Hedge funds trading through Goldman Sachs are being greeted Friday morning with a confusing message that is driving some of them crazy.
“To our Valued Clients, Due to unexpected trade processing delays, we are experiencing custody reporting delays. We apologise in advance for this inconvenience,” the firm tells clients on its website.
This has sent clients scrambling to find other brokers who can properly position them for the morning trading after one of the biggest down days in years.
“We’re not even 100 per cent sure what our positions are, so we don’t know what to buy or sell,” one Goldman Sachs client said.
Part of the frustration is that Goldman is being very reticent about the problem.
“They are telling us nothing. No ETA for when we can know where we stand,” another client said.
Goldman was not immediately available for comment.* UPDATE: Goldman says problem wasn’t prime brokerage but client execution data. Big hedge funds not affected, smaller market maker clients in dark.
Here’s what the message looks like: