The investment bank is giving clients access to its software tools that made it a trading powerhouse. As Fred Katayama reports, it hopes to win more business from clients.
Goldman Sachs is giving away for free the much envied software tools that made it a trading powerhouse. The Wall Street Journal reports that the investment bank is putting into the hands of its clients Securities DataBase, the powerful software it developed that it had refused to license to rivals like Deutsche Bank. That tool helps Goldman's traders price securities, analyze potential trades, and measure risk. It helped Goldman reap big profits betting on the rise and fall of the housing market roughly a decade ago. Goldman officials weren't immediately available for comment. The Journal reports that Goldman hopes to win more business from clients by letting them tap into their tools and analytics online and customize them. Sandler O'Neill senior analyst Jeffery Harte said, "It's kind of time to adapt and change. We're seeing market shares consolidating. This could give them the edge to attract more clients to get more market share." The Journal says the company's motives aren't exactly altruistic, for regulations have blunted Goldman's once feared trading advantages.