Equity Market Quality: Do CDS, Options and Bond Markets Play a Role?

2012 ◽  
Author(s):  
Ekkehart Boehmer ◽  
Sudheer Chava ◽  
Heather Tookes
Keyword(s):  
Equity Market ◽  
Market Quality ◽  
Bond Markets

Dark Trading and Equity Market Quality

2014 ◽  
Vol 70 (6) ◽  
pp. 33-48 ◽  
Author(s):  
Rhodri Preece ◽  
Sviatoslav Rosov
Keyword(s):  
Equity Market ◽  
Market Quality

scholarly journals The effect of fragmentation in trading on market quality in the UK equity market

2013 ◽  
Author(s):  
Michael Vogt ◽  
Lena Boneva (Körber) ◽  
Oliver Linton
Keyword(s):  
Equity Market ◽  
Market Quality ◽  
The Uk

Captial Structure, Derivatives and Equity Market Quality

2010 ◽  
Author(s):  
Ekkehart Boehmer ◽  
Sudheer Chava ◽  
Heather Tookes
Keyword(s):  
Equity Market ◽  
Market Quality

Banning Cassandra from the Market? An Empirical Analysis of Short-Selling Bans during the Covid-19 Crisis

2020 ◽  
Vol 17 (3-4) ◽  
pp. 386-418 ◽  
Author(s):  
Gianfranco Siciliano ◽  
Marco Ventoruzzo
Keyword(s):  
Financial Markets ◽  
Information Asymmetry ◽  
Stock Markets ◽  
Abnormal Returns ◽  
Equity Market ◽  
Short Selling ◽  
Market Quality ◽  
Policy Goals ◽  
The World ◽  
European Stock Markets

During the recent COVID-19 pandemic crisis, stock markets around the world have witnessed an abrupt decline in security prices and an unprecedented increase in security volatility. In response to a week of financial turmoil on the main European stock markets, some market regulators in Europe, including France, Austria, Italy, Spain, Greece, and Belgium, passed temporary short-selling bans in an attempt to stop downward speculative pressures on the equity market and stabilize and maintain investors’ confidence. This paper examines the effects of these short-selling bans on market quality during the recent pandemic caused by the spread of COVID-19. Our results suggest that during the crisis, banned stocks had higher information asymmetry, lower liquidity, and lower abnormal returns compared with non-banned stocks. These findings confirm prior theoretical arguments and empirical evidence in other settings that short-selling bans are not effective in stabilizing financial markets during periods of heightened uncertainty. In contrast, they appear to undermine the policy goals market regulators intended to promote.

scholarly journals The Effect of Fragmentation in Trading on Market Quality in the UK Equity Market

2015 ◽  
Vol 31 (1) ◽  
pp. 192-213 ◽  
Author(s):  
Lena Boneva ◽  
Oliver Linton ◽  
Michael Vogt
Keyword(s):  
Equity Market ◽  
Market Quality ◽  
The Uk

scholarly journals Related Securities and Equity Market Quality: The Case of CDS

2015 ◽  
Vol 50 (3) ◽  
pp. 509-541 ◽  
Author(s):  
Ekkehart Boehmer ◽  
Sudheer Chava ◽  
Heather E. Tookes
Keyword(s):  
Credit Default Swap ◽  
Equity Markets ◽  
Quality Measures ◽  
Equity Market ◽  
Market Quality ◽  
Equity Prices ◽  
Information Spillovers ◽  
Positive Effects ◽  
Credit Default ◽  
Default Swap

AbstractWe document that equity markets become less liquid and equity prices become less efficient when markets for single-name credit default swap (CDS) contracts emerge. This finding is robust across a variety of market quality measures. We analyze the potential mechanisms driving this result and find evidence consistent with negative trader-driven information spillovers that result from the introduction of CDS. These spillovers greatly outweigh the potentially positive effects associated with completing markets (e.g., CDS markets increase hedging opportunities) when firms and their equity markets are in “bad” states. In “good” states, we find some evidence that CDS markets can be beneficial.

Attention will turn to policy scope to fight recession

2019 ◽  
Keyword(s):  
Federal Reserve ◽  
Equity Markets ◽  
Central Banks ◽  
Equity Market ◽  
Bond Markets ◽  
Content Type ◽  
China Trade ◽  
The Us ◽  
Equity Funds ◽  
Global Equity Markets

Significance The dovish U-turns by the US Federal Reserve (Fed) and the ECB, which were withdrawing monetary stimulus as recently as end-2018, are accentuating concerns that the leading central banks lack the firepower to fight the next recession. Creating confusion, global equity markets are surging but bond markets are growing more pessimistic. Impacts The Chinese equity market is surging as investors anticipate some form of US-China trade deal, but any boost is likely to be temporary. US equities have rebounded this year, but the outflows from US equity funds that began in October will continue and may rise amid anxiety. Chinese growth was slowing even before the tariffs and worries are rising that this, more than trade, will increasingly hit world growth.

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