Goldman Sachs Electronic Trading has introduced a new spread trading application, REDI MAST, for futures and US treasury bonds. The new addition allows customisable spread creation and trading on REDIPlus, the firm's multi-asset class execution management system.
The application's strategies include basis trades, curve trades, ”butterflies' and ratio spreads tailored specifically to commodity and financial futures. A ”butterfly' strategy is a limited profit, limited risk options strategy that enables an investor to speculate on the shape of the interest rate curve, with the aim of capturing a specific spread when interest rates move.
REDI MAST has risk and order controls that enable users to customise the behaviour of the spread depending on their appetite.
Users based in the US and Europe can access multiple futures exchanges across regions, including the Chicago Mercantile Exchange, IntercontinentalExchange, Eurex and NYSE Liffe.
“REDI MAST is our enhanced inter-product spread trading tool that enables our clients to trade futures and fixed income products more efficiently,” said Jack McCabe, managing director, co-head of futures and electronic trading, Goldman Sachs. “It is built with the functionality needed to manage spread trades across regions and asset classes, while mitigating risk and market impact.”
Clients can use FIX connectivity to integrate REDI MAST executions with their internal order management systems, to improve operational processing. All futures product classes are supported by REDI MAST.
Goldman Sachs also recently introduced BlockStrike, a trading strategy designed to provide clients with the ability to simultaneously search for block liquidity in non-displayed liquidity pools while working an order using an algorithm's existing logic, in February 2011.