November 14, 2016
Siege Banque de France, Paris
The Banque de France and Toulouse School of Economics (TSE) will organise a one day conference on “Market liquidity and regulation”. This joint conference will take place in Paris on November, 14, 2016. Liquid financial markets are an important component of a robust and growth-enhancing financial system. Well-developed liquid markets for securities—equity and bonds—serve as a cost-efficient source of market-based funding for corporates investment, complementing bank-based funding. Market liquidity also matters for financial stability considerations, e.g. sudden declines in liquidity in some key markets may propagate financial stress to other markets segments and financial institutions. However, market liquidity has several dimensions, and is driven in part by the complex interaction between technological advances and regulatory developments—financial market regulation as well as bank regulation, which may affect the perceived cost of liquidity provision (market making). The conference aims to shed light on current developments of liquidity in different markets—e.g. equity, bonds, repo—, how they relate to technological and regulatory factors, and the concerns that they raise for central banks and public authorities.