TECHNOLOGY - DIVISIONAL OVERVIEW
Technology Business Unit Descriptions
Technology is split into business units listed below: ? Banking Technology (BTech) ? Technology Infrastructure (Infra) ? Equities Technology (Eq) ? Fixed Income Currency & Commodities Technology (FICC) ? Firmwide Technology (FW) ? Goldman Sachs Asset Management Technology (GSAM) ? Private Wealth Management & Custody Technology (PWM) ? Global Investment Research Technology (IRT)
On the following pages are brief synopses of each group as well as examples of the technologies that each of these business units utilise.
TECHNOLOGY - DIVISIONAL OVERVIEW
Banking Technology (BTech) supports the Investment Banking Division (IBD), Merchant Banking Division (MBD), and the Executive Office for all their application development needs. IBD Investment Banking??s primary function is to offer strategic advice to clients on their current business and capital structure and to execute agreed strategies on their behalf. This may take the form of mergers and acquisitions, defense against hostile takeovers, Initial Public Offerings (IPOs), debt or equity issuance, risk hedging through the use of derivatives, etc. IBD has a highly mobile and global workforce and due to the nature of the role they play and require a 24x7 support model. MBD The Merchant Bank manages a number of Private Equity funds investing in opportunities around the globe and is split into 2 main areas: the Principle Investment Area (PIA) which invests in Companies and the Real Estate Principle Investment Area (REPIA) which invests in Real Estate portfolios. Executive Office The Executive office includes all the Senior leadership of the firm together with Corporate Communications and the Press Office. BTech supports these businesses by building applications that assist the workflow of the deal activities and that provide up-to-date market intelligence from both internal proprietary sources and from 3rd party data sources. All of these groups potentially have access to material non public information and therefore are considered to be on the Advisory side of the Chinese Wall separated from Sales and Trading. BTech??s additional role is to build systems, processes and procedures that assist in the implementation of the Chinese Wall.
? ? Banker Desktop - Global team responsible for building
applications that are used by the Bankers in the executions of deals. These include bespoke CRM systems, pipeline management, deal workflow, company intelligence. Management Information Systems ?C Global team responsible for building applications to support the middle and back office functions such as Management reporting, expense management, P&L analysis etc. Core Systems ?C Global team responsible for building the application development framework and core applications that support the business.
Technology Infrastructure, provides global thought leadership, solution development, delivery and support for a broad suite of technology products and services at Goldman Sachs. It leverages global expertise to develop leading-edge technology solutions that meet business demands and differentiate the firm's technology offerings in the marketplace. Technology Infrastructure enables the operation of the firm by managing an extensive computer platform and global communication networks, while addressing technology, compliance and reputational risk and resilience. Global Services designs, implements and manages the technology infrastructure, operational footprint and operating risk of the firm. Its components are organized functionally as Client Services, Compute Services, Services Engineering and Services Operations Client Services ?C responsible for the provisioning and support of all user workplace technology. Technology scope includes products and services used within any Goldman Sachs office space as well as off-premise stationary and mobile locations. Compute Services - supports foundational components of the firm's infrastructure and select critical applications. Supported components include UNIX Infrastructure, Windows Infrastructure, Database Services, Data Management Services, EAMS and Messaging Infrastructure Services. Services Engineering - develops the operational best practices for the Technology Infrastructure organization, including change, incident and problem management processes. The intersection of systems management, data center engineering, and critical infrastructure with the design and engineering of our runtime operating environment aims to enhance our operational toolkit via the introduction of automated controls and standardization. Services Operations - manages the end-to-end installation for Goldman Sachs' global workspace and data centers, ensuring ongoing capacity management and process efficiencies. Additionally, it has responsibility for global production system
monitoring and work schedule execution for technology infrastructure. Business & Application Solutions integrates and differentiates the firm??s business products and applications through technology. Its components include Business
TECHNOLOGY - DIVISIONAL OVERVIEW Applications, Workplace Infrastructure Engineering and Applications & Systems Infrastructure. Business Applications and Services - works with business and application development teams at Goldman Sachs to understand their use of technology infrastructure and identify technology solutions that best meet their application and infrastructure requirements. Workplace Infrastructure Engineering - builds and integrates secure, reliable, adaptable user-facing technology components to improve productivity. Applications and Systems Infrastructure (ASI) - brings together several key infrastructure functions under one organization, uniting knowledge experts and capitalizing on natural synergies across product development, deployment, engineering, configuration and lifecycle management areas. The ASI area includes Database Technologies, Server Systems Administration, Computing Platforms Engineering, and Applications Infrastructure and Messaging. ASI collaborates, partners, and builds platform solutions for our application development and Technology Infrastructure clients Core & Franchise Infrastructure designs, implements and develops the firm??s strategic infrastructure investment and risk profile. The Network, Voice & Multimedia, Storage and Building Technology Infrastructure teams constitute this group. Network, Voice & Multimedia - provides a secure, efficient, and highly available network infrastructure and voice communications systems to Goldman Sachs employees and external clients, while constantly staying abreast of new developments in the sector. Storage Engineering - Global Backup and Storage Engineering is responsible for developing, implementing and supporting the firm's storage utility. With a current footprint of over four pedabytes, the firm's critical data resides within this utility, and the business expects this information to be available and recoverable in the event of service disruption. Building Technology Infrastructure (BTI) - is the principle planning function within Technology for all corporate real estate projects. BTI collaborates across an intersection of the Technology and Corporate Real Estate groups, bringing disciplined leadership to the areas of technology strategy, engineering, planning, design and implementation for the firm's technology-reliant trading, data center, and general purpose spaces. Technology Risk protects the systems and data of our firm and our clients, equips our people with understanding and tools to measure risk and enable the use of technology, and evangelizes controls monitoring solutions. It performs these roles through Business
Application Controls & Security, Infrastructure Controls & Security and Program Management teams. Infrastructure Risk and Monitoring - includes Risk Consulting and Risk Measurement and Solutions. These two teams work with infrastructure owners in Technology Infrastructure to measure and manage risk.
TECHNOLOGY - DIVISIONAL OVERVIEW Application Risk Assurance - provides guidance to business and application development teams to help them identify and manage technology-related risk. Enterprise Privilege Management - establishes the procedures, practices, training, roles and responsibilities for the firm??s privilege management environment, including maintenance of system and application privileges, rules and authorizer trees. Business Continuity Planning - works to protect Goldman Sachs and our clients from the threat of business disruption. BCP policies and procedures provide an operating framework and set out requirements and common approaches for tackling the key risks facing the firm. Security Architecture - works with Goldman Sachs teams to define a strategy to evolve network, platform and application security. The team??s efforts include documenting security products, solutions and toolkits, the firm??s current security architecture and a map to its security future.
The Equities Technology group consists of approximately 200 people and is responsible for supporting all the activities of the many Equity based businesses in front, middle and back offices. Many of these businesses operate on both a local and global basis and require that members of the Technology team also act as part of both. Divisional Core Groups The Core Trading Services (CTS) systems: group comprises the following main projects and
The European OMA team is responsible for strategic Order Management initiatives and for supporting the current order management infrastructure. OMA is used to route orders for the trading and sales trading functions and provides the global strategic architecture for all listed products. The Position Keeping team are responsible for FTS (part of the Fidessa suite of products from Royal Blue), SETS, iCOLT and PETS. The team supports real-time position keeping for trading desks across Europe and for the international desk in New York. This involves processing trade bookings and executions to accurately reflect a trader's position. A real-time market data feed for pricing allows real-time P&L to be calculated. The position keeping team is also responsible for position and trade level reconciliation through the TRECS tool. The migration to a single position leaping system PETS is under way globally and part of this team primary responsibilities. The
Connectivity team is responsible for both client and market connectivity in Europe. Much of the client side connectivity is undertaken using the FIX protocol and is becoming increasingly more important as Direct Market Access (DMA) products become more popular with clients.
TECHNOLOGY - DIVISIONAL OVERVIEW The GSAT team is responsible for the development of automated trading engines and algorithms that enable GS to trade on their own, or clients, behalf to meet specific targeted trading goals. The Core Sales Technology group comprises the following main projects and systems: The MIS team who are responsible for generating and distributing reports to both the sales team and management on metrics by which they measure their performance, these include, revenue, gross credits and Profit and Loss. The Merchandising team builds systems to help with the distribution of sales ideas and market information both internally, to the institutional sales force, and externally to clients. The CRM team develops a system called ClientLink that enables the tracking of communications with clients and is a general repository of all information and functionality that is pertinent to relationship management. The Data Mart team are responsible for the organizational data repository that holds all trade based data on a Trade + 1 basis and makes that available through both OLTP and OLAP technologies, This is the main data source for EIS and MIS for Sales and ultimately trading. The Equity Trade Management Technology projects and systems: group comprises the following main
The London Hydra team is part of a global team with staff in London, New York, Bangalore, Hong Kong and Tokyo that develops and supports our middle office solution system for the transaction processing of non contractual products globally. There are presently instances handling our high volume equities flows processing millions of executions a day. The processing aspect involves trade validation, trade generation, trade figurations, trade explosions and trade netting. The system also holds the regulatory rules for the European exchanges for which GS is a member, and trade reports to these exchanges. It is also used by operations to provide same day matching functionality with brokers to reduce settlement breaks. Hydra is a strategic system for the firm and we are continuously moving existing flows onto this platform and adding new businesses to it. It is designed to have high performance and to scale horizontally by adding additional hardware without having to segment business flows. Itis a multi-process design that is also highly multi-threaded to achieve high throughput rates necessary to meet ever increasing volumes growth. CHUB supports Equities electronic trade confirmation including US, European and Asian products and is responsible for the development and support of the CHUB electronic trade
confirmation system, which interfaces with Thomson's OASYS Global service. STB is the Sales Ticket Booking system handling bookings for International shares. It covers a variety of markets, from Europe to Japan and Canada. Our Technology ? Java, C#, C, Perl, HTML ? Sybase ? Solaris, Windows NT, Linux
TECHNOLOGY - DIVISIONAL OVERVIEW
GLOSS based system, XML
Product Line Groups The Program Trading Technology team, develops and supports a diverse set of applications to support Sales (Sport), Trade management (Xtreme) and Execution management (Pipeline) for the Program trading, ETF and Transition management businesses. Primary Technologies used are ? C++, Java, Perl, SQL, Unix shell script ? Sybase ? SunOS/Solaris, Windows NT/XP ? Corba, Rendezvous, Bloomberg, Reuters SFC, Triarch, RogueWave Libraries, MS Office Automation The Equity Derivatives Technology team support listed and OTC Options and Futures trading businesses that specialize in concentrated risk and Securitised derivatives (mainly Warrants) trading. The Volatility Trading Group, UK is part of the Global Volatility Trading Technology Group, and is responsible for the development of front-office trading systems, which also include some exchange feeds and links. Our Technology ? C, C++, C#, PERL ? Sybase ? Solaris, Windows XP ? Reuters SSL The Pan Euro Shares (PES) development group is based in London and is organised into the following teams: The Cash Technology team is primarily responsible for the development and support of Equity Share Trading groups systems. This includes managing the support of STORM, trade booking issues and a host of other front office technical issues. GIST is an OMA based system supporting sales trading, especially order flows received electronically. The Convertible Bonds team manages the development and support of the EuroConverts Front Office Sales/Trading Desk systems. Global Securities Services Europe Technology This department is organised into three groups. The Prime Brokerage Technology group supports Prime Brokerage which provides custody, financing, securities lending and reporting to Hedge Fund clients. The client's trade many different asset classes including equities, convertible bonds, asset swaps, options and CFDs in the major international markets. The systems in Prime Brokerage
TECHNOLOGY - DIVISIONAL OVERVIEW include trade booking, client reporting and web-based applications delivered to external clients. The Securities Lending Technolog y group supports Securities Lending from both a trading and operations perspective and operational aspects of Equity Funding. The Securities Lending business lends stock to hedge funds, firm desks and other brokers to facilitate trading strategies
involving short selling. The group in London borrows to cover firm and client shorts in most GS entities across all the major markets, collateralizing the borrows with multiple types of collateral. The business is global in nature - multi-market, multi-entity and multi-currency. The business is run on the Loanstar system, which is a global system developed using an n-tier architecture based on J2EE (EJB/JMS), JAVA and CORBA. Prime Brokerage Technology is organized into the following teams: ? Prism and Internal Risk is responsible for the development and support of the Prism international margin system and other internal risk applications. PRISM is used to determine the financing the Prime Brokerage business will extend to a ? client based on the risk profile of their portfolio. The system is currently used in London, Zurich, Hong Kong, Tokyo and New York. ? Client Services Efficiencies is a team focused on using technology to make our servicing of clients more efficient. This team has made numerous enhancements to existing applications and developed new applications that have increased the number of accounts that a single client service representative can now handle. ? Client Support is responsible for the technology support for existing clients and the technology work necessary to bring new clients on-board. ? Securities Lending Technology is organized into two main teams ? Trading focuses on designing and developing applications which present increasingly analytical information to the traders, both market data and internal analytics and automate their business flows. Applications are developed to support new business opportunities and increase the efficiency and profitability of the desk whilst allowing its risk to be properly managed. ? Operations are responsible for the design and development of applications that bring greater efficiency to operations while increasing control. As the trading business is changing, the operations system needs to adapt to support this. Our Technology ? JAVA, EJB , C++, Visual Basic, Perl, ? CORBA, JMS, Sybase, UDB ? Reuters, Bloomberg ? NT, Solaris, Linux The Clearing Services Technology group supports the newly established Trading and Clearing Services business. This business provides clearance services to predominantly market makers and proprietary trading firms. This business leverages many applications developed in other parts of the Firm, but also has some dedicated applications that are supported by this technology team in London. These applications include LIBRA, our Futures matching and clearing application and GMI for the Back Office processing. Additionally we have client reporting and client billing functions for the cash clearing business.
TECHNOLOGY - DIVISIONAL OVERVIEW The Equities Technology group consists of approximately 200 people and is responsible for supporting
all the activities of the many Equity based businesses in the front, middle and back offices. Many of these businesses operate on both a local and global basis and require members of the Technology team to also act as part of both.
Fixed Income, Currency and Commodities Technology
TECHNOLOGY - DIVISIONAL OVERVIEW responsibilities include trade entry, position/risk management, management tools, and integrations with exchanges and clients. pricing, order
As well as the Trading and Sales desks, the Commodity Trading and Sales System team have responsibilities to the middle and back office functions in Operations, Controllers, Firmwide Risk, Credit and Regulatory aspects of the global franchise. Our Technology: ? Java,
Our Technology: ? ? ? ? C++, Java, C Sybase, Solid/Synchronet, JDBC, SQL Solaris, XP Ghost/ETX, OBJ, RMI, Rendezvous, DF, XML, MX
Fixed Income Securities Trading and Sales Technology focuses on electronic and voice space applications for Securities Traders, Salesforce and Operations. Both the Trading and Sales applications include trade entry, update and history. The Trading applications include position information as well as electronic trading strategies to assist the trader in automatic trading. In the electronic trading arena, we are involved in several external customer and broker channels such as TradeWeb, MTS, E-Speed, BrokerTec and Market Axxess. Our internally developed electronic channels include WebET which is a web based trading application for our customers to use via the Goldman website.
TECHNOLOGY - DIVISIONAL OVERVIEW The team has a high degree of interaction with our user community (Trading, Sales, and Operations), our E-Commerce team, our Research Strategists, our Enterprise Technology teams as well as other applications groups. Projects performed within this group tend to be of a global nature, so there is always interaction with our peers in New York and sometimes Tokyo. Our Technology: ? ? ? ? Sybase, SQL C++, Java, C SunOS, Solaris, XP Ghost/ETX, RMI, Rendezvous
Interest Ra te Sw aps Technology supports the Global Interest Rate Derivatives business. This business includes Trading & Sales desks, Operations and several other business support areas. The trading desk
Cross Product Technology is responsible for the development and support of systems which have been implemented for a number of business product lines across Securities and Derivatives in Fixed Income, Currencies, Commodities and Equities. Systems supported cover middle and back office functions, as well as the firms?? books and records processing for institutional clients, and include Trade Confirmation Automation, Derivatives Processing and Client Reporting, Payments and Settlements. One of the major systems which the core product technology team develops and supports is Client Services Workstation (CSW). CSW is the firms?? strategic institutional client sub-ledger system, which supports derivatives and securities across the firm. CSW
The following is a description of the departments that make up the Goldman Sachs Business Unit known as Firmwide Systems: Cross Divisional Projects & Arc hitecture (XDiv) support significant business change