April 16 Goldman Sachs is planning to
jump-start its stock-trading business after top clients such as
Fidelity Investments and BlackRock Inc voiced concerns
about the way Goldman and other firms trade stocks, the Wall
Street Journal reported, citing people familiar with the matter.
Money managers are concerned that the stock market had grown
too fragmented and complex, leaving everyone exposed to
technological mishaps, and that banks often routed too many of
their clients' trades to their own private trading venues,
so-called dark pools, and gave unfair advantages to high-speed
traders, the Journal said. (r.reuters.com/cus58v)
Such concerns could lead big investors to trade less,
reducing volume and crimping revenue at Goldman and its peers,
people familiar with the matter told the newspaper.
Goldman Sachs has encouraged employees to stress to clients
its views on market mechanics asking them to "add our voice as a
significant market participant on the current issues facing
today's equity market structure," the Journal said, citing an
Reuters could not immediately reach Goldman Sachs for
comment outside regular U.S. business hours.
Goldman's revenue from client stock trading fell 22 percent
to $598 million in the fourth quarter ended December 2013.
The company could shut down Sigma X, one of the world's
largest private stock-trading venues, reports said earlier in
the month. However, the decision is not imminent.
Goldman Sachs is scheduled to report first-quarter financial
results on Thursday.
(Reporting by Supriya Kurane in Bangalore; Editing by Gopakumar