Our Prime Brokerage Group provides services to help hedge funds manage risk, monitor their portfolios, maintain liquidity and build their businesses.
Clients in our agency lending program (“Goldman Sachs Agency Lending” or “GSAL”) grant us the authority to lend their securities on a fully collateralized basis to a client-approved list of broker-dealers/banks to achieve incremental returns on their assets.
Market participants include pension plans, endowments, foundations, mutual funds, insurance companies and investment management firms.
We possess the scale typically associated with a large custody program while maintaining the benefits of a specialized third-party lending agent.
Our platform differentiators include: a bespoke service model, program customization, a value-over-volume approach, a dedicated application development team, and the institutional resources of Goldman Sachs.
We partner with clients across the globe and are active in 30+ lending markets.
For more information, please contact us at AgencyLending@GS.com
Our Capital Introduction team provides our hedge fund clients with targeted introductions to the world’s leading pension plans, endowments, foundations, family offices, sovereign wealth funds, insurance companies, funds of funds, private banks and consultants.
Working seamlessly across our global network, our team can track, synthesize and utilize the information gained from our manager and investor relationships to make effective client introductions.
Pre-Marketing “Consultative” Work
Investor Events and Conferences
Hedge Fund Industry Analysis
Our Clearing expertise helps clients execute and settle transactions on over 97% of the world’s equities and derivatives exchanges.
Our capabilities combine professional service with a back office platform that allows us to clear 3 million trades per day.
Our platform provides a full set of tools that allow clients to work with multiple asset classes and currencies in a single consolidated account. Our clearing professionals complement this with a range of services, including consulting, risk management and securities lending.
The benefits of our solution include:
Experience. We have been serving the professional trading community for more than 30 years.
Global Platform and Technology. We offer a truly global platform, presenting clients with one consolidated account across asset classes and regions — and we support it with robust and stable clearing infrastructure.
Risk Management. Our professionals conduct proprietary stress tests with single margin requirement and cross product netting.
Reporting. Clients can choose from a comprehensive suite of multi-asset-class, multi-currency reports as well as sophisticated portfolio and performance reporting.
Dedicated Client Service. We offer superior coverage, training and integration.
Multiple Asset Classes. Clients can trade cash equities, futures, options, foreign exchange and fixed income instruments.
Execution Solutions. Via Goldman Sachs Electronic Trading (GSET), we provide direct market access, algorithmic trading strategies, smart order routing and access to non-displayed liquidity.
Every organization has different needs, and we work closely with our clients to develop customized solutions that draw on the expertise and resources of Goldman Sachs.
Our client service professionals act as a central point of contact, working with legal, compliance, risk, operations and technology to execute long- and short-term strategies. They engage with corporate action as well as trade and cash-management personnel, ensuring that every client's business is fully supported.
We provide 24-hour global coverage with over 100 experienced professionals located across the US, Europe and Asia. They have extensive practical experience in account management as well as broad operational expertise. Our experts offer in-depth knowledge of financial products, combined with local and global market intelligence, allowing us to service a variety of sophisticated business strategies.
Goldman Sachs has been a market leader in the evolution of OTC Clearing.
We participated in the initial launch of interest rate swaps and credit default swaps clearing for clients in December 2009 and will fully support client clearing in these products as the markets continue to evolve and expand. To support customer clearing for derivatives that were previously done bilaterally, Goldman Sachs has created Derivatives Clearing Services (DCS). The DCS team is aligned with and was built out of our globally recognized Prime Brokerage and Futures clearing business to maximize efficiency and provide consolidated reporting across asset classes.
DCS is designed to streamline the client clearing experience across products, asset classes and regions. In addition to credit default swaps and interest rate swaps, DCS will also support centralized clearing for foreign exchange, commodities and equity swaps as they become clearing-eligible. Our DCS business offers our clients numerous benefits including access to all major clearinghouses globally, margin solutions and optimized collateral management.
Objective Criteria for the Acceptance of Customers for Clearing
Goldman Sachs’s decision to provide swaps clearing services to any client is determined based on some or all of the following criteria: (i) the client’s credit profile, (ii) the client’s capital and other financial resources, (iii) the client’s expertise in trading complex financial products, including swaps, (iv) the operational, liquidity and risk management capabilities of the client in trading financial products, including swaps, (v) the types of swaps that the client intends to trade and clear at Goldman Sachs, (vi) whether Goldman Sachs has the ability to clear the swaps the client is intending to trade, (vii) whether commercial and legal terms can be agreed with the client, (viii) the approach the client takes to legal and compliance issues, (ix) satisfaction by the client of Goldman Sachs’s client on-boarding requirements, (x) Goldman Sachs’s credit exposure, capital and other financial resources/condition, and (xi) any other relevant objective considerations.
FRANDT Requirements: Goldman Sachs International (GSI) and Goldman Sachs Bank Europe SE (GSBE)
EMIR Refit, amending EMIR, requires clearing firms to offer and provide OTC clearing services to in-scope clients in the European Union (EU) under terms that are fair, reasonable, non-discriminatory and transparent (principles known as FRANDT). The conditions under which terms are considered FRANDT, are specified in more detail in the FRANDT Delegated Regulation.
GSBE, a clearing broker located in Germany, and GSI, a clearing broker located in the UK, may each provide OTC clearing services to clients in the EU that are subject to FRANDT. In connection with certain FRANDT requirements which require the publication of certain information, documentation and disclosures on a clearing firm’s public website, please refer to the following documents related to GSI and GSBE:
FRANDT: Goldman Sachs & Co. LLC (GSCo.)
Goldman Sachs & Co. LLC (GSCo.), a futures commission merchant registered as such with the United States Commodity Futures Trading Commission, may provide OTC clearing services to clients in the EU. To the extent FRANDT applies, GSCo. makes the following documents available:
With over 30 years of experience, Goldman Sachs has an extensive global footprint in the futures market covering 55 major derivatives exchanges worldwide.
Goldman, Sachs & Co. is regularly listed among the largest FCMs with respect to the amount of segregated and secured funds held on behalf of customers according to data published by the CFTC. The size and diversification of our client base, along with the amount of Goldman Sachs capital committed to the business, provide our clients with added security.
Voice Execution. Our agency-only futures desk has extensive experience executing futures and options on futures. Our presence in New York, Chicago, San Francisco, London, Hong Kong, Sydney and Tokyo ensures that our clients receive a global perspective and 24-hour coverage. Our voice execution desk helps clients navigate today’s volatile markets by providing market insight and analysis of trade flows across asset classes.
Electronic Trading. We provide our clients with numerous options for electronic execution via many industry trading platforms, including REDIPlus. In addition to electronic execution platforms, Goldman Sachs provides integrated solutions with a broad selection of ISV and OMS platforms as well as connectivity to client-developed software. We also offer clients access to advanced and customizable trading strategies through our futures algorithm suite.
Clearing and Reporting. We offer clients secure access to a sophisticated suite of reports and tools through our Marquee Portal, including real-time trade reporting, robust clearing data, and customizable report sets. Additionally, we offer work flow tools to assist clients in the daily reconciliation of trade and cash flows as well as interactive margin tools. Marquee allows clients to customize reports, query archived data and subscribe to receive reports in a variety of formats and flexible delivery methods.
Our Consulting Services team helps hedge fund managers launch, support and build their businesses. With over a decade of experience and offices located across the US, Europe and Asia, we combine local focus with global expertise and coordination.
Our team members include industry veterans with backgrounds in areas such as accounting, law, technology, operations, fund administration and property and infrastructure.
Our team is aligned into four practice areas:
Organizational planning, including budgeting and cash flow projection, service provider selection, investor due diligence process preparation and consulting on compliance and governance.
Property and infrastructure consulting, covering real-estate sourcing strategies, architectural and engineering considerations, project management, network design and consulting, contract and proposal review and more.
Business Consulting, including vendor analysis and introduction, systems implementation, workflow construction, in-sourcing vs. out-sourcing analysis and structural considerations.
Human Resources, for issues including talent sourcing strategies, compensation, policies and procedures, HR service provider selection, employee training, succession planning and employment separation.
Goldman Sachs Advisor Solutions is invested in servicing the industry’s preeminent advisory practices, including Registered Investment Advisors and advisory teams seeking their independence. Click here for more.
We offer a global, multi-asset class, multi-currency reporting and technology platform that scales with clients as they expand into new strategies, markets and products.
It covers everything from real-time portfolio management applications to post-trade operations utilities and portfolio accounting reports. This allows us to assist our clients throughout the lifecycle of the trade and across their organization.
Access and Integration
We understand the importance of supporting our global clients across a wide range of investment strategies and products. Our flexible infrastructure allows for customizable solutions to meet clients’ specific needs. We offer a wide range of data formats and secure delivery options, and we work to integrate our solutions with our clients’ existing systems.
Service and Support
Client service is a key component of all our solutions. We have business professionals and experienced prime brokerage technologists available to provide training and support, and our global Client Technology Services team responds to client inquiries 24 hours a day, seven days a week.
The Prime Brokerage Group provides financing solutions and risk models that allow hedge fund managers to execute a wide range of investment strategies, while still providing a framework that is predictable and reliable across all market conditions.
We strive to:
Our modeling of risk is comprehensive and designed to fully reflect our clients’ strategies within a single and flexible stress test. This test is intuitive, transparent and stable, using clearly stated, predefined scenarios that are not sensitive to prevailing market volatility. Using this model we are able to provide a unified risk methodology across all factors, including equity, credit, interest rates, foreign exchange, volatility and liquidity.
As the premier global provider of securities lending services, we offer our clients industry-leading insights into securities lending flow and superior access to supply.
With trading hubs in London, New York, Hong Kong, and Tokyo, our global team provides 24-hour access to over 50 developed and emerging markets. We have a strong reputation for significant and longstanding relationships built on the fundamentals of client service, borrow liquidity and borrow protection.
The Equity Synthetic Platform provides solutions such as efficient single stock and index exposure, market access, and custom hedges to a wide range of clients.
The platform allows for various structures and can be flexible according to clients’ preferences. We tailor reset schedules, timing and frequency of settlements, contract maturity, cash flow exchanges and unwind methodology, among other features.
Clients have access to a full global suite of equity exposure across index, sector, custom basket, futures and single stocks. We provide execution via both our high and low-touch channels.
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