Source: Bank of America
Bank of America today announced two new derivatives-focused enhancements to its InstaQuote direct market access platform.
As the firm's latest smart order routing solution for equity options, Spread Trader was launched to help enable InstaQuote users to efficiently enter multi-leg options orders electronically across the complex order books of both the Chicago Board Options Exchange (CBOE) and the International Securities Exchange (ISE), and then source additional liquidity across all other U.S. options exchanges.
Spread Trader may be especially suited for traders seeking to enhance their multi-legged options strategies, at each leg of the trade, using sophisticated liquidity aggregators and decision support tools. Bank of America is the first to introduce this advanced options order routing technology via its own trading platform, InstaQuote.
"As equity option volume continues to grow, we see unique opportunities to help facilitate best electronic execution in the broader derivatives markets," added Dean Curnutt, head of Institutional Equity Derivative and Convertible Sales for Bank of America. "Our Spread Trader functionality is a powerful addition to the suite of tools our users have available to enter option orders electronically."
In a recent study conducted in 2006, in conjunction with Financial Insights, Bank of America found a relatively high market penetration for automated options trading. Sixty-one percent of respondents indicated that they traded some portion of their options holdings electronically, compared with just 39% who rely solely on the telephone. Respondents who execute electronically tend to be repeat users, trading more than 70% of their total order flow in an automated fashion.
In addition, the firm also announced that InstaQuote users now have full access to all futures listed on the Chicago Mercantile Exchange's (CME) Globex platform. This new functionally includes full charting capabilities, pre-trade allocation, and the ability to process iceberg orders.
"Derivatives desks are beginning to embrace automated trading technologies," explained Jason Crosby, head of Global Markets Electronic Trading Services Sales for Bank of America. "Our advanced solutions set us apart by helping traders access multiple markets and effectively enter complex trades while realizing cost efficiencies," he said.