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Latency and Liquidity Risk

q-fin.TR · 2019-08-08 · conditional · novelty 6.0

A liquidity taker's latency-optimal discretion is characterized by δ*_t = 2γE_{t-}[D_T]+γ+α, the solution of a random-measure FBSDE, but the optimality proof and numerical regime contain gaps.

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  • Latency and Liquidity Risk q-fin.TR · 2019-08-08 · conditional · none · ref 6

    A liquidity taker's latency-optimal discretion is characterized by δ*_t = 2γE_{t-}[D_T]+γ+α, the solution of a random-measure FBSDE, but the optimality proof and numerical regime contain gaps.