The Eleventh Annual Conference of the Paul Woolley Centre for the Study of Capital Market Dysfunctionality in collaboration with the Bank for International Settlements took place at the London School of Economics on 7-8 June 2018.

Research at the Paul Woolley Centre aims at understanding the workings of capital markets and the social efficiency of allocations these markets achieve, with an emphasis on the role of financial institutions in influencing prices and allocations.

The annual Paul Woolley Centre Conference provides an excellent opportunity to disseminate research and stimulate new ideas by bringing together leading researchers working on the broad themes of contracts and organisational structure, market frictions and asset prices, allocative efficiency and the macro-economy, and policy implications.

This year’s conference was held in collaboration with the Bank for International Settlements (BIS). The “BIS session” on Liquidity and Market Functioning, explored questions such as (a) how do market and funding liquidity interact, (b) whether there are anomalies that may impair the proper functioning of markets and pose risks to financial stability, and (c) what drives the risk taking of institutional investors, all of which intersect with the Centre’s research agenda, with special emphasis on the policy angles.

The programme can be downloaded here.

Slides and papers are available for download.

Monopoly without a Monopolist: Economics of the Bitcoin Payment System
Authors: Gur Huberman, Jacob D. Leshno, Ciamac Moallemi
Slides Paper
Discussant: Igor Makarov (Slides)

Incentive constrained risk-sharing, segmentation and asset pricing
Authors: Bruno Biais, Johan Hombert and Pierre Olivier Weill 
Slides Paper
Discussant: Adriano Rampini (Slides)

Innovation and Informed Trading: Evidence from Industry ETFs
Authors: Shiyang Huang, Maureen O’Hara, Zhuo (Joe) Zhong
Slides Paper
Discussant: Li An (Slides)

Insurers as asset managers and systemic risk
Authors: Andrew Ellul, Anastasia Kartasheva, Pab Jotikasthira, Christian Lundblad, Wolf Wagner
Slides Paper
Discussant: Christian Julliard (Slides)

Strategic Complexity
Authors: Vladimir Asriyan, Dana Foarta, Victoria Vanasco
Discussant: Andrey Malenko (Slides)

The Anatomy of the Transmission of Macroprudential Policies
Authors: Viral Acharya, Katharina Bergant, Matteo Crosignani, Tim Eisert, Fergal McCann
Slides | Paper
Discussant: Tim Landvoigt (Slides)

The fire-sale channels of universal banks in the European sovereign debt crisis
Authors: Giulio Bagattini, Falko Fecht, Patrick Weber
Slides Paper
Discussant: Tarun Ramadorai (Slides)

The Forced Safety Effect: How Higher Capital Requirements Can Increase Bank Lending 
Authors: Saleem Bahaj and Frederic Malherbe
Slides | Paper
Discussant: Marcus Opp (Slides)

Organising Committee

Georgy Chabakauri (LSE), Thummim Cho (LSE), Benjamin Cohen (BIS), Amil Dasgupta (LSE), Peter Kondor (LSE), Dong Lou (LSE), Igor Makarov (LSE), Martin Oehmke (LSE), Gianpaolo Parise (BIS), Christopher Polk (LSE), Hyun Song Shin (BIS), Dimitri Vayanos (LSE), Michela Verardo (LSE), Kathy Yuan (LSE).

For enquiries, please email