets and trading volatility.”


And Levine argues that the concern is much ado about nothing:


“People hate flash crashes, (more…)