So I would say we see Marie ready to start with the first paper, and indeed the first paper is on non-banks and possible access to the LOLR, which I had highlighted as one of the key research and policy questions on the table. So Marie, the floor is yours. You have 30 minutes. Hi, good morning and good afternoon everybody. Let me share my screen. Thank you very much for putting our paper on the program. It's really great pleasure to be a part of Money Market Conference, our flagship events on Money Market. We are going to talk about non-banks and the access to LOLR and we're going to look in particular on what happened to the investment fund sector during the March 2020 liquidity crisis. This is joint work with my colleague from the ECB, Johannes Breckenfelder and former ECB colleague, Nicholas Grimm. And I should say that the views expressed are solely our own and do not necessarily represent the views of the ECB or the euro system. I think it's needless to argue in this audience that non-banks are becoming increasingly important in the financial system. In the euro area, their assets doubled over the last decade and they also became a significant source of funding for non-financial corporations constituting about 20 percent of total credit. As the importance of non-banks grew, so did concerns that the buildup of risk in non-banks can adversely affect financial stability and monetary policy transmission. And I think it's fair to say what happened in March 2020 gave some support to these concerns whereby we witnessed an unprecedented liquidity crisis in the investment fund sector. There were large redemption, so high debt redemption risks, margin calls, hidden investment funds and all that put liquidity strains on this sector. As investment funds faced the liquidity crisis, the obvious question came up, do they need access to the land of last resort? For example, do funds need access to central bank liquidity facilities or should their shares be eligible for central bank asset purchases? So with this work today, we want to provide an input into these discussions. We will definitely not provide a full answer, but we will provide hopefully an input to think about the cost-benefit analysis of this question of whether non-banks should have access to the land of last resort. Let me start by showing you one aspect of this liquidity crisis of March 2020. And here we are zooming in on the runs experienced by the Euro area mutual funds. The chart here illustrates aggregate net fund flows in percent of total net assets between January 2020 and June 2020. So when you see positive bars, it means that inflows in this mutual funds, we are looking here at investment grade investment funds, are higher than the outflows. And when you see large negative bars, it means that outflows outweigh the inflows. So what you see is at the beginning of March, there has started this large outflows of funds in the mutual funds of investment grade. And these outflows reached the peak about mid-March, with outflows being about minus point 5% of TNA. And then the outflows slowly diminished and basically there were no more outflows by the end of March. With the vertical bars here, we illustrate some of the events. So there was the onset of this liquidity crisis in the beginning of March. Then the middle vertical bar here illustrates the announcement of the PEP, the pandemic emergency purchase program that was announced on March 18. And the last vertical bar signifies the start of purchases under the PEP on March 26, 2020. These are some of the events we will explore in our analysis, but you see how they line up nicely to some of the developments in these net flows of in Euro area mutual funds sector. Now, these outflows were in March 2020 were by no means confined to the Euro area. In fact, exceptionally large outflows were also documented for US want mutual funds, for example, in the work by Palato et al. And as mutual funds faced outflows, they needed to get liquidity, so they sold assets. And this indeed put strains on broader financial markets as has been documented by a couple of recent papers, including a very nice paper by, by our discussing. So this is sort of to give you an idea of the run phenomenon that mutual funds experienced in March 2020. What we also document is that funds faced a dry up in the repo markets. And this is a chart to illustrate this dry up. It shows you new bank lending to funds in billions of euros between February and April of 2020. So this is bank lending to the investment fund sector in terms of new transactions. And what we see is that bank cash lending to investment funds declined by 50% between February and March 2020, going from about 30 billion a day to 15 billion a day by the end of March. And again, with this vertical bars, we will straight some of the interesting events that we will be looking at in our analysis. The first vertical bar is March 12th, where Bridge LTROs, a special pandemic tailored liquidity providing operations to banks were announced. The middle bar is the settlement of the first such operation on March 18, that is again a PEP that was announced on March 18. And the last vertical bar is the March 25th, when the second Bridge LTRO was settled. There was also a settlement of a large targeted LTRO operation. And then PEP purchases actually started on March 26. So again, some of the events we will be looking at in our analysis. So what are we going to do in this paper? We are going to analyze this March 2020 crisis to assess the impact of two interventions. First, we are going to look at the impact of central bank asset purchases under the pandemic emergency purchase program, the PEP. And the mechanism we have in mind in terms of how this particular central bank intervention could have helped the strains in the investment fund sector is that it could have attenuated fire sale dynamic in financial markets, supported market prices of assets held by funds and therefore improved fund performance and helped attenuate fund outflows. The second central bank intervention we will be looking at is central bank liquidity provision to banks through the Bridge LTROs, the special pandemic related operations that were announced on March 12, 2020. And the channel we have in mind here is that banks made channel liquidity to funds through the money markets. And we will see whether this is something that took place and whether this Bridge LTRO supported money market activity. We're going to use several data sets in our analysis. We are going to lean in particular on detailed fund level data using the Lippert database. And we will also use confidential data on bank borrowing from the ECB, matched with bank lending to funds in the people markets. Just to give you an idea of how our paper fits into the different literatures out there. First of all, it was clearly related to a very vast literature on investment funds, which looked at aspects like fund fragility, liquidity management in the fund industry, fire sales performance evaluation. Our paper provides an analysis of central bank asset purchases and liquidity provision to banks in the liquidity crisis and how these particular central bank interventions affected developments in the fund sector. We also relate to the literature on the effectiveness of central bank interventions. Many papers have looked at transmission of central bank policies through banks. We looked at financial market impact or the impact of new facilities introduced by central banks. Our paper will look at the effectiveness of central bank intervention for non-banks investment funds with no central bank access. And lastly, we also relate to the literature on money market functioning or malfunctioning in crisis times, whereby we will look at transactions between banks and investment funds in the liquidity crisis. So with that, let me give you an overview of what we do in the first part of the paper, which focuses on the impact of central bank asset purchases on the investment fund sector. We are going to be interested in the impact of purchases on fund performance and fund flows. We are going to zoom in on the Pandemic Emergency Purchase Program, the PEP, which is a program that was announced by the ECB on March 18, 2020 in the evening after markets closed and was implemented as of March 26, 2020, meaning the purchases under the PEP actually started on that date. To analyze the effects of the PEP, we are going to zoom in on a particular subset of investment funds. We're going to look at bond mutual funds that satisfy two criteria. First, they invest in investment-grade securities. Second, they hold a non-zero share of euro area securities in their portfolio. The reason we are looking at this particular set of funds is that we want to look at a relatively homogeneous set of funds so that we can reasonably identify the effects of the PEP. That's why we look at the funds that invest in investment-grade securities. The reason we are looking at the funds that have some exposure to the euro area through their portfolio holdings is that we want to look at funds that can be reasonably expected to be affected by the PEP. That's why we look at funds that have some exposure to euro area securities. Having established this particular set of bond mutual funds, we are going to do something very straightforward. We are going to compare funds with higher shares of PEP-eligible assets in their portfolio X&T. We are going to look at the portfolio holdings as of January 2020. We are going to compare these funds with funds with lower shares of PEP-eligible holdings. Now, you might wonder what is the difference between these two groups of funds driven by after all we are looking at a relatively homogeneous set of funds investing in investment-grade securities. Well, the difference is related, for example, to holdings of securities issued by US issuers of securities issued by banks. For example, when we think of US issuers, the difference between higher and lower PEP-eligible fund groups is 15% of holdings are invested in US issuers for higher PEP-eligible funds, whereas 40% of the holdings of lower PEP-eligible funds are invested in US issuers. Now, neither US issuers nor securities issued by banks, by financials, are eligible for PEP purchases. This is what gives us a variation across funds in terms of how much the holdings were exposed to the PEP program. First, we are going to look at the impact of the PEP on fund performance. This chart really tells the story. Let me tell you what's in this chart and then I will tell you what the outcome of our regression analysis is. This chart gives you fund market value change in percent between January 2020 and June 2020, and it does so for two groups of funds. Those with higher PEP-eligible holdings are the blue line, the performance of the funds that have relatively more PEP-eligible assets in their portfolio in January 2020, and the red dotted line is the performance of the funds with lower PEP-eligible holdings. Now, we normalize their performance to zero in January 2020. We trace it over time, and what you can see is that the performance of these two groups of funds is remarkably similar all the way until mid-March, including the very large drop in their performance as of the beginning of March, going until the middle of March, very similar performance parallel trend there in these two groups of funds. But as of the middle of March, in particular on as of the March 18th, when the PEP program was announced, we see that the performance between these two groups of funds decouples. The funds that have more PEP-eligible holdings in their portfolio see their performance improve on announcement as of March 18th and continue trending upwards afterwards, and those funds will have fewer PEP-eligible securities in their portfolio, still see their performance decrease in mid-March and only recover later on and converge to the performance of more PEP-eligible holdings funds later on by June of 2020. We put this into the difference in different setup, and what we get is basically what you see on this graph. Specifically, what we find is after PEP announcement, this performance gap between higher and lower PEP-eligible funds was 3.7% in the announcement week of the PEP, so this gap is 3.7% in the performances with those funds that have more PEP-eligible holdings performing better. In the first week of PEP implementation, as of the week of March 26th, we still see a statistically significant gap in performance of 2.7%, and in the second implementation week the gap is still there and it is 2.1% in terms of performance. Thereafter, the gap is no longer significant, so we do see that for those funds that have more PEP-eligible holdings above the median, they see their performance improve immediately upon announcement of the PEP, and they outperform the other group of funds for the subsequent weeks as well. Now, this result is interesting also because we know that there is a link between fund performance and the outflows that the fund faces. Bad performance tends to trigger more outflows, so the obvious next question is if PEP managed to help improve the performance of funds with higher PEP-eligible holdings, did it also help stem those outflows that we saw very early on in my presentation? And that's exactly what we look at next. We ask what is the PEP impact on fund net flows, so inflows minus outflows, and here is the excerpt from our production table and our definitive setup where, again, we have the PEP-eligibility dummy for those funds that have more PEP-eligible assets, and we split the analysis in the time periods, the beginning of March, the week following PEP announcement, the first implementation week of the PEP second, and the period afterwards. And what we see is that before the announcement of the PEP, when the funds face this large outflows, there is actually no difference between funds with more or less PEP-eligible holdings. I show you the results into columns because one specification is written without controls, but the results are very, very similar. No difference between low and high PEP-eligibility funds prior to PEP announcement. But with PEP announcement, we see that funds with more PEP-eligible holdings have more net flows, so they have less outflows, if you will, in this period. And the effect is actually quite large. After PEP announcement, the net flows of higher PEP-eligibility funds actually go up by 63% relative to the other funds. We do not find any statistical difference between high and lower PEP-eligibility funds after the end of March. By the end of March, as we saw also on the very first graph, the rounds pretty much stopped in our group of funds and the flows largely stabilized in both high and low PEP-eligibility funds. So in sum, what we conclude from this part of our analysis is that PEP really helped improve the performance of funds and helped stem fund outflows. Let me go to the second part of our analysis where we look at the effects of central bank liquidity provision to banks and how it affects repo lending to investment funds. Here we are going to zoom in on the new long-term refinancing operations, so-called bridge LTROs, that were announced on March 12, 2020. They were conducted weekly and all matured on June 24 of 2020. Why June 24? Well, that was the date on which a very large targeted LTRO operation was due to settle, and these bridge operations were supposed to bridge the time until that large LTRO operation in June. What we're going to do here in this part of the analysis, we are going to look at the relationships in the repo market between banks and investment funds, and we are going to zoom in on the relationship and investment funds had with banks prior to the COVID crisis. These bank fund relationships are actually sticky. They do not change over time. There are certainly no new relationships formed during this crisis period, and what we are going to do is we are going to look at funds that have two or more bank relationships. Why do we do that? We want to take advantage of the Quadramilla methodology and control for fund-specific effects so that we look at bank repo lending to funds for the same fund comparing across different banks. What kind of different banks are we going to comparing between? Well, we are going to split banks in two ways. We are going to compare repo lending across banks with higher versus lower exposure to the pandemic-induced liquidity crisis, the so-called Dash for Cash, XNT as of January 2020, and we are going to explore two cross-sectional splits. One is we are going to split banks on commercial paper all over, and the second split we are going to explore is we are going to split banks according to the differential holdings of excess reserves. Let me tell you a bit more about these two splits. Here is a motivation for our split on commercial paper, and this chart is giving you commercial paper issuance for the banks in our sample between January 2020 and June 2020. What it shows is that the commercial paper issuance by banks came pretty much to a standstill by mid-March of 2020. There was very, very little issuance by that time, and then it recovered gradually going forward. Again, we have some vertical bars indicating some of the policy interventions we will be looking at, the announcement of which appear on March 12th, we have the settlement of the first breach operation on March 18th and the PEP announcement, and then we have a number of events happening post-March 25th. So what we are going to do with this, we are going to split banks on their commercial paper all over needs. We are going to take the amounts that banks needed to roll over in the commercial paper market over the February to April period. We are going to take this as a ratio to the total assets, and this is going to give us a measure of funding liquidity needs in the bank commercial paper market. A second split of banks cross-sectionally we are going to explore is looking at the excess reserve holdings, so holdings of reserves in excess of the reserve requirements. We are going to take the amount of excess reserves held by banks as a ratio to total assets, again, extent in January 2020, and this is going to give us a measure of readily available liquidity if you will that banks had when the COVID crisis hit. Now what are we going to do with this sort of two cross-sectional splits? We are going to look at the effects of central bank liquidity provision on bank repo lending to investment funds, and we are going to test how bank repo lending to funds changed. First we are going to look at the change in bank repo lending to funds following the announcement of the bridge LTROs compared to the week prior, and second we are going to look at how bank repo lending to funds changed following the settlement of the first bridge LTRO operation. It was also in the same week as PEP announcement happened again compared to the previous week. The reason we are not going past first bridge LTRO is two-fold. Number one, after the first bridge was settled, so it was the second bridge LTRO settlement, there were several events that happened and I already showed them on some of the charge. There was a settlement of the targeted LTRO on March 25th. There was also a beginning of actual purchases under the PEP, so there's a multiplicity of events past March 25th that is going to be making very difficult for us to say what are exactly the effects of bridge LTRO as such. So we are going to focus on the announcement effect and we are going to focus on the settlement of the first bridge LTRO, meaning the moment at which the money that banks actually borrowed in the first bridge arrived on their balance sheets. Now what is the hypothesis here? We conjecture that banks that were more exposed to March 2020 liquidity crisis should be relatively more affected by central bank liquidity provision. This central bank liquidity provision on March 2020, so bridge LTROs was aimed at alleviating bank liquidity constraints, so the conjecture is that those banks that were presumably more liquidity constrained because they were more exposed to commercial paper dry up because they had less excess reserves on their balance sheet would be more affected by these central bank interventions. So what is our results in terms of the announcement effects of bridge LTROs? Well, I can be very fast on that because we don't find any evidence of a positive effect on bank repo lending to investment funds following the announcement of bridge LTROs on March 12th 2020. No difference between more or less exposed banks, no effect of the announcement. What about the settlement? And here is the regression table where again we are comparing banks that are more or less exposed to the March 2020 liquidity crisis. And remember we have two splits. We have a split of banks on the commercial paper exposure and we have a split of banks on how much excess reserves to total assets they held in January 2020. And for each of these splits we explore two left-hand side variables. We looked at the change in transaction volumes week on week. And we also look at the change in the amounts of repos outstanding week on week. And what we see here is that indeed more exposed banks lend more. The repo transaction volumes go up by 2.44% if we look at the commercial paper split by 1.64% if we look at excess liquidity split when it comes to the change in transaction volumes. And if we consider the change in the amount of sending of bank repo lending to investment fund sector then we see an increase of 1.87% if we look at the commercial paper split and of 1.65% if we look at the excess reserves split. So there is some indication that the settlement of the first bridge LTROs and again it's also the week where PEP was announced. So at this point it's just week on week change March 18 week compared to the previous week. There is some association with larger transaction volumes and amounts of outstanding for banks that were more exposed to the March 2020 liquidity crisis. Now there are two events at least in that week of March 18 there is a settlement settlement of first bridge LTRO and there is PEP announcement. So you might wonder what is it that actually potentially can explain this increase in repo transactions and amounts of outstanding. Is it the PEP or is it the settlement of the bridge LTRO? We're going to try and get at that question by looking at the regression setup where we further interact our bank exposure dummy to the liquidity crisis through commercial paper or through excess reserve holdings. We're going to interact that with the dummy of whether or not a bank actually took up liquidity in the first bridge LTRO. And so the question is do banks that were more exposed and actually took up liquidity in the first bridge did they lend more to investment funds in the repo market following the settlement of the first bridge? And you see the results we only find some results for the changes in transaction volumes, no results for the amounts of outstanding. We do find that more exposed banks that actually did take up bridge LTRO funding increase their repo transaction volumes by 3% if we look at the commercial paper split and by 4.19% if we look at the split based on the excess reserve holdings. So there is some evidence that actual take up of liquidity had some effect on the transaction volumes no effects on the amounts of outstanding so possibly these funds obtained in the first bridge LTRO were used to roll over existing credit rather than on the net increase the amounts of credit outstanding. So some evidence of the association between bridge LTROs and bank repo lending to investment fund sector in the repo market. I am calling it an association because of course the all banks had access to LTROs and the decision whether or not to take up LTROs is endogenous. So this is sort of the the correlations that we show here in terms of how those operations and the take ups in those operations is associated with bank repo lending to funds in the money market. Let me conclude with a few sort of thoughts on the policy implications of our work. We started off with the question of do non banks need access to the land of last resort. Should funds be eligible or central bank counterparties for our operations? Should there be a dedicated credit facility for funds? Should fund shares be eligible for central bank purchases or should they be eligible as collateral for central bank liquidity operations? These are all the questions and ways in which funds can have some access to central bank balance sheet and have some access to the land of last resort. Now I should say that granting funds any access to the land of last resort has costs. There are very large operational challenges and legal challenges potentially and there are also additional risks that can come in if funds do get access to the land of last resort. Now what we try to do in this paper is something simpler than actually answering this host of questions of how and whether funds should get access to the land of last resort through this new means. We simply asked has the existing toolkit that was in place in March 2020, was it helpful in terms of alleviating the liquidity crisis investment fund sector faced during that time? And our answer is well actually the existing toolkit was helpful. Fund performance improved, fund outflows stabilized and bank repo lending to funds was supported to some extent. So while our paper is not a normative paper that tells you what is the best way to provide liquidity to funds in the liquidity crisis or what is the most effective intervention, we think that it sheds some light in terms of the cost benefit analysis as we are thinking about the cost and benefits of granting funds access to the land of last resort. Our paper gives some thoughts on this cost benefit analysis by showing that also some of the existing rules were capable of reaching the investment fund sector in the crisis although funds did not have direct access to the land of last resort. Let me stop here. Thank you very much. I very much look forward to the discussion and your comments. Thank you. Thank you Marie. The paper will be discussed by Yiming Ma from Columbia University. Thank you so much for having me to discuss this very interesting paper on whether non-banks should receive access to the lender of last resort. And let me just say again this is a very important topic as Marie said non-banks in particular open and mutual funds that invest in fixed income securities have rapidly grown in size and in addition to just being larger and larger they also perform you know a very special and important role for the economy which is liquidity transformation right and they do that by issuing redeemable shares that investors can go and just you know redeem on demand at a daily basis but their assets in comparison are much more eliquid so they invest in corporate and government bonds so there's a mismatch between the liquidity on the asset and liquidity on the liability side so you know much of what they do looks like banks and their degree of liquidity transformation has also been increasing over time while that of banks have been falling okay and so they perform a similar function for the economy and it's been found that they may suffer from similar risks which is the risk of having inefficient runs and the key reason again is assets are more eliquid so if everyone wants to take the money out of the fund you know assets would have been sold at a discount at a fire sale price and that is not sustainable and hence there's this first mover advantage to take money out and to run from the fund okay and so given the importance of their function and the risks in here and in the function they perform this paper goes and asks a very important question well you know if they look a lot like banks and have some of the risks that banks entail you know should they also receive a lender of last resort access like we do have for banks right now okay and the main findings as Millie summarized is that the announcement of asset purchases increased the maturities of repos and more liquidity constrained banks lent to funds further funds that have higher shares of assets eligible for central bank purchases in the portfolio before the COVID-19 crisis also endured smaller outflows and had better performance okay and overall I think the answer is that mutual funds were stabilized effectively without direct access to the lender of last resort and I think the evidence presented is over very convincing you know I think that the execution is generally very careful combines lots of interesting data and again addresses a very important question so I mostly had some big picture comments to think a bit more about you know what is the economic channel behind the results of BC and what you know do they mean for thinking about this issue going forward I will start by looking at repos in particular I will you know try to convince you that it's important to think about the price at which these repos extended to to really address the question of whether they were able to stop runs and then you know I want to think a little bit about collateral and in the end the channels through which asset purchases affected and stabilized mutual funds okay so is that first you know the interest rate on repos I think is important to jointly consider together with the volumes and the maturities that now the paper has been looking at and that are very important okay so to understand that let's just recall for you know the moment why mutual funds have runs or have this first mover advantage in redemptions okay and the reason is that investor redemptions right to meet these redemptions the fund needs to sell some assets these asset sales because they need to be done immediately and these assets are really liquid they often incur discounts right so in the fire sale for example you know assets are sold at a penalty rate now you know these discounts though they're not immediately reflected in the net asset values that investors who are taking the money out obtain right these net asset value values are sticky they're sluggish to adjust and hence if I'm the investor and I know that this is going on I want to take my money out first I want to take my money out before other investors take out their money so that I can get the higher net asset value that hasn't yet adjusted okay but if everybody thinks like that then you know we're in we have a problem because then everybody wants to front run and everyone wants to take their money out before other investors have taken their money out okay so this is similarly to the classic bank run problem where you know everyone wants to take their money out in a bad equilibrium okay so you know repo right could potentially have the benefit of alleviating or avoiding these types of runs okay so you know the ideal counterfactual scenario would be the fund you know when it has investor redemptions okay the fund doesn't goes to sell asset it goes to raise repo funding okay it uses that funding to pay its investors right and then you know because there's no more fire sales there's no more discount incurred on the funds net asset value all right and there's no more incentive to take the money out first because there's no discount incurred there's no fire sale discount on the net asset value in the first place okay and in this sense you know if repo funding can be flexibly extended in times of stress in times of investor redemptions okay then we may be able to you know avoid these inefficient runs from happening okay and so this is the potential benefit of repo funding but you know against this benefit it's important to think about what is the potential cost of repo right and the cost of repo in a nominal sense is just you know what is the interest rate as it's being charged okay and suppose okay so suppose funds can borrow repo but especially in times of crisis this repo funding comes at a high or penalty interest rate all right and this could be very likely because you know it's been found that dealer bailing bank balance sheets costs are expanding in crisis times it is also the case that repos are borrowed in the over-the-counter markets in which these dealer banks have extensive bargaining power over the mutual funds okay and if that is the case right that just means that okay you do not need to fire sale you don't have the fire set discounts but you still need to pay these very high interest rates for your funding okay and if the fund net asset values are adjusting too slowly right to reflect these penalty repo rates okay then there is still that incentive to front run before the NAV has fully adjusted or in other words the incentives for a fund runs may still persist okay and so that's why again this is just a hypothetical scenario it may not be like this but again it's good to think about you know what is the interest rate charged okay does it really change then times are bad did it increase more for mutual funds we needed to borrow more and importantly how does it compare right how does it compare to a hypothetical interest rate that the central bank could supply right because it could be that the funds right now are accessing funding at a much higher rate at a rate that you know have this effect on that asset values and run incentives but that the central bank would be able to provide a rate that is more efficient in crisis times that would alleviate the you know the the penalty rate due to the higher repo funding rates right now okay and I think that you know this is possible to do because the MMSR data set is very nice because it does have the transaction prices available and I think that the joint analysis of volumes and rates can help us better understand you know whether uh the access to let a lender of last resort could help to prevent by runs by even more than what currently is the case with the available repo funding from just dealer banks okay and just um that was the first point but notice that everything we discussed so far would have worked with unsecured and secured funding alike right and you know it's very interesting that you know it's repo that is being lent to these mutual funds and repo special because there is a collateral underlying that transaction okay and so far there's been little documentation of secured borrowing by mutual funds I don't think that's because it doesn't exist but I do think that it's because so far really there hasn't been any data I think the only source that I could find related to this is Trinoco and Sanderam who look at really reportings the text of the reportings and you know find that you know mutual funds have credit lines but I think the evidence for the use of secured funding that fact on its own is novel and interesting and could potentially be an important contribution of this paper all right and I think to further consolidate this contribution I think it'll be interesting to look more into what types of collateral is being used to secure the repo loan and how does this collateral vary with the funds overall asset portfolio right is it the most liquid types of securities that they use or is it the more illiquid types how does this you know contract change in the cross-section depending on what type of fund we're looking at the illiquidity of their assets and how does it vary in the time series right does it change in good versus bad times does it vary you know at times when dealers are more constrained etc etc I think understanding the role of collateral can help us understand better about you know what is the overall economic significance of repo funding to mutual funds and also you know how that could affect their crisis liquidity management okay and lastly I just wanted to talk a little bit about asset purchases and the potential channels through which it has effective mutual funds something that you know we thought of a lot and really weren't fully able to to get the answer to so you know perhaps this is possible in the European setting and so this is a graph about outflows from from US mutual funds and it really looks very similar to the one that Marie just showed about the US at the European funds which is that you know the outflows and again negative is outflows it really started to be curved uh with the announced purchase of corporate bonds okay and that was around March 23rd and April 9th now there was a previous announcement of the purchase of treasury securities so we're an extended version of QE basically that didn't really seem effective okay and so both treasuries and corporate bonds were held by mutual funds right in particular investment grade mutual funds were holding treasuries as well as investment grade uh corporate bonds that were announced to be purchased on March 23rd okay so what appeared like from a very simple and naive conclusion here is that the purchase of some type of bonds were effective and the announced purchase of other types that are the more liquid securities were not effective okay and I wonder what the channel is uh you know for the funds in this paper right um because there could be two potential channels through which asset purchases can help fund uh you know outflows and performance the first one in which is you know the liquid assets that are being sold by the funds in meeting redemptions right uh the discount on them is improved because the central bank now is announcing the purchase of these assets okay and if there's many buyers of an asset that people sell well then the sellers may not incur such a high discount and you know that uh stems the potential outflows that are worried about the discount incurred okay but it could also be that the purchase of illiquid assets uh the ones that are not being sold but the ones that are being held on fund balance sheets are curbing the outflows okay because the uh you know expected purchase of these illiquid assets in the future by the central bank could convince everyone that okay the fund is very healthy and convince everyone to stay busy with the fund okay and it'll be interesting to sort of look at which types of funds but type of exposure uh help the funds to to benefit more from the announcement of asset purchases to shed some light on the potential transaction transmission channel of asset purchases on fund outflow and performance okay and related to that uh you know is if it was through these illiquid assets right then is the effect just a direct expected price impact right of asset purchases on asset prices right this would exist outside of you know any institution you just expect to buy a certain assets prices reflect that expectation and prices would go up all right right or is the effect more indirect through alleviating fund outflows right whereby investors look at the potential uh announcement of asset purchases in the future right they're assured by the fact that the fund assets they're holding is going to be bought right as a result they're less likely to run the fund is less likely to sell assets and that reduced asset sale at higher prices is going to help preserve fund out okay it seems like the latter is a bit more of what uh you know the optimal uh solution would be because the former would basically imply a general effect and you know price impact on asset prices um but it would be really interesting you know if uh the data can shed any light on these potentially different uh transmission mechanisms okay and so is that let me end just again by saying I think it's a very important topic I think the data is unparalleled and that the results are very convincing and showing that mutual funds did not require direct access to the lender of last resort to be stabilized during the COVID-19 crisis I think it'll be interesting to look further into the economic mechanisms at play which includes looking at the interest rates on repos to understand whether there were penalty rates that could have still contributed to runs even if repo volume was extended I think looking at the collateral being used is interesting and how that could have varied over time and in the cross section and lastly in terms of asset purchases you know I think the uh you know effect is very uh interesting and it's definitely there but the transmission mechanism is perhaps equally important especially as we think about questions such as you know whether mutual funds should receive direct access to the lender of last resort going forward is that thank you very much thank you Yiming so before I turn to questions from the floor Marie would you like to take a moment to respond and maybe you could in your response also reply to the question whether you have analyzed repo rates thanks thanks Luke about biggest thanks goes to Yiming thanks so much for really fantastic discussion it's going to be extremely helpful for us as we work on the next version of the paper thank you I agree with everything you said we can we can and should do more on the repo analysis front indeed we can and should look at the prices and end of the collateral so we started looking at this but we we have not had time to to finish the analysis but this is definitely on our list I think what's very interesting is that Yiming and her co-authors have shown that when it comes to asset sales by mutual funds when they face a run they liquidate the most liquid assets now it could be that they bring some of the less liquid assets potentially of those most to fire sale subject to most fire sale discount they bring them to the repo market including they can pledge some of the assets that are for example not eligible for the public bank bonds and borrow against those in the repo market and so indeed I think there is a wealth of information for us to explode in terms of what is the type of collateral that funds pledge in the repo market did it change with the onset of the crisis how did the prices evolve and indeed in fact the combination of volumes prices and collateral I think that's the triple that we need to be looking at in in that analysis so I fully fully agree in fact there is sort of another channel through which PEP could have helped in effect which is that it also affected the collateral value of some of these some of these assets so we can also sort of interact and and see what the PEP effect was on those collateral values in the repo market on the PEP side I want to say two things one is I think it's very very interesting this sort of somewhat of a difference that people found looking at US data and fund interventions and what we found in our paper what's very interesting to me is that I believe papers like Yeming's paper and the paper by Palato et al documented really the biggest effect was the April 9 intervention of the Fed which really sort of targeted those fallen angels now what we found actually in Europe PEP as such had you know an immediate and strong effect and basically all runs were gone by the end of March it did not sort of prolong until the beginning of April I think this is a very very interesting difference and I think if there is something to be explored what is the difference between Europe and US that led to this particular difference so that's definitely definitely on our list one thing that I want another thing that I wanted to mention is that we did run a robustance check in our paper where we actually considers those Fed interventions and we control for pet interventions to see whether there is any you know sort of change in our results if we take those into account because the funds we are looking at are you know exposed to the euro area but they hold all kind of other assets as well including US assets and we and our results survive if we control for pet intervention so that's maybe something that's important to mention thanks so much Yiming again please do send us your slides and look over to you if there are more questions from the floor. Thanks Marie and indeed thanks Yiming great discussion so I have one question here from the floor about the repo results the question is whether it is possible that the most affected banks naturally decrease loan provisions and thereafter increase them back to previous levels so whether it could be that the observed pattern is basically a natural rebound and not policy induced and somewhat related to this on the PEP results with a different diff where you focus on the announcement effects they're very strong but then in the chart you also show that basically both lines again converge at the end of the sample so there seems to be also a strong reversing for the non-eligible and what what could be driving that so it's sort of this shrinking in the gap yeah so basically how much is policy induced and how much is sort of a natural rebound as fire sales go away. Yes thanks so much these are both excellent questions let me maybe start with the PEP analysis in this gap between more and less repeligible funds and what can explain the sort of shrinkage over time now one thing that I would like to say is that we know that our programs have spillover source on non-eligible assets that has been documented sort of with other programs that these introduced for example CSPP the corporate month purchase program did have spillover so so on non-eligible bonds but secondly there was a you know there was sort of a tough question in this question which is to say how come this sort of red dotted line of less repeligible funds converges to the blue line and what is interesting is that if we saw this graph again you would see that this convergence rapidly happens after April 9 which is that famous Fed intervention that Yiming has looked in her paper and others have looked for the US and remember that the red dotted line are funds that are much more exposed to US issued securities than the blue line and we know that April 9 intervention where Fed basically announced that they will be supporting fallen angels had a very important impact on those funds that hold this particular type of asset so actually our evidence would square again this is April 9 importance in terms of the Fed intervention because that's actually where the two lines really converge to each other so definitely spot on questions on the repo results I mean again we do struggle with some multiplicity of events and there is a of course the the the access to the to the bridges is is an endogenous choice so what we showed is sort of some association between bridge bridge operations and the repo lending we do have a setup where we look at the actual take up in the LTRO so when the question is is it really policy intervention or is this a natural rebound you know the way we try to sort of target that particular question is that we look at those banks that actually took up liquidity in the bridge LTRO and compare them to the other exposed banks and we do see that they have increased the amount of their lending to funds in the repo market so that's sort of as as good as we could do for now in terms of sort of isolating narrowing down the effects of policy intervention there thank you very clear another question that comes up is on the eligibility criteria for PAP and but you could say a little bit more about sort of other differences maybe in terms of fund characteristics across the eligible and non-eligibility groups I mean you know should we think of one of these groups as having more liquidity risks and another is this helping your results or maybe not yes thank you so we looked at sort of the most obvious uh uh fund fund characteristics that literature looks at like performance like flows like size and ex ante these two groups of funds are remarkably similar and you could also see sort of in this parallel trend for the performance for example that I showed but we have sort of the same for flows but we also again we looked at the size of assets under management and so on these are very so this was sort of one goal of our analysis is to narrow down a set of funds that are quite similar ex ante and then we could sort of really think what we are looking at in terms of this divergence in performance that this explosively driven and related to this PAP eligibility so you know we have some summary stats in the in the in the paper uh that show that on uh many of the key characteristics these funds two groups of funds are largely similar look can I ask one quick I mean it's not a sort of a thought yeah Roberto go ahead sure hi Mary um so it feels to me a little bit um like we've been talking a lot about exposed um actions you know and situations and I wonder if like how much are we thinking about ex ante implications of those exposed actions and interventions and not not that I have any you know I mean like maybe you call me old-fashioned you know there's this always this concern but I feel like we're not talking too much about that I wonder if that's something you guys think about or I don't know no I think you're raising a very important bigger picture question Roberto uh and I think this question pertains to both sort of the analysis of what is the exposed effects of some of these interventions but also the question as such of you know if we grant some kind of access to the central bank balance into investment funds what kind of effects will that have on incentives to invest in liquidity to manage the risk and so on so I think this is you know it's it's an extremely important question for both exposed analysis of the the effects of existing tools but also sort of a bigger picture question of you know if we introduce new tools or if we introduce new types of ways in which investment funds could be supported liquidity crisis what kind of effects will it have on their extent incentives I completely agree thanks for this question so and then the last question from Sebastian and maybe somewhat related it's also a bigger picture which you don't directly maybe address but still it would be curious to hear your views on this which is about regulation so now in your conclusions you talk a lot about should we give access to the balance sheet of the central bank but to what extent could part of this be addressed through reform of investment fund regulations such as limiting redemptions gatekeeping and the like yes another very important question so there are also I think now a number of papers that actually looked at some of the effects of some of the regulations that were introduced post financial crisis to to presumably limit liquidity risk in funds but I think the it's a mix back whether they limited the risk or actually precipitated some of the runs but that is definitely again the question on the table and again Yeeming's work speaks to that sort of this liquidity transformation done by the sector what does it mean in terms of you know the exposure to liquidity risk should we regulate the liquidity holding should we impose some minimum liquidity requirements on the sector I think this is a very important question on the table and indeed it could be something that that could reduce the liquidity risk exposure but actually going back to Hubertus point it will also have some repercussions for how these how these funds operate and and their business model and some of the financial market repercussions so I think that it's definitely very important to to think about and indeed something that regulators are thinking about what have we learned from this liquidity crisis and which interventions worked and which did not absolutely great so thank you Marie and your co-authors for this interesting paper


Good morning traders. Good morning everybody So welcome to another Full pre-market and also First hour of trading together with bookmap. Let me know if you can hear me Good morning everybody. Morning, Anthony Morning poll Morning team to morning mark more again Good morning traders. So I'm gonna prepare this morning Nvidia AMD Then we're gonna prepare some small caps APM We have also meds we have NKGN good morning all okay, let's start over here so first of all this morning we had C ELZ It's a small cap this game To the daily level around seven seven twenty We had the major stuff Wheel order over here short at seven Now a lot of traders in the room took this We found borrows. I remember traders that for borrows We have to always book in advance Before starting also I want to remind you read always the disclaimer all the Lessons that we do every single Wednesday are for educational purpose only so Read carefully the disclaimer know that we are showing over here how to use bookmap Then if you want more Lessons if you want the more coaching one one, that's what I do in the trading room Jay trader Co Good morning Paris. Good morning, Steven. Good morning demo. Good morning everybody So CLZ over here already to the target this morning. We have a small pop We're gonna look over here for this level to trade around 540 Very low volume right now. So I'm not really interested in trading this but Only if we get to this level. Well, this is a little bit of Too much shine over here a second. We're gonna Move with the text So that's my sweet spot Let's put over here Sweet spot To look for a short. So we showed over here seven also if you get in the room You had all time with the timestamps. We're alerting this and all the way down Then we had another small cap this morning pretty interesting is 8 p.m You can see the levels that I trace these red levels are Exactly where we have the daily level this stock over here started to extend into the $6 and then started to reject over here the $6. Okay, so some some stuff's Faded view our projection and now it's fading with very low volume So how are we gonna trade this again? I'm gonna look for a push this morning into this at $5 or 552 short So we're gonna have this over here or over here five 50 level to short, okay Yes, you will see traders in in this court unfortunately only Book map because I have so many things on the screen right now, and I'm trying to I will try to fix it over here, but if you want to see the entire We say Profile that I have right now. So also the charts Just go on to YouTube as well. Thank you very much So 8 p.m. For now, we're gonna leave it over there in case we pop up. We're gonna put it on book map Then we have the meds this morning So meds will be interesting. So we're gonna keep it over here on Book map We had two daily levels we had $12 over here and Then we had the other level over here the $14 It popped over here failed and then you can see that we start had it having over here a little bit of volume Dipping to the VWAP we had a curl over here, and then it came exactly to the daily level Over here. We have book map. We can see the perfect rejection. Okay at that 14 Okay, so 14 level you can see also over here book map grinding grinding grind so this zone over here If you start looking at this zone is only over here green Okay, so those dots that you see in this moment. What are those dots? Those dots are essentially only buyers Okay, of course, we have some sellers, but the majority of those are buyers so you want to simply stay away from shorting this part of the move and We look we're looking instead for the backside. So once we see that daily level Okay, so we start seeing this level over here and We start seeing this level over here at that point You're looking then to trade short so the 14 over here With a starter and then once we have over here more unwind we can add Be very careful to trade this because this is a micro flow stock or even better.  I don't really suggest you to trade over here into this 11 12 dollars over here much better if Instead this morning will wait for an extension Generally the stock tends to fail but not before having put over here a extension So this zone over here is going to be my favorite zone over here into the 1350 to short the secondary zone we're gonna Look for the 1250. Okay one second traders. Let me also fix over here book map Okay, all right. So the next one is Gonna be traders looking for Another stock that gave a lot of problems yesterday to traders so we're gonna put a I SP Okay, so looking over here for a ISP now. This is not a stock that I would invite Beginners to trade This is the price section we had yesterday So it started over here this major dip around 12 o'clock and we spoke about in the previous lessons of the Consolidation that we have mid days. Okay, so this stock has been moving from 1.50 dollars until 8.60 dollars It's one of those stocks that flow rotation high volume simply started like to push all morning Now in the afternoon we had the major squeeze yesterday So be very careful to trade and only trade this when you're We say at the precise level my point this morning if you look over here on YouTube is Trying to look for a possible dip around 750 760 too long. So this will be the area That I'm looking too long. You can see also in book map the Good heat map that we have over here So in case of a washout fast of the gate and reclaim I'm looking too long over here for a push to the the 850 or 9 if instead we have push this morning to this Daily level of a 60 or even better 10 Okay, so we're gonna extend over here this We're looking at that 10 you can see over here. We have a map at a 60 or 10 Then we're gonna look for only those two levels too short or if we're long we're gonna look for those as two targets Okay, so again be careful on this because yesterday trap a lot of traders and I Don't want that you get caught from side of the move. Remember. This is still not backside Backside will be if all the genus over here are for the shore side and Right now. They're only bullish. Okay, so Practice patience over here for the first part of the morning.  I put her here ASP IFB D and then as last one I would put her here NKGN So we're gonna Explain a little bit of NKGN Faded this morning We could see that it got to this 190 had the daily level resistors at $2.  So with low volume. I'm gonna look for a possible over here short 156 but even better if we get 170. Okay, so gaping crap over here What we did is We are looking at the precise level over here on book map and you can see that we have that Pretty decent over here heat map of 160 170 confirm confirmed over here also by The price section at top every single time this one's okay. So if we extend this to the left We can see that every single time the price got to this 160 the price rejected And over here as I said the system Calculates then at the gate what setup is going to be for us to trade in this case is telling me this is gonna be a short Okay, time to move to the big cap land So we have first of all in queue for the futures This was Good morning for us It's very simple over here to See where we longed so we started to long over here early morning into this One minute J lines We had over here a secondary long over here and some of the traders in the room already made their Their day Then we had a pullback to this other J line over here and we started to have again other long plays Always on the dips you can see that we never long over here on the breakouts But always with the dips. So if NQ and yes, they will continue to be strong today Then we're gonna look for AMD Nvidia and other bullish stocks. Okay, so If instead so follow very good right here if instead we're gonna have NQ fading then we're gonna look more for stocks like Tesla stocks like For example Apple Google there are like fading in the in the recent days So we're gonna make two plans on NQ one is gonna be a Breakout over here of this 18 and 100 a sorry 1800 over here and in this case, I'm looking for a pattern of Breakout and Then a pullback and then I want to long over here on the pullback. Okay The other pattern instead is what we call FFT push fail below rejection and unwind The good point over here is that With book map and the trading system we developed The forecast will tell you with setup over here to trade Okay, again, if you're a part of the room or not part of the room you always need to read that disclaimer Meanwhile, we took a long position right now a 20 So I can share over here why we had this long play So AISP Okay, so we can put over here another template and we can also put over here book map It's a small position just a starter Okay, so we have in this case. Let me put over here this Okay We have our demand zone. We have over here our J lines We have over here book map. You can see that starting over here to curl At this point over here, you can see this curl Okay, so we can enter 8 10 8 20 and now we're looking for this push to a 60 if instead we're gonna see a very fast Breakdown over here Then we're gonna cut simply the position. Remember, this is still 10 minutes before the open 50 minutes So it's a starter really a small position. We want to trade, you know after 9 35 9 40 Another thing remember that this time we explained how to use the trade control panel So you can enable your trading even if you want to simulate the right or you can connect simply your trade panel with The broker but over here you can select for example chart And then you can select the amount of size that you want to trade for example one of the shares 5 000 share 1000 shares You can buy the market buy the ask the bid So adding liquidity if you buy the bid or taking liquidity if you buy the ask and over here you can sell or short Then I can also you can put your stop loss You can work also the market orders. Okay, so simply getting filled over here with the market This is pretty useful because simply You're gonna practice and learn better how to use book map here Okay, let's continue with with the large caps First of all is tesla For now I'm waiting tesla the gate Okay, so I'm gonna explain how to trade tesla We have a precise system of here on tesla If the mark will fail We're definitely going to be on this and as we said on apple and google like yesterday If the mark will bounce We will like practically stay more in amd and nvidia So you can see in the meantime asp like working, right? So look over here the volume. There's pushing from our Star a 20 again small position, you know good for a pizza and a coke But that's the main purpose over here. It's not really to show any kind of p&l Is to teach you Some of the setup that we trade and more teach you how to use book map to have a confirmation A better understanding of the market and I would say I read of the price section So on tesla over here, let's go with the plan If the market is going to fail I'm going to wait for Fail of this 178 179 and then into the zone. I want to look for a rejection Or if the market will top I'm going to look for This server here or the server here for a short Again traders if the market will push I will bypass these levels over here and really not looking too short Okay, so only if we have a poppin fail. We have a very good Thayer with the market. I'm going to look for these level two to short. If instead we're going to have a strong market Then md Nvidia like yesterday Will be in our watslist. Okay, so we have over here Uh md. I'm going to use a book map Up on this probably at the gate I like the stock because because it's sorry because outside the pre-Australian range Uh, we have a daily resistance over here to 11 You can see also a big heat map at 212 Uh, we're going to trade over here To set up so at the gate I will screen share this you will see forecast It will tell us what's set up to trade So i'm going to look for a possible dip over here to this 2 10 Uh, we'll probably see over here more book map support So this 2 10 over here will be my level Where i'll be looking too long Or If we have more drop Then i'm going to look over here into the 209 208 and 60 If instead we're going to have simply a breakout This is the pre-market eye 211 I'm going to wait for Again a push above consolidation over here And then we're going to look for display Remember the beast set up. So if the market instead will fail being that this is the previous day high Then we're going to look for A simply this is essentially a pump and dump. Okay, but in this case a pop and fail Okay, we will see over here fft if you see that fft over here that this With the mark with a lot of selling pressures coming down. Then of course i'm going to look for a short play Meanwhile over here a isp is working. We are a 70 so you can see also the volume rising. That's pretty good And this will be very very interesting over here. Remember yesterday. We were the open 1.50 bucks Okay, and simply with a nice jail and curl right now We had the long play. So you cannot complain really Of this uh this push Okay, so we have a lot of going on. Uh, so we have a nvidia md tesla nq coin isp apm ifbd nkgn meds And also we have a here still cells phg and The secondary I will stay also with Microsoft Apple and google Okay, so a lot of plays Of course, if you're a beginner focus on one Right now it's very interesting the price section that we're having on I Sorry a isp Okay, and also I heard that some italian traders over here are watching So bevenuti traders mi potete scrivere in ogni momento Se volete parlare o semplicemente qualche consiglio, okay I just said that in case italian traders over here want also to connect Feel free to reach out few things to say I made with bruce and book map several We say ebooks for who attends the webinars One is how I use book map. So showing some setups. One is how I use book map for the crypto. So showing some setups And you will see more If you Join the the room. Okay, so you will see Everything there meanwhile traders Just I came back with a great reader got friend ciao quadriviant scrive pure sempre sei sempre benvenuto quando venire San Marino Ti faccio vedere dove sta venendo la la trading academy Due palazzi So you can see traders also we have uh italian traders over here It's our diary. It's our quadriviant backside dario technically is a trendline break and The gray j lines below the yellow and purple and then you sure pops Ciao Marco. Buongiorno This is a meeting of italian traders, but everybody please can can join us So it's very nice to see over here people and traders also from Italy because generally italian traders are not, you know Too much into the nasdaq nice so that you have stock market or futures Uh instead these trader here Marco quadriviant and dario. I will say they're very very like advanced Good morning. Good morning life. No, we don't forget about net lens So at the daily level you can see a 60 rejected on a isp again I'm going to repeat one second how to trade Uh a isp if you are a beginner I would say avoid the first 15 30 minutes way to see a direction If you are instead pretty familiar with the small caps Then 880 pop and feel short and we're going to look for exactly this level that you see over here in bookmark Okay, so I really like this level, but if this goes beyond we have 10 dollars So those will be the two major levels. Okay, then I'm going to look for now I want to just explain over here a few things one second. So I'm trying to Okay, look at this one second. Okay. This is how the this is a very very simple simplistic way the system works Sorry So this morning you can see that We are holding this gray line on isp So what it means until we don't break that gray line and we don't reject There's no short play Okay, that's the first thing. It's very very simple the way that I made it But it's easy to understand. It's really, you know, I always say I uh trading has to be simple if you really want to make money. It doesn't have to be complicated With my partner we made over 80 algorithms, you know for our We say our trading system. That's another thing But the concept when you're trading is that has to be simple, especially if you want to trade more assets at the same time So over here we have instead i'm going to put a one minute chart We have meds remember we're looking at those levels. Okay And you can see again, we held all morning over here this gray line You can see how this is repetitive Okay sorry and Then we have apm That it faded over here So remember the levels that we're going to trade probably is going to bounce from the three seven over here Okay, so we're going to look for that Okay, let's go back over here with our AMD So this will be the first one at the gate Uh, I'm not going to leave over here traders these uh These errors, but remember Okay, we're going to see a breakout and then only in the breakout we're going to trade on the bounce Or we're going to see a pop-in fail of that pre-market eye and unwind over here We have a few minutes to go time to focus Time to focus over here Again for traders that are part of the room alert if you see setups. Okay That is still bouncing Okay So we have over here traders two minutes to go A isp pushing up again around 10 15 10 30 we're going to have a recap So Don't go away One minute to go A isp is direct to that ten dollars If you break that Then we're going to look for the 12 plus The AMD wash over here another thing traders Remember always risk management Okay, so use your stop loss Now let's go 30 seconds Okay, open over here Starting to watch over here for a cap pattern on AMD or a v pattern over here in AMD Tesla pop remember our levels A fast spike over here pop-in fail on ASP A isp so passable on wine to a 20 isp for now System on the over you can see over here. This is the long play on the over Exactly when it triggered to 10.70 on a AMD Okay, on the over you can see over here forecast system alerting the long Now we set the stop break even otherwise first target to 12 Very fast cup pattern v pattern over here. That's your long play. All right So Remember what I said before the open look over here for the forecast This is the entry timing when we have this reclaim And also book map once we have the reclaim of 210.80 first target to 12 AMD keyboard. Did you get it diana? to 10.60 Now we have the first target exit over here half the position to 12 Take half the position trailed more to 11 and 40 And by the way a isp remember what we said We're going to look for that a 15 bucks a 15 bucks over here fail In the meantime nothing to do on nvidia Tesla waiting and q Still pushing let's see coin holding the v-wap A isp j lines i f bd. Let's look for a jalan rejection over here So if you took over here And you're part of the room remember read the disclaimer AMD if you took it Right here on youtube and say i amd We have a pop on cells So strong you can see the volume over here AMD making higher lows Well done traders Usual on the over pattern right you can see over here on the over And book map giving the same pattern. So that's always what we want over here That's your play Okay, this over here. That's your entry timing Okay, if we break over here the 211 40 take out One fourth more and then you're going to be having the only one fourth left which we're going to trail 211 AMD still pushing star watson over here nvidia for a long play We're going to shift over here nvidia for a long play soon Let's see if this is going to be a long play. So look at nvidia We have to break the 880 with volume for now done anticipator here any long And by the way for who's looking over here to trade this Give it a second. We want to see a consolidation over here above Dip dip dip ready to go ready to go ready to go over here Let's see if it dips Then I will show you how to trade isp from the top tick I know some traders in the room took it. I want to share with you how to do it Dip over here nvidia Tesla giving a short setup 180s We're in video here Not yet long You can see there's no book map over here We're going to do this for practice with you traders over here. So we're just going to Simulate a long play Let's see if this is going to cut pattern 11 seconds to go So if we break 880 with volume, that's going to be your long, okay If instead fails Nothing to do anymore Simply spectacular over here a isp Again, I'm going to share how to take this But first let's focus on nvidia Very good charlie ferricks and teabor taking amd beautiful guys fake break done over here long play Now long long long long over here There we go. That's it. Boom. And now wrist break even boom. We got it Okay, and then you start selling a first partial. That's it traders. That's it sell over here a 83 Half position put the stop break even If we fail below 880 out everything in the money, okay, that's your play So you have to be super quick to do this But that is exactly your play Now if we fail we're gonna short it Got it So that is your play so Wait a second over here And start looking for a hard time frame like a five minutes or three minutes Possible short incoming over here Take a short over here starter a 79 and 50 just right now Okay So a 79 and 50 take the short Cover here partial Take partial out a 76 and now we're gonna hold it Okay traders this over here NQ is fading We want to look for an fft. You can see the system over here is telling me Go for a short side. Okay. That is the system telling me go for the short side exactly when we had this over here So we can wrist break even a 79 and 50 And that's gonna be the stop loss a 79 and 50 if you break a 74 you have to have probably a 70 a 68 today Okay, so below j lines tp a 74 then a 70 risk a 79 and 50 This is really not for beginners, but I'm sharing with you what we're doing every day in the trading room NQ fading you stay with nvidia fading and q fading you stay with tesla and all those I would say heavier stocks for the day I want to see some good trade on isp and vita for the day and also md Ifbd i'm just going to share this one second We had book map and we had the system you can see over here gap and crap And the system gave us the short exactly on this red over here Here seven dollars remember when I alerted gap and crap it was over here and that is your target Very good. Probably two or three are a risk reward ratio Okay, getting back to nvidia stay with the play Until break even give it a little bit room Lower high Stuffed is gonna fail is gonna fail over here. You want to see a fail of this a 76 Now put the stop break even a 79 a 79 and 50 Remember we're trading f50 setup. You can see the setup over there alerting you so it's everything is very so systematic tesla from the 180 right now 178 50 remember the lure we gave We still have over here nvidia holding So max risk break even Because also nvidia is trying to bounce Okay, so nvidia bounce and q bounce md bounce md new highs over here And that is your break even in this case on nvidia md still pushing strong envy the no position right now We're gonna look at a isp And why that was a short play well very easy traders Look what it says in the system over here Gep and crap came up 77 per six fader And also You have you see this j slim You see the red arrow the red arrow over here tells you to short exactly over here Let's see if bookmark was confirming as well So remember that setup we traded on md We traded the under over and over here. We have what we have a rounded cup so you can see the over under Breakdown and then fail Okay In beta over here holding the zealons and pushing It's a long play on nq long play on nq At 18 098 Long play on nq This trading system over here that you see will be ready soon in a couple of weeks So everybody can actually trade it with this and with bookmark together That will be a crazy guide Why we alerted the long over here on nq because the system's telling me the long So you see over here that We have this This is one of the patterns that we like to trade So we like to take the long over here. We need to break this resistance. This is the target And if instead we have to fail that's the cut for a scratch Okay, so if now this holds this level 96, we're holding the long if we break we're out Very systematic T bar is a clear buddy tesla is still a fader. Okay, tesla is not a long is still a fader over here Making lower highs lower lows Is very uh, I would say counter trend versus nq ISP Beautiful selling pressure over here again Why we sold over here jaylon rejection and the sellers over here you can see on bookmark Same as IFBD nq break even And now you think this is the backside on ISP. No, it's not the backside ISP can still give some traps. Okay, so A ISP pardon A ISP no backside yet The trade we took at the gate is a simply j slim and it's what it's a Gap and crap pattern you can see over there in the forecast The pattern tells you trade short of the pre-market IPM H But no backside yet Uh threshold. Yeah that buddy. Yeah obvious and Thank you. Ismael Uh, good morning comestas So remember what we said tesla is not a long play. Why the same setup remember the same setup we saw on Um A ISP saying it's a j slam. It's a short with that arrow. You can see over here. That's the short It's like the same over here, right? Look It's like the same over here this That's our short came over here And that's tesla until tesla is making these lower highs lower lows. There's no play over here for a long We alerted this 180 short this point over here. Okay, so t-bar Everybody. I hope you're short of 180 William are you sure buddy? Target price 177 previous low. We're gonna also put over here bookmark because it's extremely useful To see That levels sorry trees. I was running tesla book map on another uh monitor remember a isp Always wrist max and break even this can even push squeeze everybody and halt. Okay So 177 definitely is our target If we break that you stay with 175 But remember what we said in pre-market. We're gonna look to short or this level Of course, we are just above or this level or this level It came over here pop and feel this level the rejection that we had of this level If you go back you can listen to the Pre-market the rejection that we had of this level. This is where we have the short play And the arrow over here that tells us go short j Okay, md t-bar. You're still long. Very good, buddy insane play over here uh another long play on nvidia That came up but unfortunately we missed it and another play over here long on nq Why i'm saying that well for who knows how we train in the room Break over here Nice inside bar push and then right away break even if this doesn't work Let's go back on tesla If you're short traders on tesla Write down that you're short on tesla. I see over here scissor Is short very good play, buddy very good play traders So I like to see over here plays Uh nice short over here Okay, you waited like I would say the easy play really the jaylon rejection over here very easy play Let's see over here some other plays.   Remember these can always squeeze Jay you're short over here on uh On tesla push or tesla jay. Remember we are working for those 20k months. Okay, so I'm not any more satisfied for the 10k months now. We want 20k months Time to step up the level buddy. So No pressure And then you can see from that 177 How they started to push strong over here I want to put over here another book map for you traders. Just give me one second, please I was trying to put Another chart I cannot put this So tesla over here hold your short For a isp with a jaylon rejection. We're gonna cover that soon Okay, so let's go back to a isp There we go Uh, why i'm saying that we had a jaylon rejection very simple Uh price popped to the here into the jaylines. You can see over here bearish and gold thing And also on book map. This is one of my favorite setups very easy price buyers stay away from the short We top of the here into this big heat map soaks Back side of the move and that's your short. This is one of the best play You can trade in the market Use book map the trading system together and that's your play. Okay traders. So Example over here Well done, buddy Welcome back. So this is a setup Jaylon rejection with big heat map Perfect epic So coin jaylon curl and q fading So it should bring down the market if you're long on mv d AMD know that you have to trail Because in q is fading I have bt no more plays.  It's a short. We're staying there for the six dollar target And this is essentially what we have in the small cap land, right? They pump in the morning And then once we have these setups Like this gap and crap today. It simply dies So let's check over here. What else we have a isp Is fading i fbd faded holo We had a pop in 930 totally missed it Totally missed it was super fast And also very low liquidity pump and dump Cells over here now they get been crap. You can see they really touched the jaylon and faded And again, you have to be ready on every single one of this You see again the system telling me to short Same on tesla Same over here that we had before an a isp same on cells. Okay Jay slamed over there tells me to short nkg n Gap and crap we had the target now we are not looking anymore to short apm this is the one that traded over here before our friend And It took some scalps I don't see over here any play apm over here is Three dollars And then also we had meds meds another jay slamed so you can see another system Saying shorting over here So we had four on four based on the system using bookmark together Okay, let's go back over here and check on tesla nice market Really nice market over here NQ is holding the view up in the five minute jaylon. So we could have a stall But tesla still making our highs lower lows. We said below 177 start looking for the 175 okay, so this is tesla and beta also pulling back md pulling back Only coin over here Is pushing remember traders at 10 o'clock. We have some data beautiful move over here from front neem another trader nailed over here Simply nailed tesla. So well done buddy Okay, so you short over here at the top And then came all the way down very very good trade proud of you Well done So let's see if we have other stocks playing or tickers No play for now on nq There's the old amd at the v-wap. So let's see if we're gonna have an amd another re-entry So we're gonna put over here amd A crack over here the v-wap Prepare for our long play if we get to the 211 50 Or we claim very fast over here the 213 Okay for now sellers so wait envy over here Possible long play There we go. This is your long on envidia at 881 and 18 That's your long on envidia Exactly here Why the system is telling me to long? And if we fail the 881 in 50 or even 881 that's a stop break even okay, so that is envidia Jaylon curl 881 and 50 the risk is 881 So we're very tight risk We need to see over here follow through nq is not helping for now, but it's still Very go a very good setup for the riskable ratio And that's your exit to a here 81 so small spread stop And that's how you have to do it. Okay, so remember it pops can break over here at this level And then you simply take out the position for a scratch rate for a minimal loss It's very important to see once The breakout occurs of that 181 50 sellers Join and you're getting out of here Thank you fading wouldn't look over here anymore for a long place Try to hold over here at tesla That's important. So Doesn't matter to have some stops.  So simply stay short. Okay, so Nice over here heavy selling pressure No, no, no, just simply hold over here tesla 175 is going to be the target There's no long play over here Yeah news coming over here. So remember So we're going to stay over here and focus on tesla Actually that line that I made is just to show you where you should trail I'm going to review as well But now with a chart it's only looking over here in my scanner. So we have a isp We made a pop 931 Now it's 684 Very Fast over here, right the poppin fail Very very fast the gate. Remember we shared how to trade these I don't see the reason why you should cover everything on a isp for me.  You can risk now the Six fifties. So you have a tight trail I really like these pops into the zealands traders like very very low risk and easy faders I believe the the best play right now Tesla still making our highs over lows. You can see he's breaking down his heat map 175 we have almost 400k Volume over there look that liquidity 358 400. That's that's a pretty good one Remember when we trade using book map using the dx feed we have all the routes But we don't have arca if you need arca you need to take the The other Data feed which is omni feed Uh, this is my personal. I've tried both and I feel like this feed is more than enough So I've always been with that even if I tried omni feed for You know some months just to evaluate if I could use two at the same time or if omni feed was giving something more Then dx feed, but it was not like that So I would invite instead both that the feed to incorporate even the other routes so to make it more complete but This is just to be you know transparent Uh, holo. We had a simply fast pop and fail clz This morning was a fast at the gate another gap in crap And all these they gave only a jsling Okay, start watching the nkg nkg and sorry nkg and We could have a long play So start watching nkg nkg A consolidation above 150 And then a cup Tesla coming Nvidia still making lower highs lower lows apm start watching apm for a possible over here long play Before longing on apm. I want to see a reclaim of four dollars Not yet for me So we had a daily level at apm. This is for the small cap trader. They are still on that Quadrillion eddy short ake prezzo apm for who was short this morning. I'm just going to put it over here one second For the small cap trader that asked me in the dm Okay, the daily level you can see over there was at six Okay, this between six and six fifty that was the daily level and uh And then we had that stuff if you could see the The stuff at six dollars Okay, that five eighty six dollars over here You have to wait that, you know, you see some red prints The risk is above six fifty and then you start looking for it unwind And for me, the wine this morning is going to be the two dollars mean this went down for a 50 percent From six till three and now giving also another short You can see over here VWAP rejections is right now apm Okay Let's see rvsn rvsn Nice long buddy. Nice long Nice move rvsn. I missed this this morning Look what a what a move traders from Two dollars to four Yeah, I like to be here this VWAP That's a nice play also here Let's look at meds We have some traders over here on meds Meanwhile tesla continue to hold it Okay, you can scale out over here 175 now we're looking for 173 But meds continue to hold it again over here with a daily level at Two daily levels this morning. You can see the the 12 dollars in 20s. Okay more or less And then we had this This other level At 14 So you're trying to wait for the first trend line break And you can see over here what we formed remember we spoke about this in In pre market sharing why meds over here was a very good short And you can see that big heat map over here hitting at 14. You can see this level So we broke that resistance Coming to the 14 and then Faded from there all the way down Now it's holding this 11 It's below the open level So for me until we are below this level over here 11 50. This is still a good short We're in this trend line break Target nine dollars over here Okay, so Try to be a little bit of patient We're here Any question traders, uh, you can share your charts if you're part of the room In the members room, okay, so That's always welcome If you traded this morning with us in video md tesla nq we traded in q a isp fbd meds apm Feel free to share your charts. This is what actually we focused on Let's watch over here and k gn And let's put also back over here at tesla That's a still a lot of selling pressure So remember we have that 172. I would like over here now the target This is the chart is still unwinding and you can see here Okay where we had the play from this level And then confirmation trendline break and our You can see the square over here, right? That's our confirmation for sure. Okay, and k gn buddy. It's not a long. I can promise you that In order to have a long we need to see a reclaim of 140 145 At least 30 minutes of consolidation then we can take a long not for now Paula fontan sick trade. This is what I want from you So when we say traders that the system of retraining is mechanical It means this I'm gonna share over here because this really Is what I like from my team Okay, so you can see the trade over here got The shorter this level so into the 180s And then all the way down over here still trailing beautiful beautiful job over here Well, let's see. This is t board. So it took the long over here at the open scaled out And then over here, I don't think he took this part And then over here he tried in a little stop. Yeah, that's that's a very good trailing This is fabian So he shorter stop beautiful stop. That's what I want from a trade if that is not going And then he showed a cover. I hope over here. He didn't cover everything but was recycling. Let me know brother And Over here Another good play. This is on google Uh, I should have I should have held longer Uh, yes, definitely Essentially traders You see this band that we are using over here, right and book them up if book room makes lower high And you have this band over here. Let me let me share with you if this band over here is Unwinding and you can see it's always stopping the price And you have over here lord highs over lows on book map mean try always to hold over here. Okay, don't don't really Get out too fast Okay Because essentially, you know buddies will have you know, 100% win rate And whatever try to hold as much as you can When the trader is working in your favor But proud of your work traders really really proud It's still not along on NKGN Thank you scott Okay, Fabian is not important at the big size. It's important for me that the process is correct So I also studied other traders charts and The more we can do this practice, you know, the more it's going to be Automatic for us to take these trades Okay, so let's see what else we have. So NQ fader right now tesla fader md fader and invidia holding coin also fated A isp going to target. I've been the already target sells already target NKGN holding but not along yet apm over here We have the stock holding the open level Is this a long no This is for me a short over here that I will confirm soon on apm apm is setting up for a short five three two one Short apm confirmed 345 right now short apm 345. This is for my team only Set the risk as we said That in the money at 370 apm So we're gonna put book them up over here So we have apm at 345 short ad TP is going to be 250 so let's see over here. Okay, so 345 is where we took the short. You can see the system alert over here at the short We had the first entry this morning on this Zone up here Then we had the second answer over here Now what we're looking over here is a breakdown of this big heat map at 330 And we have this trend line So I want to see a breakdown of this I want to see over here this going away. It's a 50k, right? Sometimes they do this to scare traders But we're holding over here short Anybody this morning short apm Kyle is short apm very good, buddy We could have a wash over here. So possible washing coming Andrea, welcome back beautiful Over here on tesla very very good Okay, it's dipping into this 333 331 331 Let's see 50k if they're gonna go traders 48k soaking a little bit That's mean soaking. Okay when it's absorbing all the price that has been sold at that main support We have a lack of sorry a lot of liquidity Tesla bouncing on this 174 why because in q is bouncing Sorry traders if here is some noise, but uh, they're starting to build academy just next door to me for trading academy What do you think we're gonna break this 330 for an unwind over here on apm or this is gonna spy till 370 We like also to hear your opinions So you can see that it's still holding a support, right? But the support is actually hold it's holding over there So over here life is saying is we're gonna break I would say buddy if this is gonna bounce it gonna squeeze probably till the 360 So Be very careful in case we start seeing liquidity and kgn and kgn. Sorry. Let's see over here in kgn Quadrivian, okay in kgn over here giving a long play at 157 I can share also why It's a long play You can see that over here. Sorry this one You can see the system is giving me over here this With a high volume The square that's your long play Breakdown over here apm Careful if you reclaim fast We need to see this lower, okay? So it's still not a very good risk reward if you're gonna get out here We have to hold for much lower per me ragazzi Se non fa trabocchetti questo va due dollari.  Okay And kgn don't try to short over here The only level you want to trade short and kgn is at 195 two dollars And avoid it if this is gonna have five million five bars Sorry five minute bars with at least one million volume. Okay, so we have it here in kgn Only wait two dollars Only short when volume on five minutes below six hundred k Okay per five minute bars Molto bene dario guarda quella zen and curl inside bars in three minuti bari ti vole vedere la rume Abbiamo spaccato veramente in questi tre zoni in pre market dalle dieci italiane Abbiamo fatto td con tigono cazzata, non puoi vedere tutti tre con si è dentro Abbiamo fatto tipo in tre zoni una ventina di trades Biamo avuto Un veramente the killing pre market con his mocaps. Sorry traitors over here So sometimes it's nice to talk italian Tesla over here don't try to longer right now. Okay The main market is still fading over here I have BD popping, J-Lines, NVIDIA over here reclaiming. I'm not going to long over here, NVIDIA traders at the VWAP open level. So, wait. We're getting to 10.30. Thank you, Charlie. Grazie, Charlie. You're welcome in Italy. Dario, are you in Italy right now? Quadrivient? Yeah. Quadrivient, I think. Perugio, if you tell me well. I still can't remember. Verona. Two hours from me. Cassate cannoli. So, it's already 10.30. We're 90 minutes in. If you have questions, please send over. Dario was amazing to be in Sicily when I was over there. I remember Messina and all those places, the islands. I remember I was eating this, the brioche in the morning with cappuccino and ice cream. That was amazing. Traders, you're not in Italy. You have to come over here even only for the food. Okay, so let's review two things over here on Bookmap. I received two questions. I can't go over. So, first of all, to ask me, J, how can I trade using the Trade Control Panel? So, you have to open the simulated account or you open the live account if it's disconnected to a broker. You select over here Trade Panel. You go over here on the left, you put over here a chart. And then you can use this chart, dump or both. I like chart. Then select over here the size or you can even type it over here. Cancel the orders, flatten everything so you sell or you close the entire your position. All these are buys or these are sells or even too short. And the other question is how to set over here a book about times and sales. So, right click, where's the COB, current order book, configure column. You go over here where it's written plus. Go down over here all the way down because you can see it. You think it's only this, no. You go down, it's written times and sales. And then you click over here, create. And what I like over here to do is put the minimum size. For example, I'm trading a small cap. I want to see at least, sorry, minimum 5,000 shares. I don't want to see that 100 shares passing. So, you can see only the block orders. So, even 10, 20 K. You can select max size and you do like this. Drag it all to the left. And of course over here now we don't have enough space. But it will be like this. Okay, traders. Okay, NKGN over here also. We had the HALT, very good call, Dario. Beautiful. Just to show you traders. Nice over here extension play. Jaylen Kerr with an inside bar. That is what I was waiting for. All right. So, again, thank you for being with us. If you want to just learn Italian or talk about Italian food or just simply study and learn book map, join us next week. Reach out if you want to be mentored or if you want to be part of a serious trading room. Okay. If you're Italian, you're going to have 30% discount. Just reach out and you have 30% discount. Sorry, traders. Next time we're going to do something for the American traders. Kidding. And for everybody else. Have fun, take care, and good luck for your trading. Thank you.