Chris D’Souza is a Principal Economist in the Canadian Economic Analysis (CEA) Department. His research interests include corporate finance, banking and market microstructure. Chris holds a Ph.D. in Economics from Queen’s University.
Staff Analytical Notes
This note summarizes the key findings from Bank of Canada staff analytical work examining the reasons for the recent weakness in Canadian non-energy exports. Canada steadily lost market share in US non-energy imports between 2002 and 2017, mostly reflecting continued and broad-based competitiveness losses.
Staff Working Papers
We employ a comprehensive data set and a variety of methods to provide evidence on the magnitude of large banks’ funding advantage in Canada, and on the extent to which market discipline exists across different securities issued by the Canadian banks.
This paper illustrates that dealers in foreign exchange markets not only provide intraday liquidity, they are key participants in the provision of overnight liquidity. Dealing institutions receive compensation for holding undesired inventory balances in part from the information they receive in customer trades.
Trades in foreign exchange markets are initiated around the world and around the clock. This study illustrates that trades are more informative when initiated in a local country or in major foreign exchange centers like London and New York.
Differences in market structures may affect the manner in which fundamental information is incorporated into prices. High levels of quote and trade transparency plus substantial quoting obligations in European government securities markets ensure that prices are informationally efficient.
The authors contrast the impact of two sources of information flow on the volatility of prices, trading activity, and liquidity in the brokered interdealer market for Government of Canada bonds.
An Empirical Analysis of Liquidity and Order Flow in the Brokered Interdealer Market for Government of Canada BondsThe authors empirically measure Canadian bond market liquidity using a number of indicators proposed in the literature and detail, for the first time, price and trade dynamics in the Government of Canada secondary bond market. They find, consistent with Inoue (1999), that the Canadian brokered interdealer fixed-income market is relatively liquid for its size.
This paper examines the daily hedging and risk-management practices of financial intermediaries in the Canadian foreign exchange (FX) market.
This paper clarifies the role and the impact of foreign exchange dealers in the relationship between foreign exchange intervention and nominal exchange rates using a unique dataset that disaggregates trades by dealer and by type of trade.
This paper investigates the effects of financial market consolidation on risk capital allocation in a financial institution and the implications for market liquidity in dealership markets. We show that an increase in financial market consolidation can have ambiguous effects on liquidity in foreign exchange and government securities markets.
- “Funding Advantage and Market Discipline in the Canadian Banking Sector,”
(with M. Beyhaghi and G. Roberts), Journal of Banking & Finance, Volume 48, November 2014: 396-410.
- "The Effects of Bank Consolidation on Risk Capital Allocation and Market Liquidity"
(with A. Lai), 2006, in Journal of Financial Research, 29, p. 271-291.
- "How Liquid are Canadas?"
(with C. Gaa), 2004, Canadian Investment Review, Winter, p. 23-28.
- "How Do Banks Respond to Capital Shocks?"
(with A. Lai), 2004, Monetaria, 27:1 p. 33-56.