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Goldman Sachs and Schwab Announce Options
Order Routing Agreement
NEW YORK, April 22, 2002 -- The Goldman Sachs Group, Inc.
(NYSE: GS) today announced that OptExSM Services LLC, its wholly-owned
subsidiary, has entered into an agreement with Charles Schwab &
Co. Inc. in which Schwab will route and execute single-leg options
orders via OptExsSM technology-based routing system. Terms
of the agreement were not announced.
The OptExSM system uses advanced technology to scan the entire
options marketplace, and route orders automatically based on the
best price available nationwide and other execution quality factors.
This hunt and seek approach for determining best price
contrasts with traditional static order routing.
Price, speed and access to liquidity are all critical to
options traders, said Lon Gorman, Vice Chairman, The Charles
Schwab Corporation. This business relationship places Schwab
and OptExSM at the forefront of a new frontier in the options world
-- one that relies on state-of-the art technology to enhance customers
trading experiences and results.
We are pleased that Schwab has chosen Goldman Sachs as its
partner for options routing and execution, said Robert Steel,
Vice Chairman of Goldman Sachs. We are committed to providing
the best of our technology and expertise so that Schwab and other
retail firms can share those benefits with their customers.
OptEx SM, which will act solely as agent on behalf of orders routed
through the system, will access liquidity from a number of specialist
and market making firms, including SLK-Hull Derivatives LLC. SLK-Hull
Derivatives is a wholly owned subsidiary of The Goldman Sachs Group,
Inc. and an affiliate of OptExSM. OptExSM is a service mark of Goldman,
Sachs & Co.
The Charles Schwab Corporation (NYSE:SCH), through Charles Schwab
& Co., Inc. (member SIPC/NYSE), U.S. Trust Corporation, CyberTrader,
Inc. (member SIPC/NASD) and its other operating subsidiaries, is
one of the nations largest financial services firms serving
7.9 million active accounts with $857.7 billion in client assets
through 429 domestic offices, 5 regional client telephone service
centers and automated telephonic and online channels. About 25%
of Schwab's client assets and 10% of its client accounts are managed
by approximately 6,000 third-party, fee-based investment advisors
served through Schwab Institutional. The Charles Schwab, U.S. Trust
and CyberTrader Web sites can be reached at http://www.schwab.com,
http://www.ustrust.com and
http://www.cybertrader.com
respectively.
Goldman Sachs is a leading global investment banking, securities
and investment management firm that provides a wide range of services
worldwide to a substantial and diversified client base that includes
corporations, financial institutions, governments and high net worth
individuals. Founded in 1869, it is one of the oldest and largest
investment banking firms. The firm is headquartered in New York
and maintains offices in London, Frankfurt, Tokyo, Hong Kong and
other major financial centers around the world.
CONTACTS:
Goldman Sachs
Media Contact: Ed Canaday
Tel: 212/357-0005
Investor Contact: John Andrews
Tel: 212/357-2674
Charles Schwab & Co., Inc.
Media Contact: Marta von Loewenfeldt
Tel: 212/819-5284
Investor Contact: Rich Fowler
Tel: 415/636-9869
OptExSM is a service mark of Goldman, Sachs & Co. |
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