Liquidity management in financial markets.

Summary This research proposes an original approach to liquidity, based on three themes. The first theme concerns the composition and measurement of liquidity. What are its main components? Among those known and already cited in the literature, can a choice be made that provides a better assessment of liquidity? The second theme deals with liquidity management. Is it possible to manage liquidity? Four management tools are described: share buybacks, market making, pricing and the implementation of a recovery plan. The latter strategy is illustrated by the example of the Euro Notional contract. The questions posed in the third part of this paper stem from a systematic view of liquidity. Are there common determinants of liquidity, i.e. events and variables that vary the liquidity of all securities simultaneously? And what are they?