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Old Guard to Vanguard

Traders Magazine, October 2008

Michael Scotti

That flickering quote on your screen is delivered to you by some of the smartest minds on Wall Street: automated market makers. Using a range of methods commonly referred to as black box trading, these automated market makers use quantitative models to make tight and efficient markets. Their flickering quotes are caused by the huge number of cancels and replaces they employ in their strategies. And you can bet that they are profitable-otherwise, why would their ranks continue to grow?

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