Wall Street’s elect has it on pretty good authority that its lack of revenue growth, re: debt, forex and commodities trading is nothing to be worried about at all.
Goldman Sachs Group President Gary Cohn insisted at a conference last week that his firm was expanding market share in fixed-income, currency and commodities trading. This is even though, as a portion of the aggregate trading revenue reported by big banks, Goldman’s revenue has barely budged. Judged by revenue, Citigroup has increased its market share the most since 2011, according to a recent report from Credit Suisse Group. And the biggest gainers last quarter were Deutsche Bank and Morgan Stanley.
Mr. Cohn argued that since the current low-volatility environment depresses trading revenue, the normal way of gauging market share no longer works. Goldman’s traders are winning more trades, he said, but “it’s tough to see.”