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Goldman Sachs Principal Transactions Update: 826 Million Shares

Tyler Durden's picture





 

The week ended August 7 indicated that Goldman's PT on the NYSE is regaining its dominance after in the prior week it came perilously close to being overtaken by Morgan Stanley (not so much in principal as in agency trading). In the last week 800 million prgram traded shares transacted each day, 26.9% of total buy-sell volume. Unfortunately the NYSE has removed how this compares on an average basis to a 52 week trailing average which last we checked was around 25%.

And here is the prior week's action. Is Morgan Stanley just starting to realize the potential bonanza that PT is, especially in the HFT realm?

 


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Sun, 08/16/2009 - 13:42 | Link to Comment Xibalba
Xibalba's picture

A wise Prophet once said "The love of Mammon is the root of varios kinds of evil". 

Sun, 08/16/2009 - 16:02 | Link to Comment D.O.D.
D.O.D.'s picture

Xibalba, yes, the gates will be open soon..

"You can run on for a long time,

but sooner or later, gotta cut you down"

http://www.youtube.com/watch?v=1e0EQlQXoEo

Mon, 08/17/2009 - 12:03 | Link to Comment artcash (not verified)
Sun, 08/16/2009 - 13:49 | Link to Comment andrew123
andrew123's picture

Tyler, do you think that now that GS is increasingly in the spotlight, that they will be even more inclined to pump the market, or at least prevent it from going down, so that they can hold it over the SEC's head ("we are the only thing preventing a market meltdown.  Stop HFT and the market will collapse.")

Sun, 08/16/2009 - 13:55 | Link to Comment deadhead
deadhead's picture

John Mack must be regretting his decision to reduce risk......

Sun, 08/16/2009 - 17:46 | Link to Comment Miles Kendig
Miles Kendig's picture

Given that state of things failure to engage in heavy PT would increase risk to rapid growth of Mack's institution.  Although I agree that the sorry mess in its entirety is doing things to the institution of markets as a whole that are quite destructive.

Sun, 08/16/2009 - 19:11 | Link to Comment Arm
Arm's picture

I have tons of respect for John Mack.   Something tells me he will have the last laugh come October

Sun, 08/16/2009 - 13:59 | Link to Comment Anonymous
Mon, 08/17/2009 - 00:49 | Link to Comment mcnetgb
mcnetgb's picture

The July 09 numbers for matched market share of all US equities are:

NYSE 28.3%

Nasdaq 22.1%

Direct Edge 11.8

BATS 10.83

http://www.tradeoes.com/?q=news/2009/747

 

Sun, 08/16/2009 - 14:18 | Link to Comment zeropointfield (not verified)
Sun, 08/16/2009 - 14:21 | Link to Comment zeta
zeta's picture

Has JPM always been like this (only 2.1M principal trading)? If not, can anyone take a guess what happened to it?

Sun, 08/16/2009 - 14:32 | Link to Comment Anonymous
Sun, 08/16/2009 - 15:09 | Link to Comment Anonymous
Sun, 08/16/2009 - 15:12 | Link to Comment i heart goldies
i heart goldies's picture

I think it's shocking that goldman does so much trading!!!1

Sun, 08/16/2009 - 15:26 | Link to Comment Milton
Milton's picture

I'm a little confused on how NYSE computes volume because when 100 shares are traded on the Exchange, that counts once, and only as 100 shares on the daily volume. But when the NYSE computes shares by broker/dealer don't they count that 100 share transaction twice and therefore the volume is doubled?

If someone can clarify, thanks.

Sun, 08/16/2009 - 16:12 | Link to Comment RobotTrader
RobotTrader's picture

Goldman's Prop Desk trading volume will be quickly dwarfed by mom and pop traders, Japanese housewives, Chinese gamblers, etc. if the SPY blows past the 1020 level and starts going vertical.

Just look at the record attendance at various "Money Shows", world record activity in sports book betting, and Lotto gaming.

And all the myriad ads appearing on how to get rich trading forex, options, futures, etc appearing daily in the business papers.

Its been almost 10 years since the public has been fascinated with stocks.

With so many in dire straits, never before have so many been forced into gambling as a means to make some fast money.

Sun, 08/16/2009 - 17:06 | Link to Comment Big Al
Big Al's picture

At least that's what the FED is counting on. 

Then they can dump their shares for a profit and use the proceeds to prop up Treasuries.

Mon, 08/17/2009 - 12:03 | Link to Comment artcash (not verified)
Sun, 08/16/2009 - 17:49 | Link to Comment Miles Kendig
Miles Kendig's picture

The perpetual boom-bust cycle of our economic model is heavily dependent on just this activity.  Without it the next cycle may well not materialize.

Sun, 08/16/2009 - 18:34 | Link to Comment Hephasteus
Hephasteus's picture

It's like when bejing was going to go under comunist control. Everyone wanted to make as much money as possible so that if they didn't like it they could get out.

 

But I think it's the baby boomers. What LITTLE savings they had for retirement gone rampant inflation in the breach of the gun. It's going to get ugly.

Sun, 08/16/2009 - 20:05 | Link to Comment D.O.D.
D.O.D.'s picture

I was at a "technical analysis training class" aka "Let us pitch our software" this weekend, there were maybe 100 people there, I was one of 3 under 60.

Sun, 08/16/2009 - 17:21 | Link to Comment Anonymous
Sun, 08/16/2009 - 17:45 | Link to Comment Anonymous
Sun, 08/16/2009 - 17:47 | Link to Comment Anonymous
Sun, 08/16/2009 - 19:40 | Link to Comment Anonymous
Sun, 08/16/2009 - 20:03 | Link to Comment Anonymous
Mon, 08/17/2009 - 12:02 | Link to Comment artcash (not verified)
Sun, 08/16/2009 - 22:47 | Link to Comment Milton
Milton's picture

I keep going back to the fact that GS made a profit on 61 out of 63 trading days. What is their explanation for this? All of their algo developers are really smart like Einstein?

This seems like common sense. Something is very wrong.

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