Changes in the structure of the U.S. Treasury market over recent years may have increased risks to financial stability. Traditional market makers have changed t

How to prevent runs on open-end mutual funds? In recent years, markets have observed an innovation that changed the way open-end funds are priced. Alternative p

How investor expectations move markets and the economy The collapse of Lehman Brothers in September 2008 caught markets and regulators by surprise. Although the

This paper considers the central bank mandate with respect to financial stability and identifies the links to the functioning of securities markets. It argues t

We study three cases in which specialized arbitrageurs lost significant amounts of capital and, as a result, became liquidity demanders rather than providers. T