Cass Questions Circuit Breakers in New Study

Credit valuation adjustment
The paper argues for illiquidity circuit breakers to work alongside price-based circuit breakers.

Co-authored by Dr Giovanni Cespa of Cass Business School and Thierry Foucault from HEC School of Management in Paris, 'Illiquidity Contagion and Market Crashes' says that existing circuit breakers will not prevent another rapid market crash due to correlative exigencies between asset classes.

Instead, the paper argues, 'liquidity breakers' are needed to mitigate wild swings in indices, operating in tandem with common price-based breakers that trigger a halt when specific limits are breached. The

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FCA declines to directly regulate market data prices

A year-long investigation by the UK regulator to determine whether competition is hindered in the wholesale data markets has concluded with its decision not to directly regulate much-maligned data pricing and licensing structures.

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