[ A L G O R I T H M I C
T R A D I N G
S U R V E Y ]
Goldman Sachs
G
algos, long-only respondents highlighted desired func-
oldman Sachs has made significant investments
tionality to be introduced including algos that vary the
into its technology capabilities in recent years
venues they access based on the completion percent-
as it seeks to move away from its traditional bank-
age of the order, detailed transaction cost analysis, a
ing legacy and the trend of gradual improvement is
mid-touch service and algos for FX portfolios.
evident in the responses from its long-only clients in
In terms of scoring, Goldman Sachs achieved re-
this year’s survey. Building on a strong showing in the
2017 algo survey, Goldman Sachs drew 3.47% of overall spectable results across all 14 performance categories
in this year’s survey, with incremental improvements
long-only respondents this year, more than doubling
in areas such as trader productivity, reducing market
its percentage year-on-year.
impact and dark pool access. The firm scored highly
These respondents were almost exclusively from
in customer support and execution consulting, with
large clients, with only a handful representing firms
with under $10 billion in AuM, and just under half said year-on-year increases of 0.65 and 0.94 respectively,
largely in line with the overall trends of the survey.
their usage had increased
over
the past year, while the
Goldman
Sachs
The only areas where Goldman Sachs recorded a de-
rest said usage stayed the same. Only three
of
Goldman
Improve
Reduce
ecution
cline in scores Ex
were
for customisation and anonymity,
Sachs’ respondents use additional algorithms and
Year
Cost
Speed
trader
although
declines were only around 0.1 in both
around one-third are considering adding
additional market
impact these
consistency
productivity
categories.
providers in future. When reviewing Goldman Sachs’
2018
5.59
5.58
GOLDMAN SACHS RATINGS FOR 2017
ALGORITHM PERFORMANCE
5.53
5.49
5.85
5.31
5.54
5.35
Improve trader
productivity
2018
5.70
2017
5.45
5.59
5.58
5.53
5.49
Reduce market impact
Execution consistency
5.85
5.31
5.54
5.35
Cost
Speed
5.45
5.70
5.59
5.71
Anonymity
Price improvement
5.23
5.52
5.24
5.35
Customisation
Ease of use
5.94
5.31
5.51
5.37
Crossing
Customer support
6.26
5.61
Execution consulting
6.02
5.07
5.40
5.31
Dark pool access
Smart order routing
capabilities
5.33
0.00
86 // TheTrade // Spring 2018
1.0 0
2.00
3.00
4.0 0
5.00
5.59
6.0 0
7.00