[ 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
Goldman Sachs saw a marked increase in the number of hedge fund respondents in this year’ s survey, with just under half of respondents managing more than $ 50 billion of assets, while there was an even spread of hedge funds from other AuM brackets accounting for the rest of the bank’ s respondents. Just over one-third of hedge funds respondents for Goldman Sachs traded listed derivatives and fixed income via algos. Over half of respondents recorded increased usage of the bank’ s algos year-on-year, while the rest said their usage had remained consistent over the period, and one-third of respondents said they are considering adopting algos from other providers. Bloomberg EMSX was the popular choice for execution management for Goldman Sachs respondents, while Eze Software, ITG and Portware were also mentioned.
Building on its solid showing in last year’ s hedge fund algo survey, Goldman Sachs outperformed the survey average in nine of the 14 categories on review this year. The bank saw increased year-on-year scores in the reducing market impact, execution consistency, speed, price improvement, customer support, execution consulting and smart order routing capability categories. A score of 6.17 in the customer support category was the highest achieved by Goldman Sachs in this year’ s survey, while the bank was most improved in the execution consulting category, which increased 0.71 year-on-year. The most significant decline in scoring for the bank was for its customisation capabilities, which dropped to a score of 4.97.
RATINGS FOR ALGORITHM PERFORMANCE 2018 2017
Improve trader productivity
Reduce market impact
Execution consistency
Cost
Speed
Anonymity
Price improvement
Customisation
Ease of use
Crossing
Customer support
Execution consulting
Dark pool access
Smart order routing capabilities
5.52
5.85 5.76
5.22 5.95
5.52
5.37
5.90
5.59 5.50
5.66
5.88
5.49 5.44
4.98
5.73 5.73
5.85
5.39 5.60
6.18 5.72
5.91
5.20
5.38 5.56
5.50 5.38
0.00 1.0 0 2.00 3.00 4.0 0 5.00 6.0 0 7.00
86 // TheTrade // Summer 2018