BofA rolls out new futures trading algorithms

The following is from Bank of America Merrill Lynch...

NEW YORK--(BUSINESS WIRE)--Bank of America Merrill Lynch, a leading provider of automated trading tools, is pleased to introduce two new execution algorithms to meet the growing demand for its Futures trading suite: Ambush and Instinct. The latest release includes BofA Merrill’s banner algorithm Instinct, which can now be used to achieve a broader set of trading objectives and leverages BofA Merrill’s quantitative impact model.

“We’ve seen strong demand from our Futures clients who are looking to reduce execution cost while still maintaining a level of control over their orders,” said Jon Werts, head of Broker Dealer Execution Services. “Since these algos have numerous customization options, clients like CTAs, hedge funds, proprietary traders, and asset managers can execute orders within their stated parameters extremely efficiently in a variety of market conditions.”

Ambush, unique to BofA Merrill, is a liquidity-seeking algo that looks to fill orders using all available displayed liquidity. It is an adaptive algo that monitors trading impact and adjusts order placement accordingly. Its default behavior is to take liquidity without posting displayed orders in order to minimize information leakage.

The Instinct algo executes in-line with market activity by incorporating market conditions, volatility and predicted volume. The algo optimizes order placement and duration with performance measured against the arrival price. Passive order placement can rest at multiple price points, attracting liquidity and minimizing impact.

BofA Merrill is a leading global provider of equity, options and futures trading, sales and research services to mutual funds, hedge funds, CTAs, broker-dealers, pensions, endowments and other institutions. BofA Merrill was ranked as a top three U.S. equity electronic trading provider, No. 1 broker for U.S. equity sales quality in the 2011 Greenwich Associates Quality Leader Survey and ranked among the top three in U.S. equity trading vote share in the 2011 Greenwich Associates Share Leader Survey, which measures the banks’ relative importance to buy-side institutions. Its award-winning algorithmic trading platform was awarded Best U.S. Provider of Algorithms for Trading in the 2011 Canadian Investment Technology Awards from ForeFactor, was ranked one of the top three Pan-European brokerage firms for electronic trading algorithmic quality in the 2011 Thomson Reuters’ Extel Pan-European Survey and one of the top three providers of algorithmic trading in The Trade’s 2010 Algorithmic Trading Awards.

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