Moreover a new draft law (which is under way) confers upon the BCL a general oversight competence over all payment and settlement systems as well as payment instruments 14 . The scope of the BCL’s competence in the field of liquidity embraces two aspects of liquidity supervision. The first aspect focuses on market liquidity.
Financial market liquidity is usually thought of as a measure of the ability of market participants to undertake securities transactions without triggering large changes in their prices. While it is challenging to precisely measure financial market liquidity, it is generally agreed that highly liquid markets are characterised by a myriad of buyers and sellers who are willing to trade.