Liquidity Things, What Is
Straight over processing with banks fluidity. The ECN standard allows users to sell on the global liquidity of world - class banks and qualified financial organisations.
' BofA Merrill Lynch joins a growing liquidity pool on FENICS Trader, including BNP Paribas, Commonwealth Bank of Australia, Credit Suisse, UBS as well as Unicredit Bank AG.
Quantities are weighted to incentivise Market - Making in products with typically below liquidity.
True, high liquidity ensures that trade takes place 24 hours a day as well as prices on screens are public information. However, the process of rate or price judgment is far from clear. Instead of consistent beliefs of demand and provide, the sell is driven by rumours and anticipations, the operation of individual players is anonymous as well as there is a staggering variety of competing trading methodologies, reasons and beliefs. Yes and no, depending on the kind of peril, on leverage and on institutional reasons such as the level of standardization, availability of insures and clearing and settlement measures. On the one hand, foreign exchange sells are comparatively straightforward. There is an agreement to swop cash flows in 2 various foreign exchanges in a definite style on a ascertained date.
Currently, a latest dimension has emerged from expectation of aggressive CRR chops from large PSU Banks in exchange for of rate cut action.