Back
29 May 2014
Trading environment abnormal - Goldman Sachs
FXStreet (Bali) - Low levels of volatility not seen since pre-GFC in 2007 are raising concerns among top financial firms.
According to Goldman Sachs Group Inc. President Gary Cohn, cited by Bloomberg, "low volatility and interest rates that are holding in tight ranges have resulted in an “abnormal” trading market."
“The environment for all the firms is quite difficult right now. What drives activity in our business is volatility. If markets never move or don’t move, our clients really don’t need to transact”, Cohn said.
Citigroup and JPMorgan Chase are running Q2 projections that suggest between 20% and 25% less revenue generated through trading activity.
“We think, at the end of the day, it’s economic in nature. We don’t have clear vision of economic growth or lack of growth”, said Cohn, referring to the reason why trading volume is this low.
According to Goldman Sachs Group Inc. President Gary Cohn, cited by Bloomberg, "low volatility and interest rates that are holding in tight ranges have resulted in an “abnormal” trading market."
“The environment for all the firms is quite difficult right now. What drives activity in our business is volatility. If markets never move or don’t move, our clients really don’t need to transact”, Cohn said.
Citigroup and JPMorgan Chase are running Q2 projections that suggest between 20% and 25% less revenue generated through trading activity.
“We think, at the end of the day, it’s economic in nature. We don’t have clear vision of economic growth or lack of growth”, said Cohn, referring to the reason why trading volume is this low.