Goldman Sachs Expands Algo Suite in Brazil

Goldman Sachs said it expanded its suite of algorithms for electronic trading in Brazil, as a part of a “firm-wide focus’’ on the South America market.

Institutional interest “in Brazilian markets and the appetite for sophisticated trading tools has increased rapidly in recent years,” said Todd Lopez, managing director and co-head of Americas Sales for Goldman Sachs Electronic Trading. “With the addition of more opportunistic liquidity-seeking algorithms, we are helping our clients in Brazil get the execution quality they expect from Goldman Sachs.”

The company said it is “tailoring the algorithmic offering to the intricacies of the unique Brazilian market structure.’’

This includes Sonar, its flagship algorithm for seeking buy and sell orders while “mitigating adverse selection.”Additional algorithms available to Brazil clients include Scaling, which tracks a dynamic percentage of composite market volume based on changes in stock price, and GSET 1Clickm which provides a single point of access to a range of GSET strategies, the company said.

With the addition of these algorithms, GSET now offers a full suite of algorithms in Brazil, including VWAP, TWAP, Participate and Custom Navigator, which aim to reduce market impact, maximize execution quality and improve trading performance based on the specifics of each market.

GSET’s algorithms in Brazil are offered through its affiliate broker, Goldman Sachs Do Brasil Corretora De Titulos E Valores Mobiliarios S/A.

Institutions access Goldman’s products via REDIPlus, its execution management system, or via Financial Information Exchange messages.

Goldman Sachs Group is preparing to spin off its electronic trading software group, multiple news sites reported early last month.

The business, called REDI Technologies, has moved out of Goldman Sachs’ headquarters in New York City, in preparation for the move, a Wall Street Journal report indicated. 

Tom Steinert-Threlkeld writes for Securities Technology Monitor.