Goldman Sachs has launched a new tool for options price discovery and trade idea generation, named Visual Structuring, which is available through Goldman Sachs Marquee.
Initially with FX options, the new tool offers a mobile-first approach to speedily price variations, assess scenarios, conduct back-testing analysis and enhance collaboration between colleagues.
“We genuinely believe that Visual Structuring will revolutionise the way that people seek to price, understand and structure FX options. More than that, we believe it could transform the way that people collaborate on options trade ideas or on existing positions,” said Chris Churchman, head of Goldman Sachs Marquee, speaking to The TRADE.
“Instead of spreadsheets, emails and chat, we wanted to build a mobile-first analytics and collaboration platform that revolutionises the way that people think about options.”
The tool looks to improve upon existing processes: which tend to be manual, time consuming, and require significant familiarity with complex tooling.
Instead, the new capability will combine the latest developments in mobile technology, cloud compute and machine learning to provide faster price discovery, detailed scenario analysis and improved collaboration on trades and ideas.
Through the use of natural language inputs, trade variations can be priced immediately using intuitive touch-screen interactions. Users will be able to view each of these variations graphically, with information on how their risks evolve over time as well as context on the probabilities of outcomes or upcoming events.
In addition, users will be able to easily backtest a structure and quick assess how it has previously performed.
“Visual Structuring aims to create a new paradigm in options trade idea generation; a new language of derivatives trading,” said Churchman. “Instead of spreadsheets, emails and chat, we wanted to build a mobile-first analytics and collaboration platform that revolutionises the way that people think about options. We’re starting in FX but aiming to extend this across every asset class.
Visual Structuring can be accessed by institutional clients through the Goldman Sachs Marquee Trader mobile app, provided they have a Goldman Sachs Marquee account.