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 making it available to clients.

Goldman started offering its famed cross-asset traded risk system