From swaps to software: rivals eye Goldman and JP tech plans

Goldman Sachs and JP Morgan are upending years of bank strategy by making their front-office risk systems available to clients – a move that is dividing other dealers, as Luke Clancy reports. While SocGen and others see it as the future, others dismiss it as a sideshow

With bid/offer spreads shrinking, and regulatory costs still growing, some banks believe they have found a new way to bolster their under-pressure trading businesses – an untapped source of value that might add hundreds of millions of dollars a year in sticky, predictable revenue. This goldmine is the risk technology used by the banks’ traders and risk managers, and the plan is to monetise it by