Theory on high-frequency traders (HFTs) predicts that market liquidity for a security decreases
in the number of HFTs trading the security. We test this prediction by studying a new …

We model how securities dealers respond to regulations on leverage, position, and liquidity
such as those imposed by the Basel III framework. The dealers respond by endogenously …

Fixed-income markets were disrupted at the beginning of the COVID-19 crisis. As whole
industries temporarily shut down, businesses and households ran down their savings or needed …

This is the first of the Financial Markets Department's descriptions of Canadian financial
industrial organization. The document discusses the organization of the repurchase-agreement (…

Predatory trading can discourage investors from gathering information and trading on it.
However, using 11 years of equity trading data, we do not find evidence that informed investors …

Using data on Canadian bond futures, we examine how high-frequency traders (HFTs) interact
with institutions building large positions. In contrast to recent findings, we find HFTs in the …

Financial market participants enter securities-financing transactions (SFTs) to obtain cash or
securities using either of those instruments as collateral. These transactions share several …

In August 2012, the New York Stock Exchange launched the Retail Liquidity Program (RLP),
a trading facility that enables participating organizations to quote dark limit orders …

This discussion paper is the third in the Financial Markets Department’s series on the structure
of Canadian financial markets. These papers are called “ecologies” because they study …

… Corey Garriott1, Vincent van Kervel2, and Marius Zoican3 …