Goldman Sachs is about to leave the floor of the New York Stock Exchange, but both sides are declining comments over this move. The possible withdrawal of Goldman Sachs from the trading of NYSE shows how much has changed business on the exchange.
The investment bank, which history is entwined with the stock trading center in Manhattan, is in process of selling its market-management division. For years, the noisy floor of the stock exchange is dropping, since the calling orders ages. In 2000 Goldman Sachs paid 6.5 billion USD for the acquisition of Spear, Leeds and Kellogg, which were then one of the strongest companies trading on the floor of the NYSE.
According to officials, the bank has found a buyer for the unit, which analysts now estimated at no more than 30 million USD. The division of Goldman on the exchange has attracted the interest of several computerized trading companies, some of which already have a presence on the NYSE floor.
Goldman managed 640 registered emissions of about 500 companies, ranking third after Barclays and KCG among the six active market makers on the floor of the NYSE. In spite of the sale, the bank will keep the brokerage functions and will continue to provide liquidity by the electronic trade on the stock exchange. The other assets of Spear, Leeds and Kellogg helped the bank to build a profitable electronic platforms. The business of the market makers, once known as specialists of management in the opening and closing of trade for thousands of companies on the NYSE and are responsible for providing liquidity on individual items, will be replaced by the computerized traders.
IntercontinentalExchange acquired NYSE Euronext last year for 11 billion USD because of its desire to have the London’s branch of the NYSE trading financial futures and options (Liffe).