Discussion Paper
The 2022 Spike in Corporate Security Settlement Fails
Abstract: Settlement fails in corporate securities increased sharply in 2022, reaching levels not seen since the 2007-09 financial crisis. As a fraction of trading volume, fails that involve primary dealers reached an all-time high in the week of March 23, 2022. In this post, we investigate the 2022 spike in settlement fails for corporate securities and discuss potential drivers for this increase, including trading volume, corporate issuance, fails in bond ETFs, and operational problems.
Keywords: settlement fails; corporate securities; primary dealers;
JEL Classification: G1;
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https://libertystreeteconomics.newyorkfed.org/2023/04/the-2022-spike-in-corporate-security-settlement-fails/
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Bibliographic Information
Provider: Federal Reserve Bank of New York
Part of Series: Liberty Street Economics
Publication Date: 2023-04-10
Number: 20230410