Bond Traders Aren’t Immune to Automation, Goldman’s CFO Says – Bloomberg
January 18, 2018 \ 3 Comments
Full Article: Bloomberg
Chavez, the bank’s chief financial officer and a former Silicon Valley startup founder, said that part of a spending push has been devoted to analyzing how traders, salespeople and support personnel work, and automating those processes.
Is this news? The fixed income market is highly automated and supports many different execution methods appropriate for the particular product. It seems like Goldman may be playing catch up to the buy side, ie BlackRock, AB and others.
I feel like this headline is a touch misleading, which is completely out of character for the media. Given the timing of this article, I may be connecting dots that are unrelated, but this feels like in response to another lack-luster year for GS fixed income, the internal powers that be are looking to robots as the solution. The only problem with this automation strategy is that the buy-side is still very much dependent on human beings to do the large trades in fixed income. Those breeders have a tendency to want to talk and interact with other carbon-based life… Read more »
I agree, Wolfman. I think this is a defensive play by GS. And they should be doing it. Why let MarketAxess and LiquidNet and the myriad other recent startups slowly eat your lunch from the odd-lots on up? Develop your own automated, electronic platform. Sure, there’s some cannibalization, but you’re mostly reclaiming business that would otherwise be lost to some other all-to-all platform.
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