Market-making Migrates off Bank Balance Sheets |Citadel Securities,Jane Street& Hudson River Trading

Market-making Migrates off Bank Balance Sheets |Citadel Securities,Jane Street,& Hudson River Trading

A record quarter for a small group of private trading firms is being read as a windfall of war and market turbulence. The more consequential signal is structural: the function of providing liquidity to the world’s deepest markets has migrated off the regulated bank balance sheet into a narrow cluster of technology-driven private firms — and it has done so as the regulatory perimeter around those firms is being loosened rather than drawn tighter.

#MarketStructure, #Liquidity, #MarketMaking, #CitadelSecurities, #JaneStreet, #HudsonRiverTrading, #NonBankFinance, #NBFI, #ShadowBanking, #SystemicRisk, #eSLR, #BaselIII, #PrivateCredit, #SECDealerRule, #FSOC, #TreasuryMarket, #Volatility, #MarketLiquidity, #CapitalAllocation, #SovereignWealth, #PCRCapitalInsights