Prime Malfunction At Goldman Sachs

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."

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...