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“ I don ’ t think I ’ ve ever seen an opportunity as good as this for running an execution platform .”
DANIEL MALLINSON , MD , HEAD OF EMEA EXECUTION SERVICES , GOLDMAN SACHS
algorithms to educate on how best to trade a stock . That data can now be fed through an application programming interface ( API ), meaning that clients using tools such as algo wheels can plug the data directly into their own system .
Data that fed algo wheels when they were first developed was fairly basic – mainly ADV , notional or a static list of securities . Clients are now incorporating the Goldman Sachs clustering data into their platforms to enhance decision making for what should or should not be in an algo wheel , or which execution style to use .
This has been available to Goldman ’ s clients in Asia for three years and those based in Europe for around 18 months . Take up of that data service has been enormous over the past year , Harman Harman explains . In the past 12 months , more than 60 institutional and hedge fund clients are now utilising the API for their algo wheel decision making .
“ All of the investment , and this underpins everything , is forward-looking ,” Mallinson says . “ It ’ s not designed to be a bandaid solution to a problem that we might not need next week . It has all been designed to accommodate what our clients are genuinely going to need in the coming years . That has been a key part of GSET ’ s market share win . The forward-looking view is focused in a way that when the market structure does evolve , our product
40 // TheTRADE // Fall 2020