Liquidity concerns still haunt Ficc

The cost of maintaining Ficc market-making operations outweigh the benefits for banks, leading to fears that a market event could have serious consequences

Market participants are growing increasingly concerned about liquidity conditions in fixed-income, currencies and commodities (Ficc), with US Treasuries and corporate bonds seen as most at risk, as regulatory changes have squeezed banks' market-making abilities.

"There has been a step change in liquidity in the markets," says the head of forex at one US bank. "The concern is liquidity is less than