So then why do they trade at all then? I'm not arguing for trading, I'm just curious.
It seems like the existence of 'trader' as a job at all of these financial institutions kind of disproves EMH if you have enough market data
It seems like the existence of 'trader' as a job at all of these financial institutions kind of disproves EMH if you have enough market data
After the Volcker rule the big banks had to close their prop trading groups: https://en.wikipedia.org/wiki/Proprietary_trading
The idea that investment banks are filled with human "traders" is Hollywood nonsense.
Most trading activity (and even filling of retail order flow) is now done by quant-driven funds.
I stand by my point, the idea that Goldman is full of traders in the Hollywood sense is nonsense.
Goldman Sachs, et al, would not lobby the government to get rid of a law that prevents them from doing something unprofitable.
[1]: https://www.politico.com/story/2019/08/20/volcker-rule-josep...