anyway some expert can be called in to net those out if and when disrepencies appear in the replication. its like overnight index for a month or one month libor. they should really be the same so discrepencies should be arbed away in arbitrary size immediately for a riskless return.
what you could also do is increase rapidly the number of etfs and add leverage. temporary discrepencies in the prices will increase llike the bid offers. bring em all in. if you make new etfs you dont have to close the old ones and balance sheets can grow in a riskless fashion. im not saying this is definitely trues btw but the fed and ecb will certainly be up for it. you have to do the blowing up really because any scheme no matter how robust will be sabotaged by globalists in the real world. you will survive only if you are the top globalist. it doesnt matter what a credit default swap is worth in those situations so lehman said a lot of true words. if you have a system where you are an insurance comapny the world blows up you need the fed to pay everyone who can't pay.
my vote. this time. do not buy the fake news. theres no panic unless you are a globalist. no one needs bailing out if the stock market is a -88 for a week its all good. all the aigs can blowup no problem no systemic bs. if someones owes a trillion dollers and cant pay both go down and a globalist loses money. the amount of effort required to keep the lights on compared to the reverse repo operation funnelling all money through the banks is a complete hoax the fed can send funds straight to gm if they pull that one,. she's coming im sure,
so here would be an example. there is an etf called the vxx structured as a note. anyway said structurer has shown a willingness to use the callability of this structure which its allowed to. due to the popularity of this etf the new one issued has in the termsheet it can be called at any time by the issuer. so if you have this as a vol hedge when vix hits 30 completely legitimately you are ko-ed. (the issuer for reasons of its own is long the short squeeze) the etf trades at the level it would with no knock out it should be less than a quarter of that. these are just facts that globalists ignore.
some clown actually has to buy those vix contracts and everyone is short so thats why they wanna call it when vix rollers are under water. not their fault.
is this a hoax and would a globalist be protected from an xiv meltdown by knocking everyone out. it seems unlikely and only a globalist could think this up whilst conitinuing to print etfs.
what an etf does is remove the ability of a market to function in a granaular fashion in exchange for large global fees. the key thing though is that when they go wrong they will be bailed out. remember the globalists are many things but stupid they are certainly not and they are often one step ahead
im only suggesting risks to be aware of not suggesting a bot who mainly profits in blow ups in the market structure would be superior to stat arb in a deep moral sense btw. a lot skills overlap though and can be applied to good (stat arb) and bad causes(increase in instability entropy and order decreasing).
id like to clear up one bid offer hoax though. it is true that in chaos bid offers widen and move a lot more randomly and everyone takes in more cash. however they actually prefer it did that but in a small range because they are mainly concerned with not having a position. the risk in an actual blowup are extreme to any system like this and it will fail. its too expensive to be actually legit long vol, no hedge fund is long vol for very long. long vol is at the low of the flash you prefer it doesnt pull back. if you want to sell 1 at 100 and then 2 at 99 and then 2^2 at 98 for example this is more realistic than buying low. you all know it im just saying it.
That's weird. You must work for some secret banks. https://www.businessinsider.com/jpmorgan-has-been-poaching-video-game-coders-2018-11 https://media.thinknum.com/articles/hiring-up-at-some-banks/