so the market operations of dealers/market-markers is quite predictable
Illya Gerasymchuk
so the market operations of dealers/market-markers is quite predictable
you just have to look at their business & regulatory model - from there it's almost plain math under regulatory constraints
dealers/market makers are legally limited in their balance sheet
there are ratios that they must respect, or face legal consequences (e.g. fines)
check Basel III & Leverage Ratios for more info - I also wrote about it in my past posts
committee recommendations develop into law
