[clavalle]

But I am not talking about the level of social systems. Of course the market itself is not approaching equilibrium. But the liquidity enhancement market is. There will always be money to be made there but not the bonanza that's existed up to about two years ago.

[kylebrown]

But that's mostly due to the much lower volume and volatility (rather than more competition). When its low, so is the demand for liquidity provision. But that demand will come back with the next volatility cycle.

Actually, volatility is only clustered when measured in calendar time. Its much more constant when measured in event/transaction time (plot price against cumulative volume, rather than date/time).