Changes in the Returns to Market Making
Since the financial crisis, major U.S. banking institutions have increased their capital ratios in response to tighter capital requirements.
What’s Driving Dealer Balance Sheet Stagnation?
Tobias Adrian, Michael J. Fleming, Daniel Stackman, and Erik Vogt Fifth in a five-part series Securities brokers and dealers (“dealers”) engage in the business of trading securities on behalf of their customers and for their own account, and use their balance sheets primarily for trading operations, particularly for market making. Total financial assets of dealers […]