Goldman: We reported trading data

July 6, 2009

Goldman Sachs is trying to shoot down speculation that the weekend arrest of a former employee has anything to do with the firm mysteriously disappearing from a New York Stock Exchange list of the firms with the most active progam stock trading systems.

Goldman spokesman Michael Duvally says: “According to the data Goldman Sachs submitted, we are certain we were among the top firms in terms of program trading volume for the week ending June 26.”

What Duvally is referring to is a weekly program trading report from the NYSE that lists the trading volumes for the top 15 firms. Goldman usually ranks at the top of this weekly chart. But it mysteriously disappeared from the chart for the week ending June 26.

And the NYSE now says it goofed in not putting Goldman’s name on the list.

“Due to an error on our part, the program trading report needs to be revised and we will have a revised list out later this week,” says NYSE spokesman Ray Pellecchia. “It was a system error on our part.”

The NYSE confession would seem to throw cold water on speculation that Goldman dropped out of the top 15 because it scaled back on program stock trading after learning that former employee Sergey Aleynikov allegedly stole access codes to its automated trading platform. Aleynikov, arrested on July 3, remains in federal custody at the Metropolitan Detention Center in Brooklyn, after failing to post bail.

Of course, we still want to see those revised numbers to see if there’s any significant decline in Goldman’s trading volumes. If that occurs, it could still indicate the firm scaled back some trading activity as this scandal was unfolding.

But for now, we’ll just have to wait and see and take Goldman’s word that these incidents are unrelated.


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I wonder if the SEC checked this code to see if it doesn’t manipulate the markets – for example, when it says it uses huge volumes, this is clearly it for me!

It is described as a system that quickly reacts to news, but there is no free lunch like that out there. This system is here to destabilze the markets, the small investors who are naive enough to think that equity markets are a synonym to investment rather to gambling.

Why intelligent people at GS don’t have enough intelligence to see that with such secret codes, they are going to kill capitalism? They don’t care, as long as they can buy their villas before it!

From a common wealth point of view, having many such trading systems could have 2 consequences:
1) optimistic case: making markets more efficient
2) pessimistic case: making things uncontrollable and someday the whold system will eventually crash down

The value of our markets is in the hands of robots and artificial intelligence… does this sound reassuring to you?? This is such a nonsense, that if we can such a nonsense, we will anyway crash someday, no matter how.

Good luck everybody.

Posted by Ricardo | Report as abusive

Or Goldman Sachs might be concerned that their trading software would not produce good results if there was an identical version in use by someone else looking for the same trading opportunities.

Posted by FJoeC2 | Report as abusive

Honestly… Do you think that the SEC is doing anything other than going out to lunch with market makers?? The SEC is either the most incompetent bunch out there, or the most clueless. Even after all of the AIG crap, they still to this day have not even sent down investigates to AIG offices to find out what was going on….

The SEC (and everyone else) will continue to ignore everything until people stop trading completely due to sheer manipulation that is going on…

How odd. The biggest trader is just not reported by the program that collects the data and no one notices until the list is out? How reliable a stock exchange is that anyway?
As to Ricardo’s question: According to the patterns in trading of two days, there is no difference in behavior in the Dow Jones Industrial and the S&P 500. One might think this is odd, as the former covers only 100 and the later 500 equities. Yet, their graphs look exactly the same on several days. So, indeed why does the SEC not check for market manipulation?  /07/02/more-odd-things-happen/  /07/02/more-odd-things-happen/

Interesting the tag cloud to the right…… At what point does someone like GS have an unfair advantage in the market? Can we all have a supercomputer to run trading algorithm in real time with multiple market feeds? If that’s how they make their money, then we should probably have the same tools. We bailed them out.

Posted by George | Report as abusive

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