Open Source Investment Bank? Goldman Sachs Opens Up Prop Trading Systems

In a bid to strengthen its relationships with buy-side clients, Goldman Sachs is opening up proprietary trading strategies and financial databases to customers. The strategy was revealed in a report from the Wall Street Journal, of which Goldman Sachs CIO, R. Martin Chavez, explained that the investment bank is taking a page from Silicon Valley as they have decided to apply an open approach.

Until now, Goldman Sachs has used its proprietary technology and strategies as a value added service provided to its buy-side customers, such as asset managers, hedge funds, and fund managers to entice them to trade with the investment bank. Examples include trading on behalf of their customers to execute large trades, of which Goldman’s strategies are used detect ideal order entry times to maximize Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term quality.

By opening up portions of their proprietary systems, customers will theoretically be able to conduct their own analysis and trade with the broker of their choice. However, Goldman Sachs is making a bet that by opening up its strategies and market data it will strengthen its relationship with customers, and increase their overall business with the firm.

Among the initial apps being made available to clients are tools for its Marquee Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term. The apps include SIMON and Strategy Studio. SIMON is a solution targeted at smaller brokers with the ability to create and analyze equity linked derivatives for retail customers. Strategy Studio is a quantitative trading tool to assist money managers to create investments out of their economic views. The two apps follow the release by Goldman Sachs of a Marquee app to handle block trades.

In addition to the apps, customers will be watching to see how much of Goldman’s data base, named SecDB, will be made public. Considered one of the best in Wall Street, according to Goldman Sachs, SecDB is able to calculate 23 billion prices for 2.8 million positions and 500,000 market scenarios. For customers, availability of accessing the database would provide important research for their own analysis of finding trading ideas.