Goldman Sachs Principal Transactions Update: 631 Million Shares

Latest NYSE Program Trading data out. Program Trading volume continues to decline, with 3.4 billion shares traded, down 700 million from the week before. Most notable is Goldman's dramatic drop in principal trading, down from on average 1 billion over the past 2 months to a mere 631 million. In the meantime, Credit Suisse is continuing its climb in Principal PT. As Zero Hedge will discuss over the next few days, CS may have positioned itself as one of the biggest principal holders of the single name - ETF basis trade, with, by some estimates, over $20 billion in net exposure. If true, that would make Boaz Weinstein's blow up in the CDS basis trade seems like child's play when the ETF trade reverts and CS is forced to run to the SNB for yet another bailout.

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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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BlackRock Confirms Goldman Q1 Profit Was Non-Recurring And A Result Of AIG Unwinds

This is kinda a huge deal... Peter Fisher, managing director of BlackRock (yes, that BlackRock), states in a Bloomberg interview that Goldman's first quarter trading profit is non-recurring in nature, and believes it was mostly due to AIG unwinds... It is a little shocking that BlackRock would have anything bad to say about the phenomenal resurrection of financial companies, and puts the huge "profit" in it's true light. After all PIMROCK are the direct beneficiaries of the perpetuating delusion that all is well with the banking system, so it is odd that a BlackRock professional would dare to go against the grain on this one.

Fully worth a listen (and yes, you need audio for this)

Full link below

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