More information about ABC ARBITRAGE

ABC ARBITRAGE develops systematic arbitrage strategies for liquid assets, all over the world. Liquidity arbitrage For markets to be fully efficient there is a need for actors such as ABC arbitrage who can immediately detect and correct any differences in trading prices between linked assets. These inconsistencies can be due to disruptive supply and demand factors such as imperfect information. We do this all over the world, 24 hours a day, with our cutting edge technology. Statistical arbitrage This includes a wide variety of systematic strategies and asset classes from intraday pair-trading (e.g. auto manufacturer A vs auto manufacturer B) to mid-term cross asset lead-lag effects (e.g. interaction between commodity prices and inflation). Our quants build innovative models to predict short to mid-term variations and relative pricing effects of many liquid assets. Risk arbitrage Many risks affect the potential success of corporate operations in capital markets. At ABC we have developed sophisticated models that predict the probability of each new operation’s success. Our technology includes the platform to apply the models on an industrial, global scale to capture any apparent risk mispricing in the market. Derivatives arbitrage Derivatives, such as Options, are complex instruments whose pricing is very sensitive to a large set of variables and asset classes. This complexity creates an intricate web of potential pricing inefficiencies, and large fields of exploration where our quants can exercise their innovative capacities as well as apply our cutting edge technology.