We show that the generating functions of Gromov--Witten invariants with ancestors are invariant under a simple flop, for all genera, after an analytic continuation in the extended Kähler moduli space. This is a sequel to [LLW].

1. INDEX THEORY, ELLIPTIC CURVES AND LOOP GROUPS One can look at elliptic genus from several different points of view; from index theory, from representation theory of Kac-Moody affine Lie algebras or from the theory of elliptic functions and modular forms. Each of them shows us some quite different interesting features of ellitic genus. On the other hand we can also combine the forces of these three different mathematical fields to derive many interesting results in topology such as rigidity, divisibility and vanishing of topological invariants..

Let X denote an equivariant embedding of a connected reductive group X over an algebraically closed field X . Let X denote a Borel subgroup of X and let X denote a X -orbit closure in X . When the characteristic of X is positive and X is projective we prove that X is globally X -regular. As a consequence, X is normal and Cohen-Macaulay for arbitrary X and arbitrary characteristics. Moreover, in characteristic zero it follows that X has rational singularities. This extends earlier results by the second author and M. Brion.