Spreading

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[Sulaiman Ahmed @ShaykhSulaiman]

TRUMP JUST THREATENED TO ASSASSINATE THE IRANIAN DELEGATION

"You close [the Strait] and you won't have a country. You won’t even make it BACK to your f**king country.”

WHY ARE THEY NEGOTIATING UNDER THESE THREATS?

[BRV @willrayvalentin]

Hope this helps

[Lydia_Perry @Beauty_Girls9]

Hyundai Robot move vehicle with precision to improve safety in automated parking 😜

[HFI Research @HFI_Research]

Global visible oil storage (not satellite data).

Source: Morgan Stanley report

[Quant Science @quantscience_]

How to build your own algorithmic trading analyzer with Claude Code.

(bookmark this for later)

[Quant Science @quantscience_]

Jane Street, AQR, Ren Tech...

All use volatility.

Retail was locked out... until now.

A 327 page PDF was just released. For free:

[Stat Arb @quant_arb]

Market making usually ends up eating arbitrage opportunities in the end, and we've seen this happen in the liquid digital asset perpetual futures markets.

I'll explain:

For a given arbitrage, there's a level of reward and a level of cost to trade into it. When that ratio is extremely large you get taker only opportunities. This usually only happens in really unsophisticated markets, or with extreme latency requirements.

We are far away from the taker only arbitrages that used to exist except for maybe with some niche DEX/DEX or CEX/DEX arbitrages that exist, but even then most players have gotten smarter now.

Nowadays, most players will run maker/taker where you make on the illiquid leg and then take out on the liquid leg. This is an effective way to reduce costs, and you can still capture a lot of the profits. The only reason you would use the taker/taker quoter then is if the opportunities are extremely short lived (this type of trade eventually becomes a latency fight).

Now, the reason I say that market making eventually captures arbitrages is that when you quote around a fair value you are really saying I want to quote around where I think the market will be in the future and not where it is currently - this prevents you getting picked off by savy traders.

If I am quoting in a crappy exchange and it is far from Binance, then I will probably have some feature along the lines of basis to Binance and that will produce a forecast which says that the price on the crappy exchange will go towards Binance. This or I will simply quote around some global fair value which is volume weighted and hence will end up looking a lot like quoting around Binance (and also some Okex/Bybit).

Quoting around Binance on a crappy exchange is basically the same as running a maker/maker arbitrage strategy since you will be buying when it is below Binance and selling when above Binance (by using the Binance price your quotes will be aggressive in the respective directions when this misalignment occurs).

If you add a taking algorithm into your market maker which usually will take the form of some internal quotes you don't show the market and then send out taker orders when they cross the market, then if you do this, you will end up doing taker/taker arbitrages (or taker/maker depending on your hedge leg).

Your market maker on Binance will hedge the position because it will have an awareness of global inventory, and as such you will make (or if urgency requires it in your system - take) out of the position. The end result is that if you quote on two exchanges, and one is misaligned, then your forecast will pull you into quoting in such a way that you end up capturing arbitrages anyways.

Market making both legs is the most cost effective way to trade such things and it also allows you to combine the arbitrage view of where price is going with other features (such as overall price momentum/reversal). As such, more edge than just the arbitrage can be captured as many exchanges with arbitrages provide for a great way to dump toxic flow and pick up inventory in the direction you want it.

All of this means that as a market matures, market makers will eventually take over the role of keeping markets in line. On the low latency front they typically will have better latency tech and their hitting machines (taker systems) will be faster than a purely taker arbitrage focused shop on average, and for making into the opportunity, full maker using great quoting logic and additional market making alphas will crush an arbitrage only shop.

This is what we've seen happen. Most of the arbitrages now are only on niche DEXs / CEXs or have operational challenges (arbitraging Turkish crypto exchanges requires you to transfer Lyra internationally which is hard). Market makers eat the arbs in the end.

If you enjoyed reading, I have many articles on the topic of arbitrage on my blog www dot algos dot org.

[Nader Itayim | ‌‌نادر ای��یّم @ncitayim]

🇮🇷🇺🇸 Iran's @MehrnewsCom out with details of "the 14-point draft" of the MOU, as per "a source close to the Iranian negotiating team:"

▪️Permanent and immediate cessation of war on all fronts, including Lebanon.
▪️America's commitment to non-interference in Iran's internal affairs and respect for the sovereignty of the Islamic Republic of Iran.
▪️Complete lifting of the naval blockade within 30 days
▪️America's commitment to withdrawing its forces from around Iran
▪️Reopening the Strait of Hormuz within 30 days with Iranian arrangements
▪️Suspension of sanctions on the sale of oil, petrochemical products and derivatives and full access for Iran to its financial resources.
▪️The need for the United States and its allies to present reconstruction plans for Iran worth at least $300 billion.
▪️60 days of negotiations to reach a final agreement based on nuclear issues and the complete lifting of primary, secondary, US sanctions and resolutions of the UN Security Council and the Board of Governors of the International Atomic Energy Agency
▪️Reiterating Iran's commitment in the NPT not to produce nuclear weapons
▪️During the negotiations, the United States has committed not to increase its forces in the region and will not impose new sanctions.
▪️Release $24 billion in blocked Iranian funds during the 60-day period of final negotiations. Half of this amount must be made available to Iran before the negotiations begin.
▪️Establishing a monitoring mechanism to implement the agreement.
▪️The final agreement will be approved by a UN Security Council resolution.
▪️The final negotiations will not begin before the release of half of Iran's frozen funds, the suspension of Iran's oil sanctions, and the lifting of the naval blockade. The final agreement will be made solely on the fate of enriched materials and enrichment, the lifting of sanctions, and the Iranian economic reconstruction program. Discussions about Iran's missile program and support for resistance groups have been definitively removed from the agenda.

"As the Foreign Ministry spokesperson announced, this text still needs to be reviewed and finalized by the relevant institutions in Iran."

[Spreading @MagicMenhir]

@BruceKnuteson @DarioCpx I believe, it's the same for SP500, most of the returns is overnight

[C.J. @CJ0pp3l]

🍁 interesting

[Giovanni Staunovo🛢 @staunovo]

Charts on US petroleum inventories in million barrels (EIA) #oott

[Scott Irwin @ScottIrwinUI]

1. D4 RIN prices have been setting all-time highs on an almost daily basis recently. Yesterday (5/27/2026), 2026 vintage D4s hit a price of $2.26 per gallon. The main reason that D4 RIN prices are so high is the sheer magnitude of 2026 and 2027 biomass-based diesel RVOs finalized by the EPA at the end of March. What may be less well understood is that D4 prices would have been even higher if not for the Iran conflict.

[zerohedge @zerohedge]

China refiner margins (when Beijing tells you you can't raise prices, you don't raise prices).

[HFI Research @HFI_Research]

Global onshore crude oil inventories excluding China and SPR.

[Karen Braun @kannbwx]

🇺🇸Last week's U.S. ethanol production was relatively muted for a third straight week, though still in line with seasonal trends.

Despite lighter output, ethanol stocks reached a May 1 record, surpassing pandemic-elevated 2020 levels. Bit of a slip in demand.

[(((The Daily Shot))) @SoberLook]

The current energy shock has not triggered a rebound in coal demand outside China.

Source: @RealAlpineMacro

[Rory Johnston @Rory_Johnston]

US petroleum inventories fell by 11.1 MMbbl last week between commercial stocks (-5.9 MMbbl) and the SPR (-5.2 MMbbl)

Commercial crude -2.3, gasoline -2.4, diesel -1.3, jet fuel -0.6, propane -1.3.

Big draw, but roughly half the size of last week's blowout.

[Iran Embassy SA @IraninSA]

The way the United States closed the Strait of Hormuz.

[Energy Headline News @OilHeadlineNews]

US gasoline inventories are at their lowest seasonal level for more than a decade - FT

[Brett Gibbs @OilandGibbs]

It's a matter of when, not if