Market Liquidity

Tokenize Everything, But Can You Sell It? RWA Liquidity Challenges and the Road Ahead ArXiv ID: 2508.11651 “View on arXiv” Authors: Rischan Mafrur Abstract The tokenization of real-world assets (RWAs) promises to transform financial markets by enabling fractional ownership, global accessibility, and programmable settlement of traditionally illiquid assets such as real estate, private credit, and government bonds. While technical progress has been rapid, with over $25 billion in tokenized RWAs brought on-chain as of 2025, liquidity remains a critical bottleneck. This paper investigates the gap between tokenization and tradability, drawing on recent academic research and market data from platforms such as RWA.xyz. We document that most RWA tokens exhibit low trading volumes, long holding periods, and limited investor participation, despite their potential for 24/7 global markets. Through case studies of tokenized real estate, private credit, and tokenized treasury funds, we present empirical liquidity observations that reveal low transfer activity, limited active address counts, and minimal secondary trading for most tokenized asset classes. Next, we categorize the structural barriers to liquidity, including regulatory gating, custodial concentration, whitelisting, valuation opacity, and lack of decentralized trading venues. Finally, we propose actionable pathways to improve liquidity, ranging from hybrid market structures and collateral-based liquidity to transparency enhancements and compliance innovation. Our findings contribute to the growing discourse on digital asset market microstructure and highlight that realizing the liquidity potential of RWAs requires coordinated progress across legal, technical, and institutional domains. ...

A Regression-Based Share Market Prediction Model for Bangladesh ArXiv ID: 2507.18643 “View on arXiv” Authors: Syeda Tasnim Fabiha, Rubaiyat Jahan Mumu, Farzana Aktar, B M Mainul Hossain Abstract Share market is one of the most important sectors of economic development of a country. Everyday almost all companies issue their shares and investors buy and sell shares of these companies. Generally investors want to buy shares of the companies whose market liquidity is comparatively greater. Market liquidity depends on the average price of a share. In this paper, a thorough linear regression analysis has been performed on the stock market data of Dhaka Stock Exchange. Later, the linear model has been compared with random forest based on different metrics showing better results for random forest model. However, the amount of individual significance of different factors on the variability of stock price has been identified and explained. This paper also shows that the time series data is not capable of generating a predictive linear model for analysis. ...

Decoding OTC Government Bond Market Liquidity: An ABM Model for Market Dynamics ArXiv ID: 2501.16331 “View on arXiv” Authors: Unknown Abstract The over-the-counter (OTC) government bond markets are characterised by their bilateral trading structures, which pose unique challenges to understanding and ensuring market stability and liquidity. In this paper, we develop a bespoke ABM that simulates market-maker interactions within a stylised government bond market. The model focuses on the dynamics of liquidity and stability in the secondary trading of government bonds, particularly in concentrated markets like those found in Australia and the UK. Through this simulation, we test key hypotheses around improving market stability, focusing on the effects of agent diversity, business costs, and client base size. We demonstrate that greater agent diversity enhances market liquidity and that reducing the costs of market-making can improve overall market stability. The model offers insights into computational finance by simulating trading without price transparency, highlighting how micro-structural elements can affect macro-level market outcomes. This research contributes to the evolving field of computational finance by employing computational intelligence techniques to better understand the fundamental mechanics of government bond markets, providing actionable insights for both academics and practitioners. ...

The Impact of Designated Market Makers on Market Liquidity and Competition: A Simulation Approach ArXiv ID: 2409.16589 “View on arXiv” Authors: Unknown Abstract This paper conducts an empirical investigation into the effects of Designated Market Makers (DMMs) on key market quality indicators, such as liquidity, bid-ask spreads, and order fulfillment ratios. Through agent-based simulations, this study explores the impact of varying competition levels and incentive structures among DMMs on market dynamics. It aims to demonstrate that DMMs are crucial for enhancing market liquidity and stabilizing price spreads, thereby affirming their essential role in promoting market efficiency. Our findings confirm the impact of the number of Designated Market Makers (DMMs) and asset diversity on market liquidity. The result also suggests that an optimal level of competition among DMMs can maximize liquidity benefits while minimizing negative impacts on price discovery. Additionally, the research indicates that the benefits of increased number of DMMs diminish beyond a certain threshold, implying that excessive incentives may not further improve market quality metrics. ...

International Law on Pandemic Response: A First Stocktaking in Light of the Coronavirus Crisis ArXiv ID: ssrn-3561650 “View on arXiv” Authors: Unknown Abstract The coronavirus (SARS-CoV-2) pandemic is currently raging throughout the world. The ensuing crisis has acquired a multidimensional nature, affecting all levels Keywords: Pandemic, Crisis Management, Market Liquidity, Economic Recovery, Cross-Asset Complexity vs Empirical Score Math Complexity: 0.0/10 Empirical Rigor: 0.0/10 Quadrant: Philosophers Why: The paper is a legal analysis of international health regulations and human rights law with no mathematical formulas or empirical backtesting, focusing on theoretical and normative assessments of pandemic response frameworks. flowchart TD Goal["Research Goal: Assess International Law's adequacy in pandemic response based on coronavirus crisis."] Method["Methodology: Qualitative legal analysis of international instruments and case studies."] Inputs["Data/Inputs: WHO IHR 2005, International Health Regulations, pandemic response measures."] Process["Computational Process: Comparative analysis of legal frameworks vs. crisis management realities."] Outcome["Key Findings: Existing laws have gaps in enforcement; need for revised global governance."]