Compare two swans

 Covid suddenly appears, the Black Swan. Nixon exits the gold market, a Confusion Swan.  The former has to reorganize the biotech supply chain. The latter has to reorganize the precious metals market.

Those are requants, a shift in the distribution tree that require contraction my more than one rank. This is a jam up and redo. That is the definition of a sandbox Swan, equivalent to a requant. They both can be seen as a portfolio rebalance, having to suddenly shovel a bunch of coin tosses to one sector. 

Swans are a dimensional issue, they force the monetary economy to one axis, the axis that represents the Swan.   Sandbox pits assume an effective three color pit, deposits, loans and pit boss.  So on a Swan there is a lot of over the counter, and the ledger queues end up absorbing variance, we get miners instead of pit bosses. We operate in that dual mode until the coin is fair enough to reopen the pit. On a Swan we have a general exit from the pit, say a corporate debt market for biotech firms during a pandemic. But look at the over the counter deals, the mergers, acquisitions, the private equity going into the firms.  That is settling quickly, and soon the coin will be fair enough to reopen the corporate debt market for biotech.

The adaptive sandbox pits optimizes for a one and a half quanta variance, pit bosses keeps some reserve for ongoing uncertainty which cannot be eliminated due to serialization; the congestion effect. Below that level it is over the counter, but sandbox does that two with efficient ledger swaps. Technically the sandbox pit can swap out the pit boss risk bound and arbitrate over the counter deals in a multi price level auction. Isn't that over on the 2,y,z axis of the Markov 3 tuples? That solution is the big hedge fund or large investment bank running a price in and out in separate pits, connected internal to risk bearing capacity of the intermediate bank. We could automate that, and there should be a general adaption scheme that allows reconfiguration of liquidity across the whole 3-tuple tree.