Liquidity

The European Central Bank, which has announced strong intervention on the markets, will buy Italian and Spanish debt according to a source close to the bank

What the package has done is help to create a fire-break to avoid the spread of contagion throughout the eurozone.

As was seen during the stress tests carried out in July 2010, the latest ones published by the European Banking Authority on the 15th of July 2011 do not include a proper measure of market systemic risk. This hinders their credibility.

The SEC is considering whether new requirements should be imposed on high frequency trading and what benefits market makers should get for meeting those obligations. In the meantime the CFTC moves forward to protect swaps user margin from peer default.

The introduction of new liquidity ratios could undermine banking core business