The best technology on the Street

So which broker dealer has the best technology? Goldman Sachs may be the most common answer, and it would be hard to argue right now. Bloomberg notes using data from Ancerno that the firm ranks No. 1 for the best agency prices for the year ending June 30, 2009. Among big brokers--those who handle at least $25 billion in trades--its average price was closest to the stock level when the order was received. It took the top honor in Asia, Europe and North America.

This is something of a recent phenomenon. Last year, JPMorgan got the best prices for institutional clients. Goldman Sachs didn't even rank in the top five. But the gilded firm has been able to invest massively in its systems, which features speed and cross-desk coordination as much as anything. Of course you cannot discount the value of Goldman's deep pool of internalized liquidity, exemplified well by its Sigma X dark pool.

All in all, the firm seems to have found the right synergy between its systems and its liquidity. But with execution times dropping even more, this will require constant improvement. And the bank has the enviable position of being able to invest as necessary. 

For more:
- here's the Bloomberg article

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