Goldman Sachs Sells NYSE Market-Making Business to IMC

Goldman Sachs Group Inc. (GS) agreed to sell its New York Stock Exchange market-making unit to IMC Financial Markets, a high-frequency trading firm.

IMC Chicago LLC, a unit of Amsterdam-based IMC, will become a designated market maker at the NYSE by acquiring Goldman Sachs’s rights, the companies said in a statement today. The transaction, which is expected to close in the third quarter, makes IMC a designated market maker for more than 630 securities and about 400 companies, according to the statement.

IntercontinentalExchange Group Inc. (ICE)’s NYSE relies on traders known as designated market makers, or DMMs, to facilitate the buying and selling of shares. Barclays Plc (BARC) and KCG Holdings Inc. (KCG) are the biggest DMMs, followed by Goldman Sachs and Virtu Financial Inc., a person with knowledge of the matter said last month.

Goldman Sachs’s DMM employees are to join IMC as part of the transaction, including floor traders and corporate-relations staff, the companies said.

Terms of the transaction weren’t disclosed. New York-based Goldman Sachs was seeking as much as $30 million for the business, a person with knowledge of the matter said last month.

Closely held IMC stands for International Marketmakers Combination and was founded in Amsterdam in 1989 by two traders who worked on the open outcry floor of Europe’s first options exchange, according to the company website. IMC is a market maker in equities, bonds, commodities and currencies on 90 exchanges globally.

To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net

To contact the editors responsible for this story: Nick Baker at nbaker7@bloomberg.net Steve Bailey, Jon Menon

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