Re:Ken Griffin’s Hand-Picked Math Prodigy Runs Market-Making...
by astrange on Monday May 15, 2023 @09:27PM
(#35956750)
"Market-making" doesn't involve "beating the market", it means providing a service for fees.
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Re:Ken Griffin’s Hand-Picked Math Prodigy Runs Market-Making...
by gbasin on Monday May 15, 2023 @09:37PM
(#35956814)
it's not... it's competing in the market for profits. citadel makes plenty of money from trading, separate from fee-based business
Re:Ken Griffin’s Hand-Picked Math Prodigy Runs Market-Making...
by is_true on Monday May 15, 2023 @09:49PM
(#35956913)
There are markets that pay people to trade to provide liquidity.
Re:Ken Griffin’s Hand-Picked Math Prodigy Runs Market-Making...
by hackernewds on Monday May 15, 2023 @09:35PM
(#35956803)
that seems like an over simplification. however I do have an aversion to "MBA types" skimming over complicated concepts with the blanket "nerdy mathematics" techniques.
Re:Ken Griffin’s Hand-Picked Math Prodigy Runs Market-Making...
by cuteboy19 on Monday May 15, 2023 @09:28PM
(#35956764)
Market making itself is a market, and people compete on cost and speed
Re:Ken Griffin’s Hand-Picked Math Prodigy Runs Market-Making...
by vgatherps on Monday May 15, 2023 @09:43PM
(#35956872)
I’m pretty sure Citadel securities makes more money from their non-wholesale businesses (I.e. on-exchange trading) instead of their retail pfof business. Either way, they are very successful in the competitive hft/trading arm as well as retail.
The hedge fund quant arm is also extremely successful.
Re:Ken Griffin’s Hand-Picked Math Prodigy Runs Market-Making...
by astrange on Monday May 15, 2023 @11:19PM
(#35957404)
I agree with this, but the comment I replied to is responding to an article about market-making.
Re:Ken Griffin’s Hand-Picked Math Prodigy Runs Market-Making...
by vgatherps on Monday May 15, 2023 @11:53PM
(#35957578)
Citadels’s market-making arm, Citadel Securities, IS extremely competitive in on-exchange trading. They don’t just do wholesale market making (I.e. service for a price), they provide liquidity on-exchange as well (much more competitive/latency/alpha based than service-at-a-price). They’re also very good at the hft taking.
Given, within Citsec, the retail market making arm is fairly segregated for compliance reasons, but it’s far from the only market making activities they engage in.
Re:Ken Griffin’s Hand-Picked Math Prodigy Runs Market-Making...
by hackerlight on Monday May 15, 2023 @10:01PM
(#35957003)
In reality there isn't a distinction between "market-making" and what you would consider "beating the market". Market makers employ the same models and approaches as those who "beat the market", because market makers need to know when and where to quote in order to maximize profitability. And people who classify themselves as those that try to "beat the market" also provide liquidity, making them de facto market makers, even if they often take liquidity too. So, people in the industry don't attempt to draw a clear line between the two categories, because they are so overlapping in practice.