Małgorzata Karaś
pages: 48-52, JEL classification: K22, G18, Key words: Securities, funded positions, regulatory arbitrage, Abstract: Regulations treating in a diversified way different types of funded positions introduced over decades, do not take into consideration the increasing opportunities of financial innovation and regulatory arbitrage. These opportunities seem to significantly benefit the most sophisticated market agents, for whom this costly opportunity makes economic sense as they typically engage in gigantic transactions. However, the answer to the question of whether such a diversified system of regulations is socially desirable seems to be negative.