Software doesn't have a frat buddy working at the bank across the street.

Why is that advantageous?

Trading is a zero-sum game, right? So how does having an alliance with a competitor help out much?

Because plenty of deals are negotiated off the market.

What sort of deal? What could the advantage be of negotiating a deal off the market? Deals are zero sum, right? If you and I make a deal where an item is transacted for above market value, or below market value, one of us is going to lose out as a result.

I think it's a matter of being book smart vs being street smart. There's still room for both.