Investment thesis
Volume transactions by "institutions" managing multi-billion-dollar portfolios force equity markets into two behaviors: (1) Small regularly-repeatable transactions between individual investors which are system-automated at near-zero cost of handling and (2) giant-volume irregular transactions typically initiated by one institution but (partly) satisfied by groups of other institutions, negotiated by market-making [MM] firms.
The unsatisfied remainder of each giant trade order is only completed when a satisfactory hedge deal in derivative securities can be reached to protect MM capital put at risk of price change to "fill" the supply and demand imbalance created by the