Could all-to-all trading improve liquidity in the Government of Canada bond market?

Jabir Sandhu and Rishi Vala

No 2024-17, Staff Analytical Notes from Bank of Canada

Abstract: We find that on any given day, nearly half of Government of Canada bond transactions by clients of dealers can be offset with other clients, including during the turmoil in March 2020. Our results show that under certain conditions clients could potentially trade directly with each other and are a step towards understanding the relevance of broader all-to-all trading in the Government of Canada bond market.

Keywords: Coronavirus disease (COVID-19); Financial institutions; Financial markets; Financial stability; Market structure and pricing (search for similar items in EconPapers)
JEL-codes: D4 D47 D5 D53 G0 G01 G1 G12 G13 G14 G2 G21 G23 (search for similar items in EconPapers)
Date: 2024-07
New Economics Papers: this item is included in nep-ifn and nep-mst
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