Illiquidity is a cancer on performance; that's the stark warning from the ECU Group's CIO, Michael Petley. He says the markets' lack of liquidity is one of his biggest trading fears. He's the latest high profile market watcher to warn of the dangers of declining liquidity, notably in the bond markets.
Veteran trader, Nicole Elliott, is also concerned. She notes that if you're looking to do a big deal, you could be fighting the market, whether you're buying or selling. She says it makes it very difficult to value what your portfolio might be worth under stressful conditions.  
Regulatory changes as well as central bank actions are just two of the reasons why there appears to be a growing and serious problem. Saxo Capital Markets' trader, Ben Ridgeway, tells us how it can affect his day to day dealings. Traders, he says, should be prepared for much more volatility in the coming months.