Goldman Sachs to launch new Block Signal service

So is it an indication of interest or isn't it? Goldman Sachs is planning to add a service to its automated execution management system that allows customers with block orders to communicate their interest to other Goldman customers, reports Trading Magazine. But it's not calling its Block Signals service an 'indication of interest,' which have proven so controversial in the dark pool universe. Goldman Sachs alerts will be sent solely within the REDIPlus/Sigma X community.

Also, Block Signals will be sent to humans, not to other pools. Still, there's a real chance that some hedge funds or institutions may try to game the system in ways similar to the gaming that goes with indications of interest. That is, some may try to use signal to get an feel for the market, without really intending to trade. Goldman Sachs says it will be monitoring for abuse.

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