4min chapter

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Ep. 10 Indy Johar - Redrawing the Human Development thesis for the 21st Century

Boundaryless Conversations Podcast

CHAPTER

The Problem With Zero Transaction Cost Arbitrage

The real risk we have is that, so I'll give you an example. So fractional trading on the global market has meant that we are now 70% of shares and stocks are traded in million milliseconds,. That's basically bureaucratic costs going to near zero, manifesting in that way. But if 72% of stocks are trading at that speed, what it also means is that there is no longer any functional shareholder governance on 70% of stocks. What we haven't done in the same time is transformed and transformed what is corporate governance into this future. We've used a zero transaction cost arbitrage the system or efficiently, but haven't reimagined what is the institutional requirements of that new

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