Market making
Securities Analysis / Trading · Trader
“Market making” (Securities Analysis / Trading) was largely replaced by AI in 2018, after AI entered in 2008.
What this task is
Market makers continuously quote prices to buy and sell, providing liquidity and earning the bid-ask spread while managing the risk of the positions they accumulate.
How AI replaces it
From 2008, high-frequency trading systems began adjusting quotes and hedging automatically within milliseconds in response to order flow and price moves. By 2018, market making on major electronic exchanges was almost entirely done by software.
What stays human
People now design and supervise market-making strategies, manage technology and compliance risk, and still quote prices by hand in over-the-counter and non-standard products where automation is thinner.