QuoteOriginally posted by: PvalAnal85Hi,I'm not so sure that Heston-parameter smile-fit modelling ever really went away. What we've seen is perhaps a vast unwind in the kind of complex structures (due to financial crisis) that made Heston calibration necessary in the first place. In addition, as models become "canonical", they are implemented at banks and hedge funds, and there is less of a need to discuss theoretical foundations of the model (as they're established in practice)....(i) the fallout from the concentration of CCPs. I think they're the new "too big to fail" and, despite risk models and prevention systems in place, nothing is invincible. (ii) "Liquidity smiles"Sure, Heston became a boring commodity, just like p-value in medicine, or oil/coal in energy: that didnt make it any better even though the unwind brought some exhogenous silencing :-)Btw, can we say that student t is the new gaussian copula?I agree on CCPs, regulators are shouting: "Hey, look here: if even these fail, they'd really fail big time.". To which the obvious answer is "If I can game these, what a game then!". A solution looking for another problem, and humans are ingenuous... err, I meant ingenious, of course!