Old Wall Street Is Losing the War Under the Surface of ETFs
- Electronic traders are boosting their share of market making
- Regulation has hurt this business for firms like Goldman Sachs
A Look Into the Future of the ETF Market
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A hidden war is taking place within your exchange-traded fund, and some of the biggest names on Wall Street are losing out.
Banks like Goldman Sachs Group Inc. have surrendered a once-lucrative type of market making amid an onslaught of regulation that’s wiped out profit margins. Nimbler firms -- so-called high-frequency traders -- have picked up the slack.