Searching for informed traders in stock markets: The case of Banco Popular

In this paper, we use several indicators of trade informativeness to search for informed traders on the final trading days Banco Popular, first and only bank resolution case date in euro area. particular, model proposed by Preve Tse (2013) estimate adjusted daily probability symmetric order-flow shock using high-frequency transaction data. Our empirical results indicate that upon anticipation a possible liquidation bank, investors reacted bad news placing more weight it Popular experienced large increases both buy- sell-orders during last when registered significant depletion its deposit base. Moreover, find evidence supporting presence inside illiquidity, especially after speculation media could face liquidation. study has important implications market participants regulatory authorities.