Boston, MA 05/22/2014 (wallstreetpr) – The changing financial and banking business landscape means that operators must always adjust accordingly, always on time to avoid challenges in revenue and profits. Goldman Sachs Group Inc (NYSE:GS) can be seen doing just that. The company has agreed to give up much of its space on the New York Stock Exchange trading floor to a Dutch financial services company.
The company has entered an agreement with IMC Financial Market, a high-speed trading company to cede rights to operate as a designated market-marker capturing more than 600 NYSE listed stocks. The deal also includes the acquisition of Goldman’s 15 trading floor brokers.
Although the financial terms of the deal were not disclosed, sources say that the deal could be worth about $30 million. News about Goldman and IMC being in acquisition talks over the trading floor at NYSE first surfaced last month.
Retreating NYSE floor
The trading floor retreat by Goldman Sachs Group Inc (NYSE:GS) is part of the company’s strategies to align its operations with the market realities with a focus on the long-term future. The company originally acquired its NYSE trading business in 2000 from Spear, Leeds & Kellogg LP (SLK) for $2.5 billion. Though Goldman is set to cede ground for IMC, it will continue to operate as a broker there as it executes trade on behalf of its clients.
Trading at NYSE and all other stock markets has undergone numerous changes over the past decade. When Goldman Sachs Group Inc (NYSE:GS) acquired its NYSE trading business from SLK more than a decade ago, electronic trading had not surfaced, and the bank operated its business through specialists that performed the role of trading in a complex manner.
Eyes on the horizon
As Goldman Sachs Group Inc (NYSE:GS) sells out business in some segments, it is also looking into other segments for new opportunities. The company recently led an investment round in an Israeli firm. The Goldman-led investment generated $35 million for the software firm Clarizen, which recently hinted about IPO.
