Unhedged The titans of Wall Street
Oct 22, 2024
Robin Wigglesworth, a financial journalist based in Oslo, dives into the rise of algorithmic trading firms like Citadel, XTX, and Jane Street. He reveals how these firms have taken over trading in equities, currencies, and bonds, historically dominated by banks. Discussions circle around the significant impact of technology on finance, regulatory changes post-2008, and the unique dynamics within these firms. Wigglesworth also touches on the elusive nature of finance leaders in media and brings some light-heartedness with a pub quiz segment.
AI Snips
Chapters
Transcript
Episode notes
Rise of Algorithmic Trading
- New titans of Wall Street use computers and coders, not traditional trading floors.
- These firms have grown massive, dominating trading in stocks, currencies, and bonds.
Banks' Loss of Grip
- Banks lost their trading dominance due to slower adoption of technology.
- Algorithmic trading firms were quicker to adapt, offering faster and more efficient trading.
Impact of Regulation
- Regulations after the 2008 financial crisis limited banks' risk-taking.
- This led to the growth of shadow banking and pushed trading away from banks.