Douglas Yones, NYSE's head of ETFs, said that while some of its liquidity providers "have narrowed their presence, it has opened the door for many more firms to enter the marketplace with positive results."
Goldman reported overall trading revenue of $3.1 billion during the second quarter, a drop of 17 percent from the year ago period and the worst start to a year since Chief Executive Lloyd Blankfein took the helm of the bank.
The bank's once-massive LMM franchise was partly the inheritance of its $6.5 billion acquisition in September 2000 of Spear Leeds & Kellogg LP, which served as lead for the first U.S.-listed ETF, the SPDR S&P 500, in the early 1990s.
In 2014, Goldman wrote down the value of the market making operations, including its ETF lead market making rights, and signaled a broader change in its strategy when it sold some related trading operations to IMC.
This article was provided by Reuters.