Goldman Sachs Launches Liquidity Seeking Algorithm

Goldman Sachs announced the launch of Sonar Dark X, the newest algorithm on its Atlas equities trading platform. It is the first liquidity seeking algorithm powered by Atlas and is designed to maximize non-displayed liquidity capture and minimize price impact. Sonar Dark X leverages Goldman Sachs’ liquidity scoring framework for non-displayed liquidity, including scoring for distinct ATS liquidity segments, to help clients navigate the fragmented landscape. It is the newest algorithm on Atlas, Goldman Sachs’ equities trading platform that was introduced in 2019 as a result of a multi-year investment to evolve the firm’s global trading infrastructure, providing lower latency, higher capacity, and increased agility for product innovation. The new algorithm also uses Goldman Sachs’ Liquidity Shield logic, which is designed to reduce parent order information leakage while seeking invisible liquidity, by balancing the liquidity quality and capture objectives throughout the life of the order by dynamically adjusting among distinct combinations of venue segments, minimum execution quantities and spread allowances. The new Sonar Dark X algorithm, which has been deployed in the U.S. and is expected to rollout in EMEA later this year.