Goldman Sachs Electronic Trading (GSET) announced today the upcoming release of its latest functionality for its Sigma smart router for clients who trade Canadian and US stocks.
SIGMA inter-listed routing seeks best prices across US and Canadian stock trading venues while taking into account real time foreign exchange rates, allowing for single currency settlement.
"In the past two years the market structure in Canada has changed at a very rapid pace," said Todd Lopez, head of international sales for GSET North America. "With nearly 200 stocks currently inter-listed on the Toronto Stock Exchange (TSX) and US exchanges, traders need to access liquidity seamlessly in both markets while automatically hedging their currency exposure in real time."
SIGMA works by simultaneously scanning multiple trading venues and routing the order to the venue where there is the best opportunity for optimal execution. GSET clients are able to access the SIGMA router for inter-listed trading via REDIPlus®, GSET's proprietary execution management system, or through third-party trading systems. With this new functionality, GSET is offering cross-border smart order routing capabilities for all dually-listed Canadian and US stocks. Clients also benefit from SIGMA by trading via GSET algorithms, which utilize the SIGMA router to make order placement decisions.
The SIGMA router also gives clients access to the diverse, high-quality liquidity found within our SIGMA X non-displayed liquidity pool for US stocks. SIGMA X traded more than 312 million US stocks per day in April, 2009. The SIGMA smart router has been in existence since 2002, when it was designed to address the growing fragmentation across US equity markets. Since its launch, SIGMA has been enhanced to provide optimal routing for trades. It is available for equity trading in the US, Canada, Europe, and Asia, as well as for US listed options.