Regulatory arbitrage

Legal and arbitration proceedings

LEGAL AND ARBITRATION PROCEEDINGS

I did comic book arbitrage.

Otherwise, global financial markets will be destroyed by regulatory arbitrage.

Reverse arbitrage meant capital outflows from the Chinese mainland.

But having two prices for an identical dollar creates enormous arbitrage opportunities.

In an economy with flexible interest and exchange rates, arbitrage eliminates the exchange rate spread quickly.

Eyes are opened the illusion of arbitrage between efficiency and solidarity fades.

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Exchange rate arbitrage by mainland importers and multinationals creates upward pressure on the CNY and downward pressure on the CNH.

There is evidence about regulatory arbitrage existing due to differences in the regulation of the sale of PRIPs through different sales channels.

arbitrage operations diverting local production towards the Union while sugar bought on the world market is substituted for domestic consumption.

That difference led to active exchange rate arbitrage by mainland importers and multinational firms one form of capital inflows from Hong Kong to the mainland.

Through pension funds, investment funds, and arbitrage (or hedge) funds, shareholders became well organized and seized power in developed countries firms.

The LTRO enabled Spanish and Italian banks to engage in very profitable and low risk arbitrage in their own countries bonds.

Family support in adversity is greater in some parts of the Community than in others, while the propensity to save windfall gains varies, etc.

The fact is that we need fewer efficient markets theorists and more people who work on microstructure, limits to arbitrage, and cognitive biases.

Moreover, the higher the gap between official interest rates and the higher rates on mortgage lending as a result of macro prudential restrictions, the more room there is for regulatory arbitrage.

These late movers were also likely to have been sophisticated electronic or institutional traders some were probably using arbitrage based strategies that relied on the futures market for a calculation of the fair price.

Later in 2000 Google launched its pay per click service, Google AdWords, which is responsible for the widespread use and acceptance of pay per click as an advertising channel.

Such a policy choice, which is often implemented by law or regulation, leaves very little if any room for competitive arbitrage by operators between the two options.

As a result of arbitrage, the currency exchange rates, the price of commodities, and the price of securities in different markets tend to converge.

1.11 The EESC points to the need for greater harmonisation in the e book market to prevent arbitrage and to move towards market integration.

The integration of the money market was a necessary precondition for the implementation of the single monetary policy , since it enables arbitrage to eliminate any cross country differences in money market interest rates .

Today, too, there are some great opportunities for this kind of policy arbitrage, if more countries would only take the time to learn from other countries successes.

Financial regulation and supervision will surely be strengthened, but they will remain national in character, with little safeguard against cross border spillover and regulatory arbitrage.

International solutions are critical to prevent cross border regulatory arbitrage for example, the circumvention of host country regulation by borrowing directly from the parent bank.

1.2 The EESC deplores the fact that because the conditions governing market access and prudential requirements have not been properly harmonised, cases of regulatory arbitrage may result that lead to distortions of competition.

Given the potential for regulatory arbitrage and continued innovation in the retail investment market, continued monitoring of developments will be vital, including evidence based assessments of the future scope of the regime.

This implies an arbitrage opportunity for governments borrow massively at these low (or even negative) real interest rates, and invest the proceeds in positive returning projects, such as infrastructure or education.

By contrast, the LTRO allows Italian and Spanish banks to engage in a very profitable and practically riskless arbitrage, but has kept government bonds hovering on the edge of a precipice although the last few days brought some relief.

This implies an arbitrage opportunity for governments borrow massively at these low (or even negative) real interest rates, and invest the proceeds in positive returning projects, such as infrastructure or education.

Faced with such a hostile environment, Chinese private entrepreneurs have been forced to engage in institutional arbitrage taking advantage of efficient Western economic institutions to expand their business (most export oriented businesses are owned by private entrepreneurs and foreign firms).

1.4 The Committee considers that addressing arbitrage is of key importance to financial services reform2, and therefore welcomes the detailed package of measures3 and, more specifically, the strengthening of the prudential banking framework for limiting contagion and arbitrage risks.

1.4 The Committee considers that addressing arbitrage is of key importance to financial services reform2, and therefore welcomes the detailed package of measures3 and, more specifically, the strengthening of the prudential banking framework with the aim of limiting contagion and arbitrage risks.

First, thanks to an effective albeit porous capital control regime in China, short term hot money (capital coming into China aimed at arbitrage, rent seeking, and speculation) could not enter (and then leave) freely and swiftly.

The EMU wide interbank market will require , first , that credit institutions have both the incentive and the capability to manage their liquidity positions efficiently and , second , that arbitrage operations can be executed easily and swiftly throughout the euro area .

Articles 18 to 25 Amendments of sectoral legislation To avoid regulatory arbitrage between the sectoral supervisory regimes and the financial conglomerate regime as well as overlap and underlap between the different supervisory regimes , there is need to amend and to supplement to a minimum level the sectoral regulations ( see pt . 1 ) .

3.3 The possibility of regulatory arbitrage between less strict and costly rules and other, more prescriptive ones, would distort the market, creating obstacles to the achievement of a genuine, transparent and efficient single financial market.

4.5 It is based on an economic risk sensitive approach, which aims to ensure that the true underlying exposures of risks and risk mitigation schemes are properly reflected, thereby eliminating regulatory arbitrage opportunities that can distort and weaken the protection available to policyholder.

5.6 It is based on an economic risk sensitive approach, which aims to ensure that the true underlying exposures of risks and risk mitigation schemes are properly reflected, thereby eliminating regulatory arbitrage opportunities that can distort and weaken the protection available to policyholder.

However , there is always a trade off between minimising costs and meeting other objectives , such as safety . Minimum safety and efficiency standards and recommendations are therefore warranted to guide stakeholders in payment and securities clearing and settlement systems in making their choices , which , in turn , fosters competition between payment systems and among securities clearing and settlement systems , and helps to avoid regulatory arbitrage .

Taking only government expenditure on administration and infrastructure, the differences are much less marked and the countries appear in a different order 17.7 of GDP in Spain, 22.2 in Italy, 22.6 in France, 23.8 in the United Kingdom and 24.2 in Germany.

It is on these fundamental grounds that the Committee on Budgets today finds the avoidance, in this amend ing budget, of the central issue of financial reform to be totally unacceptable, and it condemns the continued recourse to ephemeral solutions which no longer involve only one Member State the United Kingdom but which are being perilously extended in this amending budget to include Germany as well.