BoA unveils liquidity aggregating algorithm
10 July 2007 | 1377 views | 0
Source: Bank of America
Bank of America today announced the launch of Fusor, a liquidity aggregating algorithm designed to locate and amass available shares from a wide array of market centers, including stock exchanges, crossing networks, electronic communications networks (ECNs), and dark pools.
Fusor is the tenth algorithm available through the company's suite of trading tools, Electronic Algorithmic Strategy Execution (EASE).
Unlike smart order routers, which evaluate market destinations individually, the Fusor algorithm maintains a simultaneous record of trading patterns across multiple liquidity venues and uses this data to predict total available liquidity before and during a trade, freeing the trader to better focus on execution strategy.
"We believe Fusor will help our clients improve execution quality and better manage their workflow," said Jason Crosby, head of Global Markets Electronic Trading Services Sales. "By giving a big picture of available liquidity, the Fusor algorithm will facilitate more informed trading decisions and allow traders to concentrate more on strategy, as opposed to venue."
The algorithm is expected to be especially useful in helping traders access dark pools as well as undisplayed trading interest at traditional market centers.
"Market structure changes have driven significant liquidity to dark pools which may provide investors with price improvement," added Bill Harts, head of strategy for Equities at Bank of America. "Tools like Fusor can help firms tap into hidden liquidity which will become more important as non-disclosed trading environments attract greater volume in the years ahead."