Old trading technology one reason for lower equities revenue at Goldman Sachs
New York — On Tuesday, Goldman Sachs became the first Wall Street bank this earnings season to report lower equities trading revenue, signalling that it was unlikely to reclaim the top market share ranking from Morgan Stanley any time soon. People familiar with the business said a combination of outdated trading technology, a late effort to court quantitative funds and overall fee pressure on the bank’s key clients had blunted Goldman’s edge. It is now ranked number two. In 2016, the once-dominant bank fell more than $1bn behind Morgan Stanley in equities revenue, marking the widest such gap between the firms to date. That gap, which has been growing for years, has raised pressure from investors looking for answers and prompted Goldman to rethink its strategy. "If they’re not experiencing the same good results as their peers, you may have to question if they’re owning up to their issues," said Jerry Braakman, chief investment officer of First American Trust, which holds Goldman shar...
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