Goldman Sachs is set to launch its Sigma-X dark pool equity trading platform in Hong Kong this week, according to the Financial Times.
Sigma-X was launched in the US in 2005 and began operating in Europe the following year and is used by the bank's own trading desks as well as hedge funds, institutions and broker dealers. According to the FT, the platform trades over 300 million shares a day.
Dark pools are estimated to account for around 10% of all equity trading in the US whilst the introduction of MiFID has spurred their growth in Europe.
Although not as prevalent as in the US or Europe, they are becoming increasingly popular in Asia, and in particular Hong Kong. With trading volumes falling across the region, alternative pools are seen as an attractive, and cheaper, way of dealing in large blocks of shares without moving the market too much.
CLSA, Instinet and Investment Technology Group all run platforms in the Hong Kong and Gene Reilly, head of trading and execution, Goldman Sachs Asia, told the FT the firm expects alternative pools to play an important role in the market's development.
Goldman launches dark pool in HK - FT