(Changes sourcing, adds details about deal)
May 22 Goldman Sachs Group Inc will sell
its rights to operate as a designated market maker in more than
600 New York Stock Exchange-listed stocks to Dutch high-speed
trading firm IMC Financial Markets, IMC and NYSE said.
Designated market-makers, formerly known as "specialists",
operate both manually and electronically to facilitate price
discovery during market openings, closings and during periods of
substantial trading imbalances or instability for thousands of
IMC is one of the largest market-making firms in the world
and operates on more than 100 exchanges around the globe. It
provides liquidity to NYSE Arca, Nasdaq, BATS and CBOE among
Financial terms of the transaction were not disclosed,
though the Wall Street Journal, citing people familiar with the
deal, reported that IMC paid under $30 million. IMC also plans
to hire about 15 floor brokers from Goldman Sachs. link.reuters.com/xem59v
The Goldman Sachs DMM business team is expected to join IMC
as part of the transaction, IMC and NYSE said in a statement.
The deal is expected to close in the third quarter.
Goldman acquired the designated market-maker unit as part of
its $6.5 billion purchase in 2000 of Spear, Leeds & Kellogg.
Goldman will remain a broker on the New York Stock
Exchange's trading floor executing trades on behalf of clients.
(Reporting by Mridhula Raghavan and Avik Das in Bangalore
Editing by Eric Walsh and Maju Samuel)