INDUSTRY

Changes in Market-Making: Impact of Technology and Regulation (Whitepaper)

June 18, 2018

Each year, Banque de France publishes its Financial Stability Review, a compilation of articles by academics, experts, and financial industry leaders looking at the impact of recent international developments on financial stability. Our own Peng Zhao, CEO of Citadel Securities, contributed a piece to the 2018 Financial Stability Review that outlines how technological innovation and certain forward-thinking regulatory reforms have the demonstrated potential to improve pricing and liquidity by unlocking greater competition in the fixed income, currency, and commodity (FICC) markets.

Read “Changes in Market-Making: Impact of Technology and Regulation” to better understand:

  • The role and types of market makers in FICC markets (section 1)
  • The potential for greater competition to optimize market making in the financial system (section 2)
  • The impact of technological innovation on competition in FICC markets (section 3)
  • Regulatory reforms that improve competition, such as:
    • Expanding the use of, and access to, central clearing and settlement systems
    • Trading on multilateral trading venues that provide non-discriminatory access to all market participants
    • Introducing greater transparency that eliminates information asymmetries

Click here to read the article.