Market Liquidity: One door closes, another one opens?

  • Saurabh Rastogi, Special Advisor, Global Risk Institute, Toronto, Canada
A closeup photograph of coins covered in beads of water.


It has become almost mainstream thinking that the current state of market liquidity is a significant negative development in the global capital markets since the Global Financial Crisis (GFC). It is the Global Risk Institute’s (GRI) perspective that market participants need to not only manage this outcome but, more importantly, look for opportunities that this environment is likely to provide. Market liquidity is in a transition and the capital markets are undergoing a significant transformation that is likely to manifest itself over the next ten years. Like any transition, this one too would have its share of challenges and yet, provide many opportunities to the participants.