What is most interesting about this news is the SIGMA - X
Goldman plans to expand its global electronic trading system with the launch of SIGMA-X Canada, a so-called alternative trading system the investment bank says will provide “a broad source of Canadian equity liquidity” to potential customers.
SIGMA-X Canada is what’s known as a dark pool, a market where participants are permitted to trade anonymously.
See any cause for concern there?
Such markets have major appeal for large institutions and algorithmic traders who like to keep their trading strategies under wraps so they don’t have an impact on price before a transaction is completed
Appeal for large institutions? Algorithmic traders? Who like to keep their trading strategies under wraps? Can you say underhanded? Sneaky? Corrupt?
Brief Digression: Some additional reading on Algorithmic trading or High Frequency Trading has been hitting the headlines more and more over recent months. Why? Because it involves huge sums of money and more than a little intrigue.
Guess who was behind the intrigue mentioned in the article above?
Goldman-Sachs, off course.
High Frequency trading was also fingered in the flash crash of May/2010 -Which temporarily erased 862 billion in value from the stock market. And coincidentally or not caused Congress to change their mind about auditing the Fed.
Covered that here: Stock Market Free Fall causes Senate epiphany on Auditing the Fed
Don't worry the SEC "found no evidence the sell off was triggered by manipulation"
Which is of course utter hogwash. Or excrement from a bull! Take your pick.
Back to the originating article-
The smell of market manipulation permeates this SIGMA-X trading system and this new market in Canada
Canadian regulators recently completed a review of dark pools, and late last month issued a issued a framework of expectations to guide participants in the fledgling domestic market.
“The growth potential of the Canadian equity market is significant,” said Todd Lopez, a senior executive at Goldman Sachs Electronic Trading, in a statement Thursday. “We believe unique, alternative pools of liquidity will continue to play an important role in the Canadian market’s development.”
Goldman operates similar SIGMA-X trading systems in the United States, Europe and Asia.