Goldman Sachs has recently upgraded its artificial intelligence-powered tool that simplifies derivatives trading for its clients. Chris Churchman, the head of the firm’s risk management and trading platform, Marquee, explains how this tool makes the tricky world of derivatives easier for both novice and experienced traders.
Visual Structuring offers a more immediate way to understand how an idea about the markets could be turned into an effective option trading strategy. Compared to the traditional process which is done manually in Excel sheets and requires complex calculations, Visual Structuring gives traders an interactive dashboard to make adjustments in almost real-time. Results can also be shared conveniently regardless of the operating system being used.
Initially launched in September of 2022 and covering foreign exchange options, Visual Structuring has now expanded its scope to equities, cryptocurrencies and precious metals. Beyond that, the banking giant aims to make this a cross-asset derivatives platform, eventually covering credit and rate products.
The advanced technology behind Visual Structuring comprises natural-language processing and cloud-based calculation. This allows users to find better trades faster, reducing the time spent on each trade by two hours, according to the clients. In addition, the tool has been found to be useful for explaining derivatives to non-experts and for having risk committees look into potential trades more easily. With the tool, Goldman Sachs hopes to increase both the frequency and the volume of transactions for the institution.
Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base. Founded in 1869, the firm is headquartered in New York and operates in approximately 5,000 locations in over 150 countries.
Chris Churchman is the Head of Marquee at Goldman Sachs. He brings over two decades of experience in the financial industry, having worked at UBS, Credit Suisse and Goldman Sachs. He has vast expertise in digital product design, structuring, and analytics, along with derivatives trading and risk management. His experience has enabled Goldman Sachs to leverage digital technology to expand their risk-management and trading capabilities.
