The Tradetech Daily

Goldman Sachs SIGMA X

Goldman Sachs SIGMA X

Goldman Sachs’ SIGMA X is currently available in Japan and Australia. SIGMA X offers increased liquidity access via both customer-to-customer crossing and Goldman Sachs franchise liquidity.

Approximately 100 clients are able to access SIGMA X in Japan and Australia. The average crossing ratio is around 20% with a 7 bps spread saving. In Australia, all trades in SIGMA X are executed at the mid.

Functionality and order types

The matching process for SIGMA X is anonymous and
pre-trade information is not disseminated internally or externally.

Buy orders, sell orders, and short sell orders are all
permitted. SIGMA X matches orders on price and time priority. In Australia,
SIGMA X is accessible via the suite of algorithms and orders are matched at
midpoint on a price and time priority basis.

Access and participation

Clients can choose to opt-in and opt-out their
order from matching in SIGMA X. Access is available via the algorithm suite and
direct posting. In Australia, SIGMA X allows posting via the Sonar dark

Instruments traded

The pool supports trading of cash equities single
stock orders. In Japan, SIGMA X also supports futures orders.

Order protection

Anti-gaming logic is embedded into the algorithm
suite as well as SIGMA X and considers many factors including short-term price
fluctuations and ensuring executions are within the best bid and offer. Goldman
Sachs coverage personnel regularly monitor execution performance to enhance
performance and maintain quality control.

Connectivity/sharing agreements

Goldman Sachs currently has arrangements with
selective broker partners for liquidity sharing in the US.

Future developments

SIGMA X will soon be available in Hong Kong.