reasoning. If arbitrage was indeed the cause of mean reversion, one would expect to see a quantity respose of trade flows at the … arbitrage, which requires a minimum divergence before the costs of arbitrage can be recouped. In this paper, we examine this … significant evidence of trade flows changing at the points of mean reversion. Alternative explanations of mean reversion, notably …

This paper sets forth the foundations for a transactional approach for the performance of arbitrage in foreign exchange … markets. Firstly, we review both the standard model of financial arbitrage and the so-called covered-interest arbitrage … expand on its main tools of analysis, namely differential rates, residual information sets, arbitrage gaps and transaction …

, even after moneyness scaling has been performed. This presents possible arbitrage opportunities on the (L)ETF market which … can be exploited by traders. We build possible arbitrage strategies by constructing portfolios with LETF shares and … investor. A dynamic "trade-with-the-smile" strategy based on a dynamic semiparametric factor model is presented. This strategy …

fragility of these ETFs. We focus on corporate bond ETFs and examine the role of authorized participants (APs) in ETF arbitrage …. In addition to their role as dealers in the underlying bond market, APs also play a unique role in arbitrage between the … bond and ETF markets since they are the only market participants that can trade directly with ETF issuers. Using novel and …

importance of regulatory arbitrage as a driver of cross-border bank flows since the global financial crisis. However, in the euro … area, arbitrage in capital stringency was linked to lower cross-border lending since the crisis. …