Goldman Sachs Electronic Trading (GSET) is upgrading its SIGMA smart router to allow clients to seek the best price for dual-listed stocks across US and Canadian stock trading venues, while using real-time FX rates for single currency settlement.
“In the past two years the market structure in Canada has changed at a very rapid pace,” said Todd Lopez, head of international sales for GSET North America. “With nearly 200 stocks currently inter-listed on the Toronto Stock Exchange (TSX) and US exchanges, traders need to access liquidity seamlessly in both markets while automatically hedging their currency exposure in real time.”
In Canada, the SIGMA smart router directs orders to TSX, Chi-X, Omega, Pure, Alpha, and MATCH Now as well as offering DMA access to TSX Venture. It also routes to all public destinations in the US, plus a number of non-displayed venues.
According to Goldman Sachs, SIGMA simultaneously scans multiple trading venues and routes orders to the venue with the “best opportunity for optimal execution”. Clients can access the SIGMA router for dual-listed trading via REDIPlus, GSET’s proprietary execution management system, or through third-party systems. The SIGMA router, which has been used to handle liquidity fragmentation across multiple venues in the US since 2002, also gives clients access to Goldman’s SIGMA X non-displayed liquidity pool and – since May 2008 – the US dark pools of UBS and Morgan Stanley.