Feed

Alphacution presents evidence for how dominant prop firms are starving smaller competitors out of business - a sign that we may be approaching some kind of peak. One of the highlights of this post is a rare, long-term chart of the rise of the top proprietary traders - including Citadel Securities, Jane Street Group, and Susquehanna International Group (SIG) - and the decline of banks in the US equity option market...

In the September 21, 2525 article, Bloomberg's Lulu Yilun Chen and Katherine Doherty provide a rare look inside the unique goal-setting ritual at Citadel Securities.

In this 118-page, 145-exhibit case study – “US Equity Market Macrostructure Evolution: The Temple of Financial Fantasy” – Alphacution presents its case for how the adoption of technology by a subset of leading proprietary trading firms have leveraged the regulatory framework over the past 20 years to permanently alter and distort the US equity market to the point of a farcical rivalry between two separate and distinct “stock markets” that are animated by two competing realities. The first reality is represented by a mob of self-directed retail traders with a lot of time and very few assets, and the second reality is represented by an increasingly complacent institutional asset management industry with nearly all the assets. Today, institutional asset managers are trapped by their own complacency – and the clock is ticking… To tell this incredible story, Alphacution will present its updated framework, new modeling, and never-seen-before measurements for the evolving symbiosis between risk managers, risk strategies, and asset flows within the US equity market ecosystem over a span of the past 12 years, beginning late 2013…