No arbitrage conditions and SRR: Difference between pages

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imported>Doug Williamson
(Link with yield pages.)
 
imported>John Grout
m (To substitute an A for the C in FDIC to refer to the Act not the body)
 
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The usually assumed or expected situation in transparent financial markets, where pricing discrepancies between related markets have been eliminated.  
Special resolution regime.


So there are no remaining arbitrage opportunities at current market prices.
Provisions for [[resolution]] of failing financial institutions under appropriate legislation and regulation. In many countries provisions extend beyond banks to certain other types of institution.


Many price and value calculations are based on ‘no arbitrage’ assumptions.
For example, in the US under [[OLA]] and [[FDIA]] that established [[FDIC]] and in the EU under the [[BRRD]].
 
 
== See also ==
* [[Arbitrage]]
* [[Free lunch]]
* [[Forward yield]]
* [[Zero coupon yield]]
* [[Par yield]]

Revision as of 11:07, 13 August 2014

Special resolution regime.

Provisions for resolution of failing financial institutions under appropriate legislation and regulation. In many countries provisions extend beyond banks to certain other types of institution.

For example, in the US under OLA and FDIA that established FDIC and in the EU under the BRRD.

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