This dissertation demonstrates that mispricing of the S&P 500 futures contract can result from structural dissimilanties between the. New York Stock Exchange and the Chicago Mercantile Exchange. These related markets are linked through the agency of stock index arbitrage.Methodologies based upon the emerging science of nonlinear dynamics and system simulation are used to support this proposition. Because of the underlying deterministic (as oppo&ed to a stochastic) slant of the methodologies, it is possible to generate policy implications regarding the regulation of the financial markets. The conclusions from this dissertation can be used to support a free market regulatory stance.Business Administratio
