Pfes 193 <Legit>

This memo is submitted for the B+ to A- range, with the understanding that the policy recommendations are deliberately provocative to generate classroom debate. Appendix A (Simulation Data): Figure 1: Correlation matrix of 15 major quant funds (Jan–Mar 2026). Note the r-value of 0.94 during the 10:30 AM rebalancing window. Source: PFES 193 Lab Exercise #4.

Impose a 0.5bps fee on any trade executed faster than human reaction time (≥100ms). This internalizes the negative externality of AI race conditions. (Critique from PFES 193 peers: This would push trading offshore; rebuttal: apply the tax at the custody bank level). pfes 193

Mandate that registered funds must certify that their primary execution model uses a different training dataset or architecture than 30% of their sector peers. This is analogous to requiring different evacuation routes in a fire code. This memo is submitted for the B+ to