Banking regulation and market making

Research English OPEN
Cimon, David A.; Garriott, Corey;
(2017)
  • Publisher: Ottawa: Bank of Canada
  • Subject: G14 | G20 | L10 | Financial markets | Market structure and pricing | Financial system regulation and policies
    • ddc: ddc:330

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 princ... View more
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