Goldman will soon offer clients access to more of its in-house tools, such as high-powered databases that analyze markets and manage risk, according to the firm’s executives. Those proprietary systems have long been key elements enabling Goldman to sidestep market turmoil and ring up outsized profits in better conditions.
Given direct access to these tools, Goldman clients could use the technology to build their own trading systems.
By deepening ties with those clients, Goldman hopes it will pick up other business from them as well.
Historically, Goldman clients could contact the firm and ask it to create customized investment strategies using its proprietary research and analytical tools. Now Goldman is rolling out the apps, that let clients access those analytics from their own desktops via a web-based platform.
The new web-based platform is in many ways an attempt by Goldman to bolster its technology bona fides.
Goldman plans to let clients customize the new apps and integrate them into their own systems, he said.
One of the first apps, called Simon, provides tools that allow smaller brokers to create and analyze equity-linked derivatives for their retail clients. Goldman officials have said 20 firms signed up for a pilot program that began in early 2014. That program helped more than double the firm’s sales of U.S. equity-linked notes last year, people familiar with the matter said.
A second app, Strategy Studio, aims to help money managers devise quantitative investments based on their views on broad economic themes. Reuters previously reported the launch of a Marquee-based product to help clients execute block trades.
Goldman has considered commercializing and ultimately spinning out other programs, including Lagoon, a program that allows employees to access business applications on their mobile phone securely, and Orbit, an email service, people familiar with the matter said.
“This is the business of the future,” said Richard Prager, head of global trading at BlackRock Inc., the world’s biggest money manager, with almost $5 trillion in assets.
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