In 2013, Goldman Sachs launched SIMON, or the Structured Investment Marketplace and Online Network, to provide a single online platform for financial advisors to access structured products.
In December 2018, Goldman sold its majority equity ownership in SIMON to a group of investors and, importantly, structured product issuers including Barclays, Credit Suisse’s NEXT Investors, HSBC, JPMorgan, Prudential and Wells Fargo; Goldman retains a minority stake in the company.
The benefit of the transaction, says former Goldman Sachs executive and now SIMON Markets LLC CEO, Jason Broder, is that there is now an industry-wide “single solution for structured products” for any Series 7-licensed advisor. Broder, formerly head of Goldman’s private investor products group, says the platform offers a broader range of products from multiple issuers than was offered on the original SIMON platform, where the majority of structured products were from Goldman.
While Broder says SIMON now offers structured products, beginning in the second quarter of 2019 it will expand its risk-managed offerings to annuities, starting with fixed indexed annuities, and said the company is exploring adding structured annuities to the platform.
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Available through its website or as an API, SIMON provides educational, performance analysis and “the whole lifecycle of a trade,” from pre-trade education and analytics, to the actual trade and then post-trade performance analysis and lifecycle management which Broder said didn’t exist for FAs pre-SIMON.