Flash Heard: Goldman Stands Out in Equities Trading -- WSJ

By Telis Demos

Goldman Sachs shares are the best in a bad lot of bank stocks today, rising slightly versus a 1%-plus drop in the KBW Nasdaq Bank index. That in turn has a lot to do with its own stock-trading prowess.

Goldman reported a year-over-year surge in equities-trading revenue, which jumped 72% over the third quarter of 2025. That was driven by a near-doubling of its revenue in equities financing, a business that involves lending to trading clients, particularly via what's known as prime brokerage.

Here, Goldman is reaping the benefits of a few investments. One is the bank's dedication of more of its capital to the business of financing trading. The Federal Reserve's current proposals for capital requirements have lightened the burden compared with what many big banks were preparing for during the Biden years. Goldman has put a chunk of the freed-up resources to work in trading.

It has also been building out its trading presence in Asia, expanding at a time when markets such as Korea and Japan have boomed in activity. Executives on Tuesday, speaking to analysts, cited "deliberate multiyear investments in Asia" as a factor in financing revenue growth, and noted "strong activity across Asia" in that business.

Still, Goldman's tone was somewhat cautious, telling analysts that it saw "deleveraging" and "disruption" over the course of the third quarter in financing-a period that included the collapse of heavily-leveraged hedge fund Situational Awareness.

So a small bump in Goldman's stock, rather than a giant leap, seems about right.

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(END) Dow Jones Newswires

October 13, 2026 14:42 ET (18:42 GMT)