Central banks are adapting to “major developments” in markets, as trading speeds up and access to data comes to define competitive advantage, a new report finds.
The work by the Bank for International Settlements’ Markets Committee is designed to help central banks cope with the rise of what the authors call “fast-paced electronic markets”, or FPMs.
The report finds trading is increasingly fragmented across venues, with much faster information flows; that liquidity provision has become concent
