Bank of America Merrill Lynch has added four new electronic options algorithms to the company’s algorithmic trading platform, helping clients achieve their options trading objectives.
These algorithms complement the company’s existing options and stock-specific algorithmic strategies designed for institutional equity and options traders, as well as broker dealers.
Bank of America Merrill Lynch’s options algorithms are available directly from its proprietary platforms InstaQuote( )and ML X-Trade, its proprietary FIX API, as well as third-parties including Bloomberg, ConvergEx’s Eze OMS, Derivix, and RealTick.
Four new options algorithms include:
Clean Sweep – Exhausts hidden and displayed liquidity and then posts residual;Hidden Sweep – Unique logic that sweeps the market when the order is marketable. The residual will not post;Iceberg – A synthetic reserve order allowing traders to designate how much of the order should be displayed when posting to the market;NBBO Sweep – An order type that selects exchange based on NBBO. Order will shift to a ‘sweep’ strategy based on displayed liquidity.
“We developed these options algorithms in response to client requests for additional flexibility to dynamically interact with available liquidity, as well as to navigate sophisticated exchange market structure,” says Jon Werts, head of Broker Dealer Execution Services. “Developing these strategies helps our clients stay ahead in this rapidly evolving market segment.”
“We continuously strive to improve our offering and actively manage our technology. These new option algorithms are based on our new technical infrastructure, creating a fast, efficient resource for our clients.”
L.D.