Algos are a growing part of Goldman Sachs’ overall FX business with volumes having increased by some 30% year on year. The philosophy has always been to have a manageable group of FX algo strategies, which include a flagship dynamic hybrid algo, a pegged algo that does passive posting, a dynamic aggressive for a sweep-to-fill capability, as well as the standard TWAP and VWAP.
The bank has recently launched an analytics tool offered on its platform Marquee Trader, which is designed as a real-time order monitor for FX orders.
Clients using vendor platforms are often “flying blind” when using an algo, explained Ralf Donner, executive director and global head of FX Client Algo Execution at Goldman Sachs. “They typically do not have an instrument panel in front of them by which to figure out exact details of live performance of the order execution,” he said. “And while pre- and post-trade tools are ubiquitous in the market, the space in which our real-time order monitor launched in late April is wide open.It will allow clients to visualize execution intra-trade and make tweaks to it, and adjustments as they see the performance,” Donner said.
“Without an intuitive intra-trade tool, clients are likely to be in the dark during the actual execution, especially about live liquidity conditions and even performance relative to their benchmark. We intend to change all that,” says Donner.