Markets Turn Down the Volume Amid Rising Volatility

The video discusses the impact of volatility on bank business models, highlighting how traditional profit avenues have shifted. It explores the relationship between market volume and volatility, noting changes since the 2009 crisis. The role of high frequency trading and algorithms in exacerbating volatility is examined, along with the challenges of liquidity in equity and fixed income markets. The discussion also touches on the influence of passive funds and ETFs on market dynamics.

What has traditionally been believed about volatility and its impact on trading profits?

How has the role of banks in trading changed with respect to volatility?

What factors contributed to the lack of volume in the market despite the presence of volatility?

In what ways has high-frequency trading affected market volatility?

What changes are being observed in the activity of big banks in the market?