US investment bank Goldman Sachs has integrated its pre-trade analytics onto the newly merged end-to-end investment management platform, TS Imagine.
TS Imagine and Goldman Sachs have been in partnership for over two decades, with the platform going live with Goldman Sachs’ pre-trade analytics in the first quarter of this year.
The solution offers investment managers access to a network of brokers, banks and exchanges, and was launched through a partnership between formerly separate entities TradingScreen and Imagine Software in August last year.
“Integrating GS stock cluster analytics into the TS Imagine OEMS empowers the buy side to further enhance the decision making in their TS Algo Wheels—in particular, optimising the criteria for eligibility of what is sent to an algo wheel and strategy selection. The clustering data can be overlaid on typical wheel inputs, such as notional and ADV, with data-driven, stock-specific classifications,” said Alex Harman, co-head of EMEA electronic trading at Goldman Sachs.
The expanded partnership with Goldman Sachs makes TS the first vendor to integrate the pre-trade analytics from the investment bank into its trading system, meaning its users can automate more of their equity trading workflow.
Goldman Sachs groups microstructure-based stock characteristics into clusters which are then used to define the tradability of stocks based on volatility, liquidity and complex, non-linear dynamics and means investors can make more informed decisions.
“Detailed, accurate and relevant pre-trade insights have never been more important for equity trading. With the plethora of factors affecting execution dynamics globally, one needs to employ ever-increasing sophistication in disentangling said dynamics and translating them into actionable trading behaviour,” said Michael Steliaros, global head of quantitative execution services at Goldman Sachs. “Our proprietary trading cluster methodology is one such example of how our team can assist in that endeavour.”
Following the launch of their end-to-end investment management platform in August last year, TradingScreen and Imagine Software were merged together by investment firm Francisco Partners earlier this month.
“By making them [the GS cluster classification] available within our blotter and automation tools, we believe it will enrich our OEMS workflow to assist the buy-side trader with complex trading decisions,” said Dan Soudry, European senior account manager at TS Imagine.