The integration means investment managers can automate more of their equity trading workflow thanks to Goldman’s pre-trade quant analytics. Goldman’s Quantitative Execution Services team classifies microstructure-based stock characteristics into “clusters”, which define the precise nature of tradability of stocks based on volatility, liquidity, and complex, non-linear dynamics.
By categorising stocks in this way, investment firms can make highly informed decisions about how they are going to trade – including driving the optimal order routing options for order execution right down to selecting the best algo available on TS Imagine’s Algo Wheel.
Commenting on the integration, Michael Steliaros, Global Head of Quantitative Execution Services at Goldman Sachs said: “Detailed, accurate and relevant pre-trade insights have never been more important for equity trading. With the plethora of factors affecting execution dynamics globally, one needs to employ ever-increasing sophistication in disentangling said dynamics and translating them into actionable trading behaviour. Our proprietary trading cluster methodology is one such example of how our team can assist in that endeavour. The continued collaboration with TS Imagine helps deliver our market-leading analytics to buy-side firms, seamlessly integrated into their front-end, enabling access to the most relevant information required to best serve their clients.”
“Integrating GS stock cluster analytics into the TS Imagine OEMS empowers the buy-side to further enhance the decision making in their TS Algo Wheels—in particular, optimising the criteria for eligibility of what is sent to an algo wheel and strategy selection. The clustering data can be overlaid on typical wheel inputs, such as notional and ADV, with data-driven, stock-specific classifications,” added Alex Harman, Co-Head of EMEA Electronic Trading at Goldman Sachs.
Dan Soudry, European Senior Account Manager at TS Imagine, concluded: "We are very pleased to integrate the GS cluster classification into the existing pre-trade analytics suite of TS Imagine’s OEMS. By making them available within our blotter and automation tools, we believe it will enrich our OEMS workflow to assist the buy-side trader with complex trading decisions."
Following a longstanding partnership spanning over two decades, TS Imagine went live with Goldman’s pre-trade analytics in Q1 of this year.
Operating in the cloud for nearly two decades, TS is a leading expert on SaaS trading technology. TradeSmart OEMS offers workflow efficiency and seamless integration between the sell-side and buy-side, connecting markets globally and providing traders the access and information they need to optimize their trading performance. www.tradingscreen.com
About Imagine Software:
Imagine offers the power of a real-time, institutional-grade portfolio and risk management software solution and provides clients the choice of full-service on-line accessibility with real-time pricing, security master, corporate actions, derived market data, and 24/7 connectivity or a traditional in-house software installation. www.imaginesoftware.com
About Goldman Sachs
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.