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derf_
10 months ago
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Wall Street’s ‘Private Rooms’
These kinds of wealth transfers have been studied, and you do not need dark pools for them, just predictable trading patterns. See, e.g.,
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5080459
on index funds or
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5122748
on funds that maintain a certain ratio of stocks to bonds (e.g., target-date funds). These costs can be larger than the actual management fees of the funds.
Dylan16807
10 months ago
[–]
The evidence being asked for is that dark pools and rooms will
increase
this effect.
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