3 papers
q-fin.TR2026
TradeMech: A Method to Multilaterally Net Trades Without Altering Counterparty Exposure
Daniel Aronoff, Robert M. Townsend, Madars Virza
Financial markets such as bond, derivatives, and repo markets form networks of interdependent obligations. Existing multilateral netting methods typically trade off the extent of n…
econ.TH2026
A Smart-Contract to Resolve Multiple Equilibrium in Intermediated Trade
Daniel Aronoff, Robert M. Townsend
We construct an empirically founded model of a repo trade intermediated by two broker-dealers and prove multiple equilibrium and the existence of equilibrium at the joint profit ma…
econ.GN2025
RepoMech: A Method to Reduce the Balance-Sheet Impact of Repo Intermediation
Daniel J. Aronoff, Robert M. Townsend, Madars Virza
A repo trade involves the sale of a security coupled with a contract to repurchase at a later time. Following the 2008 financial crisis, accounting standards were updated to requir…