This article has been translated from English to Gen Z Slang.
Internalization is basically when banks go all "Let's keep it in the fam" and match up their clients' trades on their own books instead of hitting up the inter-dealer market like it's a night out. 💸
When we say flow internalization, it's just dealer slang for playing matchmaker with trades on the DL, not out in the open market. 🤝
So like, imagine Bank has Client A wanting to snag $100 million and Client B trying to offload $100 million. 🤑
Hooking them up saves mad cash on bro fees. 😎
And if those saved coins slide back to the clients? That's how you do it. 🤑👏
The secret sauce to being a pro at internalization: having enough trades to pull off that perfect match and rock-star tech to back it up. 🔥
So obviously, the big shot banks juggling tons of currency, aka the "flow monsters," crush it the hardest in the internalization game. 💪