Cross-Market Efficiency

Definition ∞ Cross-market efficiency describes the extent to which information and pricing disparities between different but related financial markets are quickly arbitraged away. In digital assets, this refers to the rapid equalization of asset prices across various exchanges and trading platforms. An efficient cross-market environment minimizes opportunities for profitable arbitrage due to swift price discovery and adjustment. This state reflects high liquidity and informed trading activity across interconnected venues.
Context ∞ Debates about cross-market efficiency frequently appear in analyses of cryptocurrency market maturity and regulatory oversight. Observers often discuss how fragmented liquidity and varying regulatory frameworks can affect the speed of price convergence. Improving cross-market efficiency is a goal for many digital asset platforms, aiming to provide more stable and predictable trading conditions. This pursuit is essential for market integrity.