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Goldman Sachs Principal Transactions Update: 60% Decline
The most recent, presumably correct, data has been released by the NYSE: Goldman total principal program trading has declined by 60% from 1,336 million shares in the prior week to 571 million in the current. The end of the Russell rebalancing likely played a major role in the decline as overall NYSE program trading volume was also impacted by a comparable margin. Yet what was odd is that last week's Russell indexing action was the lowest volume rebalancing event in years.
Nonetheless, even with the material decline in overall program trading, it still accounted for 38% of the NYSE weekly volume, 12% higher than the running 52 week average. With the ever increasing dominance (I plan on summarizing the most recent three months' PT action early next week) of program trading, is it any wonder why all of a sudden even the MSM is expressing such persistent interest into not only peripheral personnel scandals associated with program trading but the core issues as well.
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That's millions of shares, not billions, praise Him.
You have to take into account the 4 day work week, with July 4th on Friday.
Don't forget that Monday and Tuesday were also in June, so technically RUT rebal should have in theory persisted for at least 50% of the open market days in the period.
Fritz of GM just now - we expect to save 1,500 jobs by building a new small car right here in Michigan (and that was it for his comments on the jobs front)
Some points to this NYSE reports. 22-27 june week was an expiry week, the second most important expiry after december one. It's normal that volumes are much higher, they double or triple. I suppose that those programs accelerates to trade as the volumes increase, sort of spiral. And so it's normal, taht after expiry, volumes slow down, and with them the program trading.
When you look at the historical reports from NYSE, you see that every time, the % of program trading to the weekly volume increased in the weeks of expiry..And 48.8% figure was already out in june 18-22 2007. I still do think that these figures are huge, but has been happening since a long time and I don't think that mr Aleynikov was having much to do with this.
I like your blog. Cheers! :)
curious if there was any change in goldman sachs' relationship with the NYSE or access NYSE data after John Thain took over as CEO of the NYSE?