#illiquidity

Regulation and illiquidity are ‘major bottlenecks’ for Indian crypto market Lau: Absolutely. Our pleasure indeed. Okay, let’s talk about India right now. You’re based where? In Mumbai?

Volatility, Illiquidity Threaten BSV’s Newfound Position Volatility in bitcoin SV (BSV) is raising concerns about the resilience and stability of the world’s fifth-largest cryptocurrency by market capitalization, as ranked by CoinMarketCap.

So, doh. This is the problem... And btw “direct” listings are not a new idea, the second (in addition to incentivising market makers) main problem imo is our one-size-fits-all continuous order book stock exchanges. Great for Dow/S&P component companies (and their investors, traders, etc.) but awful for small, relatively illiquid stocks.  IMO, we need exchanges to go “back-to-the-future” with a menu of trading structures including ones with periodic “fixings” to set prices. But even this type of market structure still needs market-makers or companies that are cash rich enough to support their share price when the inevitable air pockets arise: you don’t want someone with an order to sell 1000 shares just to pay for their vacation to take 20% off your market cap just because no one happened to be paying attention on the bid side. This is very real, have seen it happen a number of times in real life...  ie the reason such markets have not taken off, is that no one has (yet) figured out how to make money on them either as a market maker or an exchange. Not sure it’s a solvable problem.

The German Council of Economic Advisers has mooted an interesting proposal to deal with excessive public debts in the Eurozone (Andritzky et al. 2016a, 2016b). This is a major remaining gap in the Eurozone, which governments would prefer to keep ignoring. Although the authors should be commended for bringing it up, their proposal suffers from some inherent weaknesses. The proposal builds on logical errors and embeds well-established ideas in a setup that suffers from serious limitations. It also neglects alternative strategies that favour targeting large debts as soon as possible.

APAC Financial Markets • Fed governor says markets are in transition A top Federal Reserve official has dismissed claims that liquidity is evaporating in over-the-counter derivatives markets. Daniel Tarullo, a member of the Board of Governors of the Federal Reserve System, said he does not see a problem with http://wp.me/p62aKF-7Uu #FED, #FixedIncome, #Illiquidity, #Liquidity, #OTCMarkets, #Regulation, #Swaps #RegulatoryIssues