April 1 Goldman Sachs Group Inc is in the
process of selling its "designated market-maker" unit, people
familiar with the matter told the Financial Times on Tuesday.
The U.S.-based investment bank is understood to have lined
up a buyer for the unit, which analysts value at about $30
million or less, the newspaper reported. (link.reuters.com/baj28v)
NYSE and Goldman Sachs declined to comment on the story.
Formerly known as "specialists," designated market-makers
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
The unit has drawn interest from several computerized
trading firms, the FT said.
A person close to the matter told the FT that Goldman will
retain a brokerage role and continue to provide liquidity
electronically for NYSE stocks.
Goldman acquired the designated market-maker unit as part of
its $6.5 billion purchase in 2000 of Spear, Leeds & Kellogg,
which ranked as the largest U.S. stock and options clearing firm
by volume at that time.
Other Spear, Leeds assets have helped Goldman build
lucrative electronic stock trading platforms.
(Reporting by Aashika Jain in Bangalore; Editing by Tom Brown)