Stock index futures dual listing revolutionizes arbitrage and currency risk
The article discusses how the dual listing of stock index futures can lead to opportunities for arbitrage, spread arbitrage, and currency risk. Researchers from the London School of Economics and the University of Southampton examined these phenomena in the context of financial markets. They found that dual listing can create discrepancies in prices between different markets, allowing traders to profit from price differences. Additionally, they highlighted the importance of considering currency risk when engaging in these trading strategies.