By Anirban Sen NEW YORK (Reuters) -Goldman Sachs is urging U.S. regulators to allow large banks that sell corporate bonds on behalf of investors to delay public reporting of the largest trades of such bonds, according to an internal white paper published by the bank. In the paper, which was reviewed by Reuters, Goldman is arguing that current disclosure requirements set by Wall Street regulators force large liquidity providers to disclose sensitive details of a transaction before dealers can manage the r ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $209 million, compared to $210 million in the prior year, indicating a slight decrease [28] - Commission revenue decreased by 2%, primarily due to lower fees per million and market share in U.S. Credit, partially offset by strong market volumes driven by increased volatility [28][32] - Services revenue increased by 7%, with Information Services revenue rising by 9% to $13 million, driven by new contracts [29] - Operating expenses increased by 2% to $120 million, reflecting cost discipline and lower variable costs [33] - Diluted earnings per share were reported at $0.40, or $1.87 per share excluding notable items [30] Business Line Data and Key Metrics Changes - Record U.S. Credit Average Daily Dollar (ADD) was $9 billion, up 2% [12] - International products saw record ADD of $6 billion, up 11% [12] - Municipal bonds experienced a significant increase in Average Daily Volume (ADV) of 42% [13] - Automation trade volumes reached a record of $110 billion, up 17% [14] - Open Trading ADV hit a record of $5 billion, an increase of 8% [15] Market Data and Key Metrics Changes - U.S. High Grade estimated market share increased to 20% in March, the highest since December 2023 [10] - U.S. High Grade market share was reported at 19.4%, up 120 basis points year-over-year [24] - Total trading ADV grew 68% year-over-year to a record $57 billion, with total credit ADV increasing by 32% to $18 billion [23] Company Strategy and Development Direction - The company is focusing on expanding its algo suite for rates and launching an enhanced Request for Quote (RFQ) solution [8][10] - The strategy includes diversifying product offerings and enhancing technology investments to drive growth in U.S. Credit market share [5][39] - The company plans to roll out a high-touch block trading solution and a new Midex solution to address dealer needs [44][22] Management Comments on Operating Environment and Future Outlook - Management noted that the current market environment is characterized by uncertainty, which is favorable for the business model [42] - There is an expectation of higher levels of volatility in the market, which could drive increased turnover in the bond market [43] - The company is optimistic about the growth opportunities presented by new product releases and the current market conditions [44][46] Other Important Information - The company expects to close the RFQ Hub transaction later in May, which will consolidate RFQ Hub into its financials [37] - The effective tax rate is expected to increase to 41% to 42% due to a new reserve for uncertain tax positions [36] Q&A Session Summary Question: Outlook for increased share gain moving forward - Management indicated that the current market environment is favorable for share gains, with expectations of continued volatility and liquidity needs from clients [42][43] Question: April market behavior and client share - Management observed sustained market velocity and heightened trading activity, even as volatility decreased from peak levels [50][51] Question: Fee capture in high grade - Management explained that increased portfolio trading and dealer-to-dealer business, which have lower capture rates, are impacting overall fee capture [56][60] Question: Strength of portfolio trading solution - Management highlighted enhancements in the portfolio trading solution and positive client feedback, indicating strong demand for analytics and data [66][68] Question: Rollout of X Pro into Europe - Management expressed optimism that the rollout of X Pro would accelerate portfolio trading share, as it has already captured significant market share in the U.S. [111]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $209 million, compared to $210 million in the prior year, indicating a slight decrease [27] - Commission revenue decreased by 2%, largely due to lower fees per million and market share in U.S. Credit, partially offset by strong market volumes [27][30] - Services revenue increased by 7%, driven by a 9% increase in Information Services revenue [28] - Operating expenses increased by 2% to $120 million, reflecting cost discipline and lower variable costs [31] - Diluted earnings per share were reported at $0.40, or $1.87 per share excluding notable items [29] Business Line Data and Key Metrics Changes - U.S. Government bonds saw significant growth, with a single-day trading record of $102 billion on April 9 [5] - Record U.S. Credit Average Daily Dollar volume (ADD) increased by 2% to $9 billion, while international products recorded an 11% increase in ADD to $6 billion [10] - Municipal bonds experienced a 42% increase in Average Daily Volume (ADV) [11] - Automation in trading reached record volumes of $110 billion, up 17% [12] - Open Trading ADV hit a record of $5 billion, an increase of 8% [13] Market Data and Key Metrics Changes - U.S. High grade market share increased to 20% in March, the highest since December 2023 [8] - Total trading ADV grew 68% year over year to a record $57 billion, with total credit ADV up 32% to $18 billion and total rates ADV up 93% to $39 billion [21][22] - U.S. High grade market share was reported at 19.4%, up 120 basis points from the prior year [23] Company Strategy and Development Direction - The company is focusing on expanding its algo suite for rates and launching an enhanced RFQ solution [7] - A new high touch block trading solution is set to launch, aimed at improving client trading experiences [44] - The company is transitioning to a protocol-agnostic model, providing multiple execution protocols to meet diverse client needs [42] Management's Comments on Operating Environment and Future Outlook - Management noted that the current market environment is characterized by uncertainty, which is favorable for the business model [41] - There is an expectation of higher levels of volatility in the market, which could drive increased turnover [41] - The company anticipates continued growth in market share due to new product releases and enhancements [45] Other Important Information - The company expects to close the RFQ Hub transaction later in May, which will consolidate RFQ Hub into its financials [35] - The effective tax rate is expected to increase to 41% to 42% due to a new reserve for uncertain tax positions [34] Q&A Session Summary Question: Outlook for increased share gain moving forward - Management indicated that the current market environment is favorable for share gains, with expectations of higher volatility and liquidity needs from clients [41][42] Question: Insights on April's market behavior - Management observed sustained market velocity and elevated trading volumes, particularly in high yield, despite a decrease in volatility [50] Question: Update on fee capture and its drivers - Management explained that increased portfolio trading and dealer-to-dealer business, while growing, come at a lower capture rate, impacting overall fee capture [56][60] Question: Strength of portfolio trading solutions - Management highlighted enhancements in portfolio trading, including the new X Pro platform, which has seen significant adoption and positive client feedback [68][70] Question: Rollout of X Pro into Europe - Management expressed optimism that the rollout of X Pro in Europe will enhance portfolio trading share, leveraging modern technology and data analytics [110]