{"id":5553,"date":"2009-02-19T12:13:45","date_gmt":"2009-02-19T16:13:45","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=5553"},"modified":"2009-02-19T12:13:45","modified_gmt":"2009-02-19T16:13:45","slug":"bank-of-canada-releases-winter-08-09-review","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=5553","title":{"rendered":"Bank of Canada Releases Winter '08-'09 Review"},"content":{"rendered":"

The Bank of Canada has announced<\/a> the release of the Bank of Canada Review of Winter 2008-2009.<\/p>\n

Of most interest – to me! – was a paper on the value of information in the FX market, The Role of Dealers in Providing Interday Liquidity in the Canadian-Dollar Market<\/a> by Chris D’Souza, which concluded:<\/p>\n

Overall, results suggest that the relationship between the positions of commercial clients and market-makers, and the role played by dealers in interday liquidity provision, has been understated. There is considerable evidence that not all customer trades are equal. In particular, market-makers are quick to provide liquidity to [Foreign Domiciled] customers, possibly in an attempt to capture any fundamental information contained in these trades. Over time, dealers will off-load their positions to commercial clients as the information becomes stale, or as
\nthe risks associated with holding these undesired balances becomes too costly.<\/p><\/blockquote>\n

Other papers were:<\/p>\n