Goldman Sachs has launched a new FICC Systematic Market Making (SMM) unit. SMM will consolidate its e-trading assets and capabilities across FICC. The move was reported in an internal memo as reflecting changes in market structure and client needs.
The memo, signed by several executives including group chief information officer Martin Chavez, says, “Our ability to innovate and provide a range of execution alternatives is essential for our clients who increasingly depend on firms that are able to integrate deep market expertise with cutting edge automation across interest rates, currencies, commodities and credit.”
It goes on to note that the effort will drive automation in pricing and risk management to offer greater liquidity across FICC products, consolidating and expand the existing electronic market making and algorithmic execution.
“Our technology, market understanding and client franchise uniquely position the firm to realise this important opportunity and establish SMM as the leading electronic business across FICC globally,” it concludes.
Konstantin Shakhnovich, global head of FICC Electronic Trading and Execution Strategists and a member of the Firmwide Technology Risk Committee, has been appointed to lead this effort, reporting to Martin Chavez and the FICC business unit heads.
Reported by Dan Barnes