meet their obligations as primary dealers to participate in u. s. treasury auctions and the federal reserve ’ s open market operations. many argue that the ability and willingness of dealers to a clob protocol aggregates all executable bids and offers across participating liquidity providers in a single order book that is available to all market participants. in a liquid market, the continuous visibility of quotes and the interaction of multiple bids and offers are likely to enhance the price discovery process and market transparency. in contrast, a request - for - quote protocol, where a request for liquidity typically is submitted to only a limited set of providers, by its nature imposes a degree of market segmentation that may impede the price discovery process as compared with a clob protocol, but is arguably better suited to handle large block trades and illiquid securities. momentum detection is a strategy that attempts to predict short - run price changes based on patterns in realtime market data. statistical arbitrage is a trading strategy that typically relies on identifying mean reversion from historical relative pricing relationships between correlated assets. spread trading seeks to profit from a simultaneous purchase and sale of two closely related fixed - income assets. bis central bankers ’ speeches deploy their balance sheets for holding treasury securities and other fixed - income assets allows them to serve as shock absorbers, particularly during times of volatility. automated trading firms, on the other hand, typically do not end the day with significant long or short net exposure, despite the fact that they often conduct a substantial volume of gross transactions. 9 as a result, automated trading firms do not face the same level of capital constraints under the traditional way of thinking about capital requirements. 10 however, for the same reason, they also may not be capable of serving as shock absorbers during periods of heightened volatility, as traditional market makers are thought to do. thus, while the market may have come to rely on automated trading firms as suppliers of very - short - term intraday liquidity, market participants still rely on traditional market makers with balance sheet capacity to supply liquidity over longer - term horizons. electronic trading, including automated and high - frequency trading, has likely had a number of benefits. for one, technological advances have supported market efficiency by increasing the pace at which price discovery is disseminated across financial markets. it may also have reduced transaction costs, both through the economies of scale that large technology investments produce, and perhaps through the maintenance of narrow bid - offer spreads that automated

pacific region. the cpc shanghai committee, shanghai municipal government, financial regulatory institutions in shanghai, and policy and commercial financial institutions have always supported the pbc in carrying out its work, which guaranteed the effective operation of the institutions of the pbc in shanghai. the newly founded pbc shanghai head office will also need attention and support from all of you. by making continued efforts to improve financial services, the pbc will seek to make new contributions to economic development and financial stability. thank you!