Why the Big Money Isn’t Trading Right Now, this Week!

Most institutional players avoid putting on fresh positions this week because US trading desks close their books on 31st December. Since banks, hedge funds, and broker-dealers follow the calendar year (Jan 1–Dec 31) for accounting and reporting, risk is reduced ahead of year-end. Once the books are closed, there’s little incentive to take new positions, as any gains or losses would belong to the next accounting year, not the one just closed.