Market Liquidity and Competition Among Designated Market Makers

The authors thank Patrice Fontaine, the BEDOFIH team, and EUROFIDAI for providing them with data and funding and advising them on institutional details. The authors are grateful to Davide Tomio and Jun Uno for detailed discussions throughout the project. The authors also thank Michela Altieri, Thierry Foucault, Ravi Jagannathan, Andrei Kirilenko, Robert Korajczyk, Albert J. Menkveld, Satchit Sagade, Michael Schneider, and Christian Westheide, seminar participants at the Norwegian School of Economics (NHH), the Kellogg School of Management, the Université de Lille, the University of Stavanger, NYU Stern, and the Indian School of Business, and participants at the American Finance Association 2021, the 3rd World Symposium on Investment Research, the Financial Management Association 2020, the CEPR Imperial Plato Market Innovation (MI3) conference, the Northern Finance Association 2019, and the Paris Finance Meeting 2019 for helpful comments. Part of this work was carried out when Mario Bellia was employed at the Research Center SAFE. The views expressed are purely those of the authors and may not under any circumstances be regarded as stating an official position of the European Commission.