BoE’s Cunliffe: era of free liquidity is over

Market participants ‘will have to pay more’ to get in and out of positions

Sir John Cunliffe
Jon Cunliffe, Bank of England

Investors should get used to tighter liquidity and higher costs, but it is not clear how much of that can be chalked up to post-crisis regulation. That was the message Jon Cunliffe, deputy governor for financial stability at the Bank of England (BoE) delivered to a UK House of Lords subcommittee yesterday.

Referring to claims from banks and their customers that new capital and leverage rules have made markets less liquid and more volatile, Cunliffe acknowledged that liquidity has suffered, but

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