Bank of America today announced the addition of a real-time, post-trade reporting system for equity options to its InstaQuote direct market access platform.
The new system will facilitate real-time trade matching, clearing and settlement across all US listed options exchanges via the Options Clearing Corporation's (OCC) Data Distribution Service.
With the launch of this service, Bank of America becomes the first OCC member and prime broker to process OCC clearing data electronically and in real-time via its own trading platform.
"We are leveraging our expertise in providing electronic trading services for cash equities to steer development of similar technologies for derivatives, while promoting greater understanding of electronic best execution practices," said Dean Curnutt, head of Institutional Equity Derivative Sales for Bank of America. "We have seen our clients increase their trading of equity options and this new functionality will provide them with quicker, more efficient trade execution and better integration of front- and back-office functions."
This enhancement provides faster, more accurate trade confirmation and virtually eliminates the lapse between allocation and settlement of equity derivative orders executed through InstaQuote.
This move also reaffirms Bank of America's commitment to developing tools that facilitate straight through processing.
"Equity derivatives are used widely by hedge funds and as a result the demand for more sophisticated technologies has increased dramatically," said Chris Pesce, global head of Prime Brokerage for Bank of America. "We are already a recognized leader in providing technology services to the hedge fund community and our new real-time reporting system significantly enhances their ability to manage risk and understand exposures."