Mondo Visione  Oct 1  Comment 
SIFMA President and CEO Kenneth E. Bentsen, Jr. delivered opening remarks and introduced the Federal Reserve Bank of New York’s President and CEO William C. Dudley at the SIFMA Liquidity Forum in New York.
Wall Street Journal  Sep 30  Comment 
The New York Fed president pushed back against assertions that new rules are damaging bond-market trading conditions, but said regulators should be open to altering rules if that could address investors’ concerns without sacrificing the safety...
Yahoo  Sep 30  Comment 
A top Federal Reserve official on Wednesday largely dismissed concerns that bond market liquidity has sharply diminished following U.S. regulatory reforms, saying the rise of high-frequency trading probably plays a bigger role in any changes....
Financial Times  Sep 29  Comment 
Aggressive central bank policies may have masked deterioration in trading
Mondo Visione  Sep 29  Comment 
Interactive Data, a leading provider of fixed-income evaluated pricing, today announced the launch of its Liquidity Indicators Service.  The innovative service leverages the same award-winning, fixed-income evaluated pricing and reference data...


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Liquidity is defined as the ability to trade large size quickly at a low cost. It is one of the most important characteristics of a market. A liquid market allows traders to implement their strategies cheaply, normally with a limited bid/ask spread. A liquid market is characterized by high volume. It is generally less volatile than an illiquid market.

Usually, you can refer to three dimensions of liquidity - time, size and cost:

• “Immediacy” refers to how quickly you can execute a trade of a given size at a given cost.

• Width refers to the cost of executing a trade of a given size, including commissions.

• Depth refers to the size of a trade that can be executed at a given cost. Width and depth are very strictly related.

A liquid market is a market where you can trade large size quickly at low cost. Liquidity refers to how quickly you can convert your assets into cash. [1] Liquidation is the conversion of assets into cash by an Investor getting rid of a position in a particular type of security. [2]

For example, a portfolio manager might decide to liquidate a position in a stock by selling all the shares of that stock held in the portfolio. [3]

1610s, from liquidus. [1] Liquid Financial sense of "capable of being converted to cash" is first recorded 1818. [2]


  1. Stock Investing for Dummies‬ By Paul Mladjenovic pg22 ISBN-10: 0470401141
  2. Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott Accounting Professor ISBN-10: 0618176519 pg 212
  3. Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. ISBN-10: 0618176519 pg212


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