Bulge-bracket broker Goldman Sachs has expanded its global equities crossing network, SIGMA X, to trade stocks listed on the Hong Kong Stock Exchange.
SIGMA X Hong Kong is accessible through Goldman Sachs’ REDIPlus execution management system, third-party trading systems or any system supported by the FIX Protocol. Hong Kong is the second Asian market to be added to SIGMA X. The crossing network was already available in Japan.
“The growth potential of Hong Kong’s market remains significant and we think alternative pools of liquidity will play an important role in its development going forward,” said Gene Reilly, managing director and head of trading and execution for Goldman Sachs in Asia.
“SIGMA X requires no technology build on the part of the customer, regardless of which system they use,” added Shuya Kekke, managing director and head of Goldman Sachs Electronic Trading, Asia. “Customers benefit from the potential price improvement gained by executing orders at prices inside the primary exchanges’ best bid/offer. SIGMA X is completely anonymous, serving investor requirements that indications of interest are not published internally or externally.”
According to research firm TABB Group, SIGMA X is the largest non-displayed liquidity pool in the US by volume traded daily. The pool is comprised of flow from a number of market participants, including hedge funds, institutions, broker-dealers and Goldman Sachs’ own internal flow.