Tag: activity levels

activity levels

And Finally…

Patchy liquidity and the lack of pre-positioning cannot alone account for why we get some wild moves in markets – sometimes the liquidity providers should wear some of the blame. How else do we explain spreads in Cable that are almost as wide as the entire range this decade?
The lack of incentive to take any risk doesn’t help, but what justification can a market maker have for quoting 50 big figures wide? At that spread, they might as well pull out of the market altogether.