If someone manages to apply LLMs to predict financial markets in a way that gives a significant advantage, there would be a strong incentive to keep that knowledge secret, which makes me wonder if it's already happening now.

The other question that arises from this line of thought is whether it would matter at all if markets became fully automated. I actually don't think we'd notice.

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Financial regulators do monitor, so if someone was doing significantly better than the rest of the market over a long enough period of time, there would likely be an investigation.

Black rock already does this. Most of the important market is automated since the late 80's from what I understand.

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Isnt that essentially what Blackrocks "Alladin" is ?

It's some sort of supercomputer network that predicts markets somehow.

It manages most of the worlds capital, or so I've been told .