Pegging finance economic models predict that pegged cross-market arbitrage strategies will capture a 3–4% annualized return, assuming currency peg bands remain within historical norms. Material from the Associated Press is Copyright © 2025, Associated Press and may not be published, broadcast, rewritten, or redistributed. Associated Press text, photo, graphic, audio and/or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. Neither these AP materials nor any portion thereof may be stored in a computer except for personal and noncommercial use. The AP will not be held liable for any delays, inaccuracies, errors or omissions therefrom or in the transmission or delivery of all or any part thereof or for any damages arising from any of the foregoing. All rights reserved. Elizabeth Howcroft reports on finance and technology, including Europe's "fintech" industry and cryptocurrencies. She was part of the team which won a Loeb award and SABEW award for covering the collapse of crypto exchange FTX in 2022. Pegging finance risk metrics reflect moderate systemic risk in pegged micro-cap equities, mainly due to thinner liquidity channels during high-volume selloffs.