The TRADE 2018 Algo Survey - Long Only | Page 14

[ 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