Market-making, positioning and AI-trading discourse
Traders are discussing adverse selection in market making, crowded-trade positioning, and AI-agent trading systems, with some inflated claims about Jane Street.
What we know
An account on X backtests an AS market-making bot against adverse selection, echoed by Kapila's comments. Ying Hua on crowded trades frames them as positioning games. Another account on X pushes AI-agent trading claims, including a dubious $39.6B/year figure.
How the story developed
Traders are discussing adverse selection in market making, crowded-trade positioning, and AI-agent trading systems, with some inflated claims about Jane Street.
Kevin Wang argues Variational's single-dealer model is comparable to TradFi venues like Citadel Connect and Jane Street JX.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.