Still, regulators continue to warn of liquidity challenges spurred by the ETF revolution.
Among the latest is the European Systemic Risk Board. In a report this month, it warned that market stress could “create first-mover advantages if, for instance, primary markets offer stale prices, while the underlying markets are turning illiquid.”
The result? “Investors may expect there to be greater liquidity than that available during times of stress,” the report concluded.
This article provided by Bloomberg News.