Interesting topic : analyitical derivation market deadlock scenarios. Current regulatory logic revolves around idea of optimal capital requrements and periodical system stress-testing. A question is – can we come up with a analytical model of total set of all possible positions, under set of constraints, such as total liquidity available, maximum risk tollerance, etc. For example, model could be represented as “cross-position matrix” to which we could apply analytical tools such as independence-analysis, eigenvector partitioning, etc.

Another idea : weighted-graph-representation of pre-clearing positions between financial intermediaries, graph partitioning, spectral clustering, complexity, etc. Financial system micro-modelling using CS artillery.