GameStop, Stop

my headline for money stuff tomorrow is gonna be like “a few comments on the ISDA protocol for Libor transition in IR derivatives” and then the body will be “no just kidding here’s a ton more gamestop” — Matt Levine (@matt_levine) January 28, 2021

Quants Trading the Butterflies

Matt Levine, writing a Money Stuff: Another view of quant trading is that it reinforces market inefficiencies: Your algorithm notices some correlation, everyone else’s algorithm notices the same correlation, you all pile into the correlation, the correlation increases, and the original reason for the correlation goes away, or was spurious to begin with. The butterflies and …