Our research examines how physical constraints on information transmission affect financial market structure, efficiency, and institutional design.
Financial markets implicitly assume near-instantaneous information transmission. When this assumption fails — whether due to infrastructure limitations, network disruptions, or extreme distances — fundamental questions arise about market structure, efficiency, and institutional design.
Our research program develops rigorous theoretical and empirical frameworks for understanding markets operating under communication constraints. We combine methods from quantitative finance, econophysics, network theory, and institutional economics to address these questions.
This work has immediate relevance to infrastructure-dependent markets (submarine cables, satellite communications), regulatory design, and forward-looking applications to distributed economies including future interplanetary commerce.
Development of mathematical frameworks for understanding market behavior when information propagation is finite and predictable. This includes formal analysis of no-arbitrage conditions, price formation, and market equilibria under communication constraints.
Our theoretical work establishes rigorous foundations for analyzing how causality constraints affect market structure, providing limiting cases that connect to classical financial theory while capturing real-world latency effects.
Examination of how communication infrastructure affects market efficiency, price discovery, and liquidity provision. This research stream addresses both normal operating conditions and infrastructure disruptions.
Applications include analysis of submarine cable networks, satellite communication systems, and the relationship between physical infrastructure and financial market outcomes. Empirical methods include natural experiments and infrastructure-pricing relationships.
Policy implications of latency-based market asymmetries and development of regulatory frameworks that account for physical constraints. This includes analysis of fairness standards, market access rules, and coordination mechanisms for physically distributed markets.
Research questions address how regulators should account for unavoidable infrastructure-dependent advantages, appropriate disclosure requirements, and international coordination for globally distributed financial systems.
Design of financial systems and economic institutions for environments with significant communication delays. This forward-looking research addresses extreme-latency scenarios from satellite-linked economies to future interplanetary commerce.
Applications include settlement mechanisms, monetary frameworks, and institutional arrangements suitable for causally-separated markets. This work establishes first-principles constraints for distributed economic systems.
Analysis of how latency affects price discovery, order execution, and trading strategies. Research includes examination of alternative market mechanisms (batch auctions, randomized processing) and their effectiveness in mitigating latency-based asymmetries.
This work informs the design of next-generation trading infrastructure and evaluation of market mechanisms that explicitly account for communication constraints.
Our interdisciplinary approach integrates multiple research methodologies:
Rigorous development of theoretical frameworks using stochastic calculus, information theory, and network analysis. Formal proofs establish fundamental results about market behavior under causality constraints.
Statistical analysis of market data, infrastructure measurements, and natural experiments. Econometric methods validate theoretical predictions and quantify real-world effects of communication constraints.
Examination of how existing institutions, regulations, and market structures interact with physical constraints. Development of policy frameworks and institutional mechanisms suited to latency-constrained environments.
Numerical simulations and computational analysis to explore complex scenarios, test market mechanisms, and validate theoretical predictions under realistic conditions.
We welcome collaboration with researchers across disciplines including finance, economics, physics, computer science, law, and engineering. We also engage with industry practitioners, infrastructure providers, and policy institutions.
Research partnerships may include joint projects, data sharing agreements, conference presentations, and co-authored publications. For collaboration inquiries, please visit our contact page.