Tuesday, 21 February 2017
Last updated 9 min ago
Aug 8 2011 | 11:24am ET
Amidst one of the wilders days for the market in recent memory, Goldman Sachs' prime brokerage had a rather unwelcome message for some of its clients.
Traders on Friday were greeted by an error message on Friday telling them, "due to unexpected trade processing delays, we are experiencing custody reporting delays." Goldman Sachs told Business Insider that the problem was not within its prime brokerage but with client execution data.
The bank said that larger hedge funds were not affected, and that it was primarily smaller market-makers who took the hit.
Still, the cryptic message sent some clients scrambling for other brokers, while others complained that the issue was making it impossible for them to trade—and that Goldman was doing little to assuage them.
"We're not even 100% sure what are positions are, so we don't know what to buy or sell," one told BI. Another complained, "they are telling us nothing. No ETA for when we can know where we stand."