Discussion in 'Stock Market Forum' started by PaulSchinider, Apr 3, 2014.
The Goldman Sachs Group Inc. is looking to sell its New York Stock Exchange floor trading unit
Goldman is in talks with Dutch firm IMC Financial Markets regarding the deal of floor-trading unit
Goldman acquired Spear, Leeds & Kellogg for $6.5 billion in its fiscal year 2000
Here is the reason for why the Goldman Sachs is selling the trading unit for a fraction of the price it paid in year 2000
Spear, Leeds & Kellogg was the largest specialist firm on the New York Stock Exchange when Goldman acquired it 14 years ago !!!
The reason Goldman Sachs is looking to sell its New York Stock Exchange floor trading unit is because the business has evolved away from humans on the exchange. Only a fraction is being done on the floor with humans versus how much is being done electronically
Goldman Sachs is selling the New York Stock Exchange floor trading unit because with the shift in trading models, the profitability of such trading units has declined and Goldman Sachs has started to sell out their market-making businesses in an attempt to move to powerful computer algorithm trading capabilities
Such as Goldman Sachs, the Bank of America sold its market making business on the New York Stock Exchange floor to Getco, a high frequency trading firm, in year 2011
Goldman ranks third among the six market makers on the NYSE floor. KCG Holdings is currently top of the list, with London based Barclays taking the runners up position
Goldman Sachs's revenues remained flat on a year over year basis at $34.2 billion in fiscal year 2013
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