There are some complicated investment and trading practices that need to be justified with an arbitrage rebate calculation. While there is nothing to prevent complicated trades based on derivatives, the problems arise when there is a difference in taxable financial products. The government has rules in place to regulate some of these activities to protect the public. There are also some rules to prevent an opportunity from being exploited. Remembering that the rebate needs to be calculated every five years on certain investments is important.

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