The 'Global financial markets and liquidity study' explains the important role and underlying economics of market-making, and the roles played by different market participants which contribute to resilient market functioning. Post-crisis, banks have well-capitalised balance sheets (global banks' equity levels have increased by around 68% between 2006 and 2013), the ability to measure and price risk, and business models that are fundamentally based on client investment needs. Unlike other market participants, bank dealers are uniquely designed to provide clients services that require principal risk taking. This function is a vital element of market resilience during volatile events. This study describes the positive transition that global markets are making in reaction to new market forces, including increased electronification and new entrants in providing core services to support the real economy. Such diversity is a necessary and welcome development, and complements the role banks and bank dealers will continue to play in effective market functioning.