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Financial market utilities and the challenge of just-in-time liquidity


Abstract: Financial market utilities ensure that clearing, settlement, and payments operations go smoothly. This article explores how these systems mitigate settlement risk, using precisely targeted ?just-in-time? liquidity, and discusses the risks for financial stability implied by the increasing role of just-in-time liquidity in our financial markets.

Keywords: Financial markets; Liquidity (Economics);

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Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Chicago Fed Letter

Publication Date: 2009

Issue: Nov

Order Number: 268a