There’s an ever-expanding chasm in markets between fundamentals and flows, and market forces such as commission-free trading and the widespread adoption of passive ETFs have distorted price discovery, Real Vision's Tyler Neville told Ed Harrison during today’s Daily Briefing.
Neville explained what’s happening on the micro side of the market. It starts with the influx of retail traders, who are doing fee-free trades via internal wholesalers, which removes liquidity from the marketplace that is still getting printed to the tape.
Then, traders at large institutions see that volume going through and realize they’re not capturing