Join IBM for a gathering of senior risk and compliance executives to explore what strategies financial institutions are using to manage risk, improve processes and outcomes and meet regulatory and co…

The annual Quant Summit USA returns to New York on July 17-18, 2019 with an agenda highlighting the biggest trends in the industry and showcasing the latest research in these areas.

Join IBM for a gathering of senior risk and compliance executives to explore what strategies financial institutions are using to manage risk, improve processes and outcomes and meet regulatory and co…

This two-day workshop has been designed to delve into best practice approaches to building a model risk framework. Attendees will be equipped with a thorough understanding of model risk now and into …

View our latest in market leading training courses, both public and in-house.

This is the 19th year of Asia Risk magazines awards, which recognise best practice in risk management and derivatives use by banks and financial institutions around the region.

Energy Risk Asia Awards 2019 submissions are now open! Submission period ends on 23 August 2019. The Energy Risk Asia Awards recognise excellence across Asian commodities market as well as providing …

Being recognised at the Hedge Funds Review European Performance Awards 2019 is the high point of any single manager or fund of hedge fund operating in Europe. The awards are recognised as the most pr…

The Risk Awards are the longest-running awards of their kind and are widely recognised as the most prestigious for firms and individuals in our markets.

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This white paper provides a review of how markets behave before and after Fed rate decisions and explores the impact of Fed rate decisions to market pricing.

This white paper discusses the steps to enabling full compliance with current regulations in Asia-Pacific. It further examines the challenges associated with new regulations and establishing a robust…

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CCP margin buffers too big, research suggests

UBS exec: first trades via USC could take place this year

Tech-driven model risk management  Driving value and efficiency

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Search engine study shows limits of alternative data

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IFRS 9: peripheral EU banks hold most impaired assets

EU banks credit risk estimates continue to fall

Podcast: Gregory and Chung on wrong-way risk modelling

CVA wrong-way risk: calibration using a quanto CDS basis

Libor replacement: a modelling framework for in-arrears term rates

Capital allocation under the Fundamental Review of the Trading Book

Edited by Emma McWilliam, Matt Thomas and Howie Timothy

Central counterparty anti-procyclicality tools: a closer assessment

Default cascades and systemic risk on different interbank network topologies

Blockchain: transparency for energy markets in Chile (Prologue)

Decentralized bottom-up energy trading using Ethereum as a platform

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In derivatives markets, arbitrage is the certainty of profiting from a price difference between a derivative and a portfolio of assets that replicates the derivatives cashflows. Therefore, derivatives are priced using the no-arbitrage or arbitrage-free principle: the price of the derivative is set at the same level as the value of the replicating portfolio, so that no trader can make a risk-free profit by buying one and selling the other. If any arbitrage opportunities do arise, they quickly disappear as traders taking advantage of the arbitrage push the derivatives price until it equals the value of replicating portfolios.

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