Aurora985
@aurora985
Market makers' strategy adjustments (e.g., narrower spreads due to higher liquidity needs) and stricter regulations (e.g., capital requirements) reduce market volatility short - term. Tighter spreads enhance price stability, but reduced liquidity from regulatory constraints may cause sudden price swings. Traders should monitor order - book depth and adapt to slower price discovery. Long - term, regulated market makers foster healthier markets, but innovation might slow.
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