Thursday, June 4, 2009

Goldman Sachs Principal Transactions Update: 741 Million Shares

Latest NYSE Program Trading data out. Program trading last week ramped up by 27% from 26.5% the week before, to 33.7% of all NYSE buy+sell volume, and much higher than the 52 week average of 25.3%. The 15 most active member firms traded 1.9 billion shares for principal accounts, compared to 1.6 in the prior week. The top principal trader is and has always been (at least for the past 9 months) Goldman Sachs, with 741.7 million principal trades, virtually nothing in facilitation and 115 million in agency, keeping the principal to non-principal ratio at just under 7x.

And if the Goldman Supplemental Liquidity Provider team is patting itself on the back for its tremendous contribution of being the major (and likely only) liquidity provider, maybe they can explain the insane bid/offer spreads on the SPY at close today (and everyday): one could drive a Tengzhong Sichuan-made Hummer/forklift through that spread blindfolded (no, JPM, nobody is interested in your constant SPY machinegunning with 5k SPY blocks on every single goddamn market dip).

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