Goldman Sachs (GS) Electronic Trading has a dedicated team based in Asia focusing on performance and fine-tuning of the firm’s execution platform and execution analysis. In conjunction with its clients, this team helps drive the future offerings of GS execution algorithms.
GS will continue to invest in its execution
platform and is rolling out its latest algorithms across the region. The firm
has a focus on liquidity in the region and is launching its Sigma X dark pool
in Hong Kong.
GS believes that for a given order size, the choice
of execution strategy will typically encompass the trader’s view of the market,
so the firm’s most innovative customisations let clients express multiple concurrent
and potentially conflicting views when executing.
The customisation is then responsible for collecting and
analysing evidence that supports each view’s underlying assumptions and
automatically chooses the best options for the situation at hand. This involves
in-depth analysis of the appropriateness of different execution styles, algos
and parameters for different order characteristics and market conditions.
Recently the firm has noted an increased focus on algos that
target composite objectives and are able to handle market changes, such as
liquidity profile shifts, trends and dislocations, instead of the traditional
single benchmarks such as implementation shortfall or volume weighted average