Risk Bids Making a Push.

Traders, November, 2007 by Ramage, James

Don't call it a comeback, but risk bids on program trades are on the rise. With competitive pricing, manageable volatility and ever-improving technology, industry watchers expect to see growth in principal bids for program trading.

According to Goldman Sachs, its clients' use of principal bids is on the upswing this year. In fact, Goldman sees a rise in program trading across the board-both risk and agency business, when comparing 2007's figures to last year's. Goldman has a good vantage point on the popularity of principal bids. Joe Montesano, who heads the firm's risk business on the U.S. program trading desk, estimates that it wins about 40 percent of the risk programs that it bids on.

Still, industry insiders say the bulk of the program...

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