Flow of diffeomorphisms induced by a geometric multiplicative functional (Q1271264)

The paper describes a new approach for constructing a stochastic flow of diffeomorphisms. The authors prove that the unique multiplicative functional solution to a differential equation driven by a geometric multiplicative functional constitutes a flow of local diffeomorphisms. A geometric multiplicative functional is constructed using Lyons forms [see \textit{T. Lyons}, Math. Res. Lett. 1, No 4, 451-464 (1994; Zbl 0835.34004)]. If the driving path is a Brownian motion (or more generally, a continuous semimartingale), the result in particular gives the answer to an open problem proposed by \textit{N. Ikeda} and \textit{S. Watanabe} [``Stochastic differential equations and diffusion processes'' (1981; Zbl 0495.60005)].