Human–Computer Interaction, Incentive-Conflicts and Methods for Eliminating Index Arbitrage, Index-Related Mutual Fund Arbitrage and ETF Arbitrage

  • Michael I. C. Nwogugu


Around the world, Index Arbitrage and ETF Arbitrage remains a major problem (this chapter does not cover the arbitrage of Mutual Funds). The US Congress and many governments have attempted to tackle these problems and have enacted various laws which have not been effective. Index Arbitrage and ETF Arbitrage don’t facilitate price discovery, they amplify volatility and financial instability and distort indices and the perceptions of the true values and risks of companies. This chapter contributes to the existing literature by: (i) introducing new adverse effects of Index Arbitrage and ETF Arbitrage, (ii) introducing new methods for eliminating Index Arbitrage and ETF Arbitrage, (iii) introducing new theories-of-liability and causes-of-action against perpetrators of Index Arbitrage and ETF Arbitrage.


Investors’ preferences Human–computer interaction Eliminating Index Arbitrage ETF Arbitrage Fraud Regulation Complex systems 


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© The Author(s) 2018

Authors and Affiliations

  • Michael I. C. Nwogugu
    • 1
  1. 1.EnuguNigeria

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