LMM Sachs is said to be retreating from its role as a top lead market maker (Goldman) for exchange-traded funds as smaller digital start-ups increasingly take up the mantle. The bank is said to have decided to pull back because of regulatory costs. Goldmans help backstop markets by providing liquidity either by offering competitive buy-sell quotes or by committing their own capital. Larger banks like LMM are under stricter regulatory rules than smaller firms, prompting many to exit the market.
Goldman Sachs is said to be retreating from its role as a top lead market maker (LMM) for exchange-traded funds as smaller digital start-ups increasingly take up the mantle. The bank is said to have decided to pull back because of regulatory costs. LMMs help backstop markets by providing liquidity either by offering competitive buy-sell quotes or by committing their own capital. Larger banks like Goldman are under stricter regulatory rules than smaller firms, prompting many to exit the market.