Goldman ##bank is said to be retreating from its role as a top lead market maker ( LMM ) for publicly - traded companies as smaller digital start - ups increasingly take up the mantle . The bank is said to have decided to pull back because of regulatory costs . investors exploit backstop markets by providing liquidity either by using 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 .
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.