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Multivariate Transient Price Impact and Matrix-Valued Positive Definite Functions

Multivariate Transient Price Impact and Matrix-Valued Positive Definite Functions

We consider a model for linear transient price impact for multiple assets that takes cross-asset impact into account. Our main goal is to single out properties that need to be imposed on the decay kernel so that the model admits well-behaved optimal trade execution strategies. We first show that the …