Nasdaq to Team Up With Goldman Sachs to Push Dark Pool, Sigma X
- Goldman Sachs will be outsourcing its Sigma X dark pool platform to Nasdaq in a bid to curb regulatory costs.
Nasdaq Inc., the second largest Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term in the world, and Goldman Sachs Group are teaming up to launch a new ‘dark pool’ accord that will see the deployment of Sigma X, according to a Nasdaq statement.
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The joint launch of Sigma X is noteworthy as it represents the first such instance of a bank outsourcing its technology to Nasdaq for the use of dark pool trading. As a result of the deal, Nasdaq will be operating the majority of Sigma X, whereby relying on outsourced back-end technology, which includes compliance and surveillance tools, to its dark pool operator, called ‘Ocean’.
The deal still requires the necessary regulatory approval and has been over a year in the making. By partnering with Nasdaq, Goldman Sachs can also help bring more trading to its system without having to shoulder the costs of compliance, which in recent years has crept up substantially, impacting a wide range of operations for lenders in the US.
Despite outsourcing its technology to Nasdaq, Goldman Sachs will be bearing the regulatory responsibility for the 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 of Sigma X. The nature of the deal itself stems almost entirely from the circumvention and burden or regulatory costs, which both companies are keen to satisfy on their own terms.
US regulatory authorities have made it clear that they are not warm to the idea of Nasdaq operating its own domestic dark pool, which ultimately caused the company to change its plans, settling on a partnership with Goldman Sachs.
Earlier today, Nasdaq made headlines after it launched 'Nasdaq Trading Insights', a product suite designed to help traders better understand their performance in the market, how the market behaves and how they can adjust their strategies accordingly in order to become more successful.
Nasdaq Inc., the second largest Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term in the world, and Goldman Sachs Group are teaming up to launch a new ‘dark pool’ accord that will see the deployment of Sigma X, according to a Nasdaq statement.
Don't miss your last chance to sign up for the FM London Summit. Register here!
The joint launch of Sigma X is noteworthy as it represents the first such instance of a bank outsourcing its technology to Nasdaq for the use of dark pool trading. As a result of the deal, Nasdaq will be operating the majority of Sigma X, whereby relying on outsourced back-end technology, which includes compliance and surveillance tools, to its dark pool operator, called ‘Ocean’.
The deal still requires the necessary regulatory approval and has been over a year in the making. By partnering with Nasdaq, Goldman Sachs can also help bring more trading to its system without having to shoulder the costs of compliance, which in recent years has crept up substantially, impacting a wide range of operations for lenders in the US.
Despite outsourcing its technology to Nasdaq, Goldman Sachs will be bearing the regulatory responsibility for the 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 of Sigma X. The nature of the deal itself stems almost entirely from the circumvention and burden or regulatory costs, which both companies are keen to satisfy on their own terms.
US regulatory authorities have made it clear that they are not warm to the idea of Nasdaq operating its own domestic dark pool, which ultimately caused the company to change its plans, settling on a partnership with Goldman Sachs.
Earlier today, Nasdaq made headlines after it launched 'Nasdaq Trading Insights', a product suite designed to help traders better understand their performance in the market, how the market behaves and how they can adjust their strategies accordingly in order to become more successful.