Research in Causality-Bounded Finance
Examining how finite information propagation affects market structure, efficiency, and design — with applications from infrastructure finance to interplanetary commerce.
The Space Finance Institute is an independent research initiative examining how physical constraints on information transmission shape financial markets and economic systems.
Our work explores the implications of finite-speed communication for market microstructure, regulatory design, and institutional frameworks — addressing questions relevant to both existing infrastructure-dependent markets and future distributed economies.
We pursue rigorous theoretical and empirical research at the intersection of finance, physics, and institutional economics, developing frameworks that account for fundamental physical limitations in market design.
Our research program addresses how communication constraints affect financial markets across multiple dimensions:
Mathematical frameworks for understanding market behavior when information propagation is finite and predictable.
How communication infrastructure affects market efficiency, with applications to network disruptions and infrastructure valuation.
Policy implications of latency-based market asymmetries and institutional design for physically-constrained markets.
Financial system design for extreme-latency environments, from satellite networks to future interplanetary commerce.
Our interdisciplinary approach combines methods from quantitative finance, econophysics, network theory, and institutional economics to address these questions rigorously.
This paper introduces a framework for financial markets constrained by finite-speed information propagation. We establish no-arbitrage conditions under causal constraints and derive bounds on arbitrage distances incorporating both deterministic and stochastic latency effects. The framework converges to classical finance as information speed approaches infinity, while capturing real-world latency-dependent market behavior.
Available on SSRN Soon →This paper extends financial market theory into regimes where communication delays become economically significant. We demonstrate how relativistic causality constraints create distinct market regimes where traditional no-arbitrage conditions cannot hold, propose institutional mechanisms for distributed economies, and outline an empirical research agenda with applications from submarine cable finance to interplanetary commerce.
Download PDF →Additional research in progress on infrastructure-dependent market efficiency and regulatory frameworks for latency-constrained markets.
The Space Finance Institute welcomes collaboration and dialogue with researchers, practitioners, and institutions interested in the physical foundations of financial markets.
Partner on interdisciplinary research at the intersection of finance, physics, and institutional design.
Expert consultation on market infrastructure, latency-based market design, and regulatory frameworks.
Commentary on infrastructure finance, market structure, and regulatory implications of communication constraints.
For inquiries, please reach out via the contact information provided in our publications.