Jurisdictional Admissibility Collapse in Equity Portfolios
Abstract
This paper introduces jurisdictional admissibility collapse as a distinct failure mode in equity markets. Unlike classical market failures driven by instability, volatility, or divergence, this collapse occurs when institutional rules revoke permission for a portfolio to continue, even while prices and portfolio values remain bounded and continuous. The work formalizes this mechanism through a single admissibility function J(t)=E(t)−M(t), where E(t) is account equity and M(t) is the institutionally imposed maintenance requirement. It shows that discrete rule enforcement can eliminate market existence at finite distance from any dynamical boundary, rendering classical risk metrics and stability analysis structurally blind to this form of collapse.
Fields of Study & Subjects
Risk and Portfolio Optimization
Corporate Finance and Governance
Law
Economics
and Judicial Systems
Publication details
- Journal / source
- Zenodo (CERN European Organization for Nuclear Research)
- Publication date
- 8 January 2026
- Language
- EN