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 internal document.
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 Warrier)