Wall Street Built a $370 Billion Business Cloning Quant Trades

  • Biggest banks are producing thousands of QIS for large clients
  • Strategies surged in popularity as quants triumphed in 2022
A Wall St. sign in front of the New York Stock Exchange.Photographer: Michael Nagle/Bloomberg
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Deep in the bowels of Wall Street there’s a surprisingly successful counterfeiting operation underway: The world’s largest banks have created a booming business churning out imitation quant trades.

JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley are among those hawking the products, which are known by the deceptively dreary name “quantitative investment strategies,” or QIS.