Goldman Sachs Electronic Trading (GSET)

Strategies

GSET strategies include 1CLICK, Sonar, Sonar Dark,
SpreadTrader, Stealth, SmallCap, implementation shortfall, Port X, VWAP, TWAP,
Participate, Scaling and Navigator.

Key functionality

Price and liquidity seeking algorithms are designed
to access liquidity in public and dark venues (or dark only) based on price
while minimising information leakage.

Benchmark matching
algorithms trade on a schedule over a specified time period, tracking a
benchmark while attempting to minimise both market risk and impact risk.
Participation based algorithms track a certain percentage of composite market
volume while ignoring outsized prints.

Customised algorithms leverage historical execution
quality to select the most appropriate strategy based on order and security
characteristics.

Support

GSET offers
trading and execution insights to help clients achieve trading and execution
goals and offers pre-, intra- and post-trade analytics.

A team provides tailored execution consulting and reports
to help clients improve trading results, in addition to regular trading-focused
pieces that shed light on the constantly changing market landscape and how it
may affect clients’ trading decisions. Customisations include tailoring
existing algo and routing strategies to meet clients’ specific execution needs.

Access

Clients can
access GSET algorithms via FIX or from most major order and execution
management systems.

Routing

The GSET smart
order router routes orders based on size and type, terms and market conditions,
trading characteristics of the security, accessibility of quotations,
transaction costs, opportunity for price or size improvement, speed of
execution, availability of efficient and reliable order handling systems, venue
characteristics, and the customer’s overall objectives. GSET regularly reviews
transactions for quality of execution.

GSET is connected to most major venues including its own
SIGMA X dark pool.

Future plans

GSET uses a scientific approach to algorithmic
trading and focuses on execution quality.