Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS) and UBS (NYSE:UBS) today announced a series of bi-lateral agreements that will allow each firm to offer their respective clients access to each other’s pool of non-displayed liquidity. These arrangements allow algorithmic trading orders of each firm to interact with the U.S. equity liquidity found in three of the largest broker-dealer operated “dark” liquidity pools in the U.S. – Goldman Sachs' SIGMA X, Morgan Stanley's MS POOL and UBS’ PIN ATS.
Through this initiative, the firms seek to address the growing complexity of market fragmentation across various non-displayed liquidity venues.
“We’re confident that providing our respective clients access to each other’s liquidity will achieve even better crossing results for our clients in an increasingly fragmented market,” said Greg Tusar, Managing Director, Goldman Sachs Electronic Trading.
"We value our clients’ confidence in us to provide them with additional liquidity with no information leakage in the handling of their orders,” said Andrew Silverman, Managing Director, Morgan Stanley Electronic Trading. “These arrangements will enable us to work with trusted industry participants to deliver the same level of confidentiality our clients have come to expect from us."
Will Sterling, Managing Director, UBS Electronic Trading, said: “Our clients are looking for incremental liquidity without having to split each order across many different algorithms. These agreements should offer clients access to additional high quality liquidity without making their trading process more complex.”
About Goldman Sachs
Goldman Sachs Electronic Trading, a part of Goldman Sachs Execution & Clearing, L.P., provides clients with the necessary execution tools and services to manage the investment process from start to finish, from pre-trade analysis to post-trade consulting. Clients access our global offering via REDIPlus and FIX, available for trading global equities, options, futures, foreign exchange and swaps. Customers can seek liquidity using our suite of multi-asset algorithms, route to optimal destinations using SIMGA router and take advantage of one of the largest U.S. crossing network, SIGMA X. For more information, visit www.gs.com/electronictrading.
About Morgan Stanley
Morgan Stanley Electronic Trading (MSET) is a leading provider of electronic trading products and solutions, delivering a comprehensive spectrum of tools, from pre-trade analytics to execution and post-trade execution performance analysis. MSET is part of Morgan Stanley’s Institutional Securities Group, and clients can therefore have access to Morgan Stanley’s full range of services. Access to MSET products is available through Passport, our fully integrated front-end system, through FIX, and through a client’s proprietary trading system. MSET clients can trade global equities, futures, options, swaps and foreign exchange - all from one platform, as well as utilize an MSET representative designated to know a particular client’s account and provide execution assistance. For more information, visit www.morganstanley.com/mset.
UBS Direct Execution is the firm’s global electronic equities trading business. Our Algorithmic Trading strategies include liquidity-seeking, price-sensitive, and time-sensitive algorithms. UBS also offers Direct Market Access (DMA), providing access to the world’s markets; UBS Pinpoint – a sophisticated desktop trading system; and a comprehensive array of trading and analytical tools. For more information, visit www.ubs.com.
Goldman Sachs, Ed Canaday, 212.357.0005
Morgan Stanley, Mary Claire Delaney, 212.762.6880
UBS, Kelly Smith, 212.882.5699