As Wall Street traders continue to expand their use of
algorithms, bulge-bracket firms have been flexing their muscles to
remain a major force as providers and promoters of these models and
related tools. These brokerages account for 65 percent of
algorithmic trading volume, according to research firm Aite Group,
and a handful of well-funded and savvy leaders in the bulge-bracket
camp have emerged, including Goldman Sachs Group.
In a report titled "Bulge Bracket Firms & Algorithmic
Trading: The Big Get Bigger," published by Aite in November 2006,
Goldman Sachs is cited as a leader among sell-side algo providers,
boasting upward of 2,000 clients, ahead of Credit Suisse's 1,200
client base and Morgan Stanley's tally of 1,000. |
