Reuters with the report, citing disclosures, fund managers and other trading firms this month.
- Goldman has told fund providers it is scaling back its role as a top lead market maker (LMM) for ETFs
- Has already slashed the number of funds it supports in that capacity
- Relatively high regulatory and other costs of operating as an LMM prompted the pullback by Goldman, one of the few large banks remaining in that role, some people said
- A spokeswoman for Goldman declined to comment on the bank's market-making business.
Plenty more here at the Reuters article
--
I note this in the Reuters report:
- The move signals the shifting landscape of making markets in many assets away from traditional broker-dealers towards smaller, electronic-focused upstarts.
Which makes sense, such developments are not new.