Snapshots of Tacit Coordination in AI-Driven Liquidity Provision: A Practitioner’s Diagnostic Tool Kit

Abstract

Quickly apply original, key PMR-published papers with Snapshots—a short article companion that distills PMR research into compressed, digestible takeaways, so you can put the paper’s core ideas to work in your investment process—fast. This Snapshot article is based on research arguing that AI-driven liquidity providers can learn coordinated quoting behavior without communicating, widening spreads, increasing dealer profits, and weakening execution quality in concentrated electronic markets.