Goldman Sachs has hit back at reports that GSessions, its new corporate bond trading platform, is delayed due to technical issues.
It was revealed in March that Goldman was looking to roll out an electronic system for corporate bonds, which are traditionally traded via desk-based traders.
The Financial Times reported today that the launch, which it said was due to happen in mid-May, has been delayed as a result of “trade reporting problems". It also stated that the investment bank was being cautious due to recent high-profile problems with electronic trading systems, such as NASDAQ’s delay during the Facebook IPO.
However, sources familiar with the matter have told Computerworld UK that this isn’t the case and that the delay is due to ‘sequencing’ issues.
“Firstly, we never had a firm, announced launch date for this product, something that the FT didn’t point out,” said the Goldman employee.
“Any delay from our expected launch date is not the result of a technical problem; it’s more due to sequencing. There were a couple of things that we wanted to add before we launched the product.”
He reiterated: “It has nothing to do with technical problems – from a technical perspective we are ready to go now.”
Goldman Sachs has for many years used advanced electronic trading systems for the stock markets, but bond trading as an industry has lagged behind. When GSessions launches, it will be one of the first investment banks to introduce full electronic trading for bonds.