The new offering, namely GSessions, provides Goldman clients the facility to buy or sell certain corporate bonds at set times of the day at a potentially lower cost than traditional "voice trading" over the phone with brokers at the banks, claims Goldman.
The banks have moved away from their traditional bond-dealing roles, as they are unable to meet new regulations, which make it more expensive for them to hold the debt.
GSessions facilitates clients to buy or sell bonds in set trading sessions and the bonds involved in the sessions are selected by the bank and advertised to clients in advance of trading.
The sessions begin with a five-minute order collection process, which assembles buying and selling interest from customers.
Goldman stands in between the trades and guarantees a certain amount of minimum liquidity, said the wealth manager.
In a particular trading session, if the bank is unable to completely match the ‘buy’ and ‘sell’ orders, the residual positions are sent to the bank’s bond traders to be managed and clients can view the "order imbalance" for certain sessions.
