The Tradetech Daily

Goldman Sachs

Goldman Sachs

Goldman Sachs’ equity algorithms source liquidity from both public and/or non-displayed trading venues. The firm offers its Sonar liquidity-seeking algorithm in the US, Europe and Asia and Sonar Dark in the US only. Goldman Sachs’ smart order router can be customised to take optimal advantage of both displayed and non-displayed venues.


In addition to Goldman Sachs’ own dark pools, GSET algorithms connect to a range of broker-dealer, consortium, independent and market maker-run platforms. Clients may opt out of trading with specific external liquidity destinations. The firm’s biggest considerations are quality of liquidity at the venue, client feedback and market share.

Liquidity interaction

Goldman Sachs’ algorithms search for liquidity across multiple non-displayed venues to find potential matches, and post any residuals across multiple nondisplayed venues. Sonar (but not Sonar Dark) will supplement dark pool liquidity with liquidity from lit venues based on the user’s urgency level. Both algorithms have the ability to source from ‘grey’ liquidity. An execution style parameter is available for users to specify an urgency level on their orders. In addition, a ‘wouldif- good price’ is available.

Anti-gaming logic

The anti-gaming logic for GSET’s dark algorithms reduces exposure if the price moves unfavourably, and applies dynamic price limits to protect against adverse selection. It also gives users the ability to apply a minimum execution quantity, configure an eligible destination list and specify an execution style based on price type, desired destination type and antigaming logic sensitivity.

Service and reporting

GSET alerts provide traders with real-time details about potential order or market irregularities. GSET also provides a post-trade liquidity map report that highlights spread savings and transaction cost analysis metrics by venue.

Future plans

GSET plans to enhance antigaming logic, increase liquidity access and improve order placement intelligence.