Trading and Liquidity with Limited Cognition

We study the reaction of financial markets to aggregate liquidity shocks when traders face cognition limits. While each financial institution recovers from the shock at a random time, the trader representing the institution observes this recovery with a delay, reecting the time it takes to collect and process information about positions, counterparties and risk exposure. Cognition limits lengthen the recovery process. They also imply that traders who find their institution has not yet recovered from the shock place market sell orders, and then progressively buy back at relatively low prices, while simultaneously placing limit orders to sell later when the price will have recovered. This generates round trip trades, which raise trading volume. We compare the case where algorithms enable traders to implement this strategy to that where traders can only place orders when they have completed their information processing task

Trading and Liquidity with Limited Cognition

We study the reaction of financial markets to aggregate liquidity shocks when traders face cognition limits. While each financial institution recovers from the shock at a random time, the trader representing the institution observes this recovery with a delay, reecting the time it takes to collect and process information about positions, counterparties and risk exposure. Cognition limits lengthen the recovery process. They also imply that traders who find their institution has not yet recovered from the shock place market sell orders, and then progressively buy back at relatively low prices, while simultaneously placing limit orders to sell later when the price will have recovered. This generates round trip trades, which raise trading volume. We compare the case where algorithms enable traders to implement this strategy to that where traders can only place orders when they have completed their information processing task

Trading and Liquidity with Limited Cognition

We study the reaction of financial markets to aggregate liquidity shocks when traders face cognition limits. While each financial institution recovers from the shock at a random time, the trader representing the institution observes this recovery with a delay reflecting the time it takes to collect and process information about positions, counterparties and risk exposure. Cognition limits lengthen the market price recovery. They also imply that traders who find that their institution has not yet recovered from the shock place market sell orders, and then progressively buy back at relatively low prices, while simultaneously placing limit orders to sell later when the price will have recovered. This generates round trip trades, which raise trading volume. We compare the case where algorithms enable traders to implement this strategy to that where traders can place orders only when they have completed their information processing task.

R. J. Charleston, Roman Pottery

Hombert Pierre. R. J. Charleston, Roman Pottery. In: L'antiquité classique, Tome 25, fasc. 2, 1956. pp. 570-571

Marc-R. Sauter, Les industries moustériennes et aurignaciennes de la station paléolithique du « Bonhomme » (Vallon des Rebières, Dordogne)

Hombert Pierre. Marc-R. Sauter, Les industries moustériennes et aurignaciennes de la station paléolithique du « Bonhomme » (Vallon des Rebières, Dordogne). In: L'antiquité classique, Tome 16, fasc. 1, 1947. p. 215

Opuscula Archaeologica. Vol. VI

Hombert Pierre. Opuscula Archaeologica. Vol. VI. In: L'antiquité classique, Tome 22, fasc. 2, 1953. pp. 545-547

Opuscula Archaeologica. Vol. III, edidit Institutum Romanum Regni Sueciae

Hombert Pierre. Opuscula Archaeologica. Vol. III, edidit Institutum Romanum Regni Sueciae. In: L'antiquité classique, Tome 15, fasc. 2, 1946. pp. 387-391

F. Vaes et J. Mertens, La céramique gallo-romaine en terre sigillée d'Elewijt (Belgique)

Hombert Pierre. F. Vaes et J. Mertens, La céramique gallo-romaine en terre sigillée d'Elewijt (Belgique). In: L'antiquité classique, Tome 23, fasc. 1, 1954. pp. 289-290

Memoirs of the American Academy in Rome. Volume XXIV

Hombert Pierre. Memoirs of the American Academy in Rome. Volume XXIV. In: L'antiquité classique, Tome 25, fasc. 2, 1956. pp. 595-596

J. E. A. Th. Bogaers, De Gallo- Romeinse Tempels te Elst in de Over-Betuwe. The Romano-Celtic Temples at Elst in the Over-Betuwe District

Hombert Pierre. J. E. A. Th. Bogaers, De Gallo- Romeinse Tempels te Elst in de Over-Betuwe. The Romano-Celtic Temples at Elst in the Over-Betuwe District. In: L'antiquité classique, Tome 26, fasc. 1, 1957. pp. 278-280