[ 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 attracted the highest number of hedge fund responses( 54) in this year’ s survey and records an overall average score of 5.69, a moderate increase of three basis points compared to 2025. Strong upticks were achieved in core capabilities such as anonymity(+ 0.43) and increase trader productivity(+ 0.41) as well as reduced market impact and execution consulting( both + 0.20). Overall, year-on-year gains were secured across eight out of 15 categories under review.
When compared against the survey benchmarks, Goldman Sachs land 34 basis points below the survey average of 6.03. On a category level, GSET beats the average for increase trader productivity by 4 basis points, achieving category outperformer status, however key service areas such as customisation features and customer service( both-0.55) were outpaced by the benchmark, as was cost(-0.47). The most commonly used algo performance measurement metrics were VWAP TCA( 53.7 %) followed closely by liquidity capture( 44.4 %) and IS TCA( 42.6 %).
Large firms with over $ 10 billion in assets under management make up close to 30 % of responding clients this year, however mid-size firms with $ 1 to $ 10 billion in AUM formed the largest cohort at over 35 %. Traders were based mainly in the UK( 37 %), North America( 28 %) and APAC( 20 %), with the remainder split between continental Europe( 11 %) and the Middle East( 4 %). Lastly 14.8 % of clients said they expect to make use of additional providers in the next 12 months, in line with the overall hedge fund average of 15.1 %.
Sample feedback from respondents included the following:
• Demand for private rooms and trajectory crossing
• Would like to see smart algos that include the auctions
• Calls for better block finding in dark venues and higher off market crossing such as SIs
• Demand for electronic liquidity provider access
GOLDMAN SACHS RATINGS FOR ALGORITHMIC PERFORMANCE
Increase trader productivity |
Reduce market impact |
Execution consistency |
Cost Speed Anonymity |
Price improvement |
Customisation |
Ease of use |
6.16 5.83 5.71 5.69 5.89 6.04 5.45 5.32 5.74
Order routing logic / analysis |
Customer support |
Execution consulting |
Dark pool access |
Flexibility / sophistication of SOR |
Algo monitoring |
Average score |
5.55 5.62 5.68 5.68 5.71 5.34 5.69
KEY STATS Category Outperformer: X1
6.16 Highest score( Increase trader productivity) |
5.32
Lowest score( Customisation)
|
0.43
Most improved( Anonymity)
|
-0.27 Least improved( Price improvement) |
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Issue 88 // thetradenews. com // 73 |