Market Liquidity, Fintech Innovation, and Risk Management Practices

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Financial Technology and Innovation".

Deadline for manuscript submissions: 1 September 2025 | Viewed by 2791

Special Issue Editors


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Guest Editor
Business School, University of Dundee, Dundee DD1 4HN, UK
Interests: behavioural finance

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Guest Editor
Department of Accounting, Finance, and Economics, Middlesex University Business School, Middlesex University, London NW4 4BT, UK
Interests: corporate finance; financial market microstructures; market-based accounting research; economics

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Guest Editor
Faculty of Business and Law, University of Northampton, Northampton NN1 5PH, UK
Interests: finance

Special Issue Information

Dear Colleagues,

The Special Issue on "Market Liquidity, Fintech Innovation, and Risk Management Practices" aims to explore the dynamics between market liquidity, the rapid evolution of fintech innovations, and the evolving landscape of risk management in financial markets. As markets become increasingly digitized, the role of fintech in enhancing or challenging liquidity has become a critical area of study. This issue seeks to investigate how these technological advancements influence liquidity across various asset classes, from equities to cryptocurrencies, and their implications for market stability.

Moreover, the Special Issue will look into the risk management strategies employed by financial institutions to adapt to this new fintech-driven environment. It will examine the effectiveness of traditional risk management tools in the context of automated trading, blockchain technology, and artificial intelligence, while also highlighting emerging practices that address the unique risks posed by fintech.

By bringing together research on these interrelated topics, this Special Issue aims to provide a comprehensive understanding of how fintech innovations are reshaping market liquidity and risk management. It seeks to offer insights for academics, practitioners, and policymakers to better navigate the challenges and opportunities in modern financial markets.

Prof. Dr. William Forbres
Dr. Ann-Ngoc Nguyen
Dr. Xuan Minh Thuy Nguyen
Guest Editors

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Keywords

  • market liquidity
  • fintech innovations
  • risk management
  • financial technology
  • algorithmic trading
  • blockchain
  • cryptocurrency markets
  • high-frequency trading
  • liquidity risk
  • systemic risk
  • quantitative finance
  • automated trading
  • artificial intelligence (AI)
  • machine learning (ML)
  • financial regulation
  • market volatility
  • financial stability
  • behavioral finance
  • digital assets
  • financial market microstructure

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Published Papers (2 papers)

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Research

21 pages, 834 KiB  
Article
Nexus Between Fintech Innovations and Liquidity Risk in GCC Banks: The Moderating Role of Bank Size
by Laith Alshouha, Ohoud Khasawneh, Fadi Alshannag and Khalid Al Tanbour
J. Risk Financial Manag. 2025, 18(5), 226; https://doi.org/10.3390/jrfm18050226 - 24 Apr 2025
Viewed by 478
Abstract
Fintech is a modern phenomenon that is transforming the banking industry through innovations that streamline financial processes and improve efficiency. The increasing adoption of disruptive technologies prompts inquiries regarding their potential to either bolster banks’ stability or expose them to various challenges and [...] Read more.
Fintech is a modern phenomenon that is transforming the banking industry through innovations that streamline financial processes and improve efficiency. The increasing adoption of disruptive technologies prompts inquiries regarding their potential to either bolster banks’ stability or expose them to various challenges and risks, including liquidity issues. Hence, this paper analyzes the effect of fintech innovations on liquidity risks in commercial banks across the six GCC countries (comprising a major financial market) during the period from 2018 to 2023. To develop a panel data methodology, we chose a sample of 26 commercial banks. The findings from our analysis indicated that (1) fintech innovations have a negative relationship with liquidity risks and (2) the size of the bank moderates the connection between fintech and liquidity risks (whereby larger banks significantly affect the relationship between fintech innovations and liquidity risks). Full article
(This article belongs to the Special Issue Market Liquidity, Fintech Innovation, and Risk Management Practices)
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11 pages, 2135 KiB  
Article
Volatility Transmission in Digital Assets: Ethereum’s Rising Influence
by Burak Korkusuz
J. Risk Financial Manag. 2025, 18(3), 111; https://doi.org/10.3390/jrfm18030111 - 21 Feb 2025
Viewed by 696
Abstract
Within the framework of high-frequency volatility modeling, this study investigates the realized volatility spillover dynamics across major cryptocurrencies over an extended period of time. Using a Time-Varying Parameter Vector Autoregression (TVP-VAR) model of the realized volatility (RV), this work constructs the Total Connectedness [...] Read more.
Within the framework of high-frequency volatility modeling, this study investigates the realized volatility spillover dynamics across major cryptocurrencies over an extended period of time. Using a Time-Varying Parameter Vector Autoregression (TVP-VAR) model of the realized volatility (RV), this work constructs the Total Connectedness Index (TCI) and Pairwise Connectedness Index (PCI) to measure the intensity and direction of realized volatility transmission within this digital asset network. Our findings reveal a consistently high level of spillovers among these leading cryptocurrencies, with notable peaks during periods of global market turbulence. Notably, Ethereum emerges as the most influential volatility transmitter, challenging the traditional view of Bitcoin as a primary driver of volatility spillovers. This reflects Ethereum’s pivotal role in decentralized finance (DeFi), decentralized applications (dApps), and its growing trading activity, suggesting a shifting influence in the increasingly diversified cryptocurrency ecosystem. Full article
(This article belongs to the Special Issue Market Liquidity, Fintech Innovation, and Risk Management Practices)
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