Goldman Sachs will launch a new private stock-trading venue today, revamping its existing ‘dark pool’, known as Sigma X.
Editor’s Remarks: Sigma X2 has been in the works ever since Goldman brought Nasdaq in last year, hoping to overhaul the first version. It will be introduced in phases, with two stock symbols trading today and the rest migrated over the next month. Dark pools – which differ from traditional trading venues in that they have no obligations to release information such as trade sizes or prices before trades take place – are popular for their benefit of carrying out large orders with as little price movement as possible. Almost every major bank has one. Goldman will be hoping to give Sigma an X factor as competition in electronic stock execution grows – something it has a good shot at given that it will be the only dark pool to offer Nasdaq’s level of technology and compliance monitoring.
What to Watch: Sigma X2, Goldman Sachs, Nasdaq, JPMX, Instinct-X, MSPOOL, Citi Match