Automated market-makers create market integrity and stability risks – research
Canadian study warns of real economy impact, depending on level of interconnection
Automated market-makers (AMMs) create market integrity and financial stability risks “through unique and complex channels”, researchers at the Bank of Canada and Ontario Securities Commission find.
AMMs are the most popular decentralised exchange approach used for the pricing and trading of crypto assets within decentralised finance (DeFI). They often provide custody and investment services to liquidity providers and liquidity and settlement for traders, write the authors.
Users of the AMM put
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe
You are currently unable to print this content. Please contact customer services - www.fx-markets.com/static/contact-us to find out more.
You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@fx-markets.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@fx-markets.com
More on Trading
Bilateral streaming relationships set to grow, say LPs
FX Markets Europe: More clients are embracing APIs to access bank liquidity directly
Buy-siders call for FX options workflow overhaul
FX Markets Europe: Traders say electronification of FX options is still lagging
FX options market eyes Trump inauguration trades
FX Markets Europe: Traders turn to short-dated plays on cabinet picks and early tariff actions
Higher rates see corporates reassess FX structured products
Treasurers are getting a taste for dual currency notes and structured forwards
Cross-currency letters of credit gaining popularity in Asia
Divergent central bank policies see CNH LCs increasingly used to cover USD invoices
SocGen makes Americas FX push with string of new hires
French bank eyes US and Latin American real money clients
BNPP ups efforts to weed out skew sniffers
French bank deploys skew sensitivity algo to help identify predatory behaviour
Quants dive into FX fixing windows debate
Longer fixing windows benefit clients, but predicting how dealers will respond is tough
