The expansion of financial activity in Australia has not been confined to market trading. Holdings of financial assets in general have expanded rapidly. In the early 1980s, holdings of financial assets were about the same size as GDP; these days, they are about 2 1/2 times the size of the economy.
The conference will conclude tomorrow with a discussion of regulatory requirements in Treasury markets. Many point to post-crisis regulation as a key factor driving any recent decline in liquidity. Although regulation seems to have had little to do with the events of October 15, I would agree that it is one factor driving recent changes in market making.