Authored on: Jan 25, 2012
Download The paper deals with criticality of adherence to good liquidity management practices by broker dealers. Liquidity is essential to the viability of broker dealer firms. Any risk posed to the timely and cost-effective supply of liquidity can be disruptive in many ways. Therefore, it is crucial for broker dealers to devise and implement appropriate liquidity risk management practices and strive to create a risk sensitive culture across their organization.