Nov. 6, 2020
Professor published in Houston Business & Tax Law Journal
"New Funds, Familiar Fears: Are Exchange Traded Funds Making Markets Less Stable? Part II – Interaction Risks" is the final article in a two-part study and posits that these products may be introducing two “interaction risks” into financial markets due to a complex operating and trading ecosystem. First, ETFs could create information cascades, facilitate investor herding, and financial contagion. Second, ETFs could be distorting the informational efficiency of underlying asset and securities prices, and disincentivizing active price discovery, in a way that masks market risk.
"New Funds, Familiar Fears: Are Exchange Traded Funds Making Markets Less Stable? Part II Interaction Risks" (2020) 21:1 Houston Business & Tax Law Journal 1.