GREENWICH, Conn. More than half of all equity trading volume for the fiscal year ended June 30 among large trading institutions involved portfolio trading, according to a Greenwich Associates survey.
Institutions surveyed in Greenwichs 2008 Portfolio Trading report increased the share of their total equity trading volume to more than 50% for the year, up from 45% for the previous year. That growth resulted in a 25% expansion in overall portfolio trading volume generated by these institutions bringing the total for the value of shares traded to more than $1.75 trillion for the year.
Goldman Sachs and Lehman Brothers benefited the most from that expansion of program trading, the survey found.
An increase in international trades spurred the increase in equity volume, making up almost 30% of portfolio trading volume for the year ended June 30, up from less than 25% the previous year. Slightly more than half of non-U.S. volume involved United Kingdom and continental Europe trades.
In terms of market share, Goldman Sachs is clearly ahead of Lehman Brothers at the top, Greenwich Associates consultant Jay Bennett said in a news release. Ranking next is a group that includes Merrill Lynch and the one non-investment bank, ITG, followed by Morgan Stanley, Citi and Credit Suisse.
Greenwich conducted interviews with the 124 institutions between December and February.