The Role of Time-Critical Liquidity in Financial Markets

17 Pages Posted: 29 Jan 2014

See all articles by David A. Marshall

David A. Marshall

Federal Reserve Bank of Chicago; University of Chicago - Booth School of Business

Robert S. Steigerwald

Federal Reserve Bank of Chicago

Date Written: July 1, 2013

Abstract

This article examines the growing dependence of global financial markets on time-critical liquidity in managing settlement risk and its implications for financial regulation.

Keywords: Liquidity, Clearing and Settlement Systems, Payment Systems, Financial Contracts, Financial Markets, Risk Management, Settlement Risk, Delivery versus Payment, Real-Time Gross Settlement, Payment versus Payment, Foreign Exchange, Securities, Derivatives, Central Counterparties, Collateral

JEL Classification: G10, H3, K2

Suggested Citation

Marshall, David Aaron and Steigerwald, Robert S., The Role of Time-Critical Liquidity in Financial Markets (July 1, 2013). Economic Perspectives, Vol. 37, No. 2, 2013, Available at SSRN: https://ssrn.com/abstract=2386107

David Aaron Marshall (Contact Author)

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604-1413
United States
312-322-5111 (Phone)

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Robert S. Steigerwald

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States
(312) 322-2414 (Phone)
(312) 322-5943 (Fax)

HOME PAGE: http://www.chicagofed.org/financial_markets_group/fmg_preview.cfm?autID=427

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