The Tradetech Daily

Goldman Sachs Electronic Trading

Goldman Sachs Electronic Trading (GSET)

Goldman Sachs Electronic TradingEmail:

GSET''s SOR has access to liquidity within the firm''s SIGMA crossing network in Europe and SIGMA X platform in the US and Asia. Best execution takes first priority in determining where or when to place an electronic order.

Access and algorithmicintegration

Clients can access the GSET

SOR via the firm”s algorithms

and all major order and

execution management

systems, including Goldman

Sachs” REDIPlus.


GSET”s SOR is available in

North America, Europe and

Asia. The SOR accesses all

major public exchanges and a

variety of other displayed and

non-displayed trading

venues. GSET”s biggest

considerations when adding a

venue to its SOR are client

feedback, the destination”s

existing market share, and

any innovations unique to

the destination. The SOR

logic is adapted differently

for various regions to account

for differences in market


Order types and clientreporting

The SOR offers market

orders, limit orders, and

iceberg orders in all regions.

GSET supplies post-trade

execution reports and

liquidity maps to clients to

demonstrate the execution


Data feeds

The SOR leverages real-time

and inbound market data. In

Europe, the SOR uses GSET”s

consolidated feed whereas in

the US, a proprietary feed

that combines exchange feeds

and a consolidated feed is


Routing logic

The SOR seeks to maximise

the fill rate in the shortest

possible time at favourable

prices in line with the client”s

intentions. The first criteria is

quoted price. When there are

multiple destinations at the

best bid and offer, a number

of factors are used, including

quoted size, queue length and

venue efficacy measures.

Prioritising venues is

based on historical

information that shows best

chance of fill with

re-balancing/allocating based

on recent fills.

The GSET SOR order

placement logic leverages

both real-time execution

information as well as

historical analysis to

determine which venues to

place orders to. Clients can

work with GSET to customise

the SOR routing logic. GSET

has a dedicated team that

works closely with the

trading desk in order to

develop the SOR.

Automated morning test

baskets are sent to ensure

orders are routed correctly,

and real-time monitoring is

used to prevent capacity and

SOR crash issues.

Future plans

Upcoming improvements

include faster market data,

increased use of intermarket

sweep orders, continued

enhancements to micro-order

placement and the addition

of new venues.