First of all I don't care one iota about Jane Street or how much money Jane Street employees make.
The problem is that this money has to come from somewhere. And while you say it's due to the entire system becoming more efficient, that's not the full story. That $1 billion Indian options play came at the expense of Indian retail investors.
So yes, there is a siphoning of money out of the hands of the retail investors and into the vast pool growing under Jane Street and its employees, much as it has done under others like Citadel.
Who is that good for, except Jane Street?
If you look the per capita income from where it's leaving to where it's going, that's where I see a growing problem.
There may be a sucker born every minute, but that doesn't mean that this is all just about making markets more efficient.
And, of course, none of this would have been possible without the additional "liquidity" provided ... the clearly essential contribution that makes it all justified. "We provide liquidity!". Ok ... ?
There's some efficiency improvements too, but ... eh.
No, no ... it's not.
First of all I don't care one iota about Jane Street or how much money Jane Street employees make.
The problem is that this money has to come from somewhere. And while you say it's due to the entire system becoming more efficient, that's not the full story. That $1 billion Indian options play came at the expense of Indian retail investors.
So yes, there is a siphoning of money out of the hands of the retail investors and into the vast pool growing under Jane Street and its employees, much as it has done under others like Citadel.
Who is that good for, except Jane Street?
If you look the per capita income from where it's leaving to where it's going, that's where I see a growing problem.
There may be a sucker born every minute, but that doesn't mean that this is all just about making markets more efficient.
And, of course, none of this would have been possible without the additional "liquidity" provided ... the clearly essential contribution that makes it all justified. "We provide liquidity!". Ok ... ?
There's some efficiency improvements too, but ... eh.