Bank of America Merrill Lynch today announced that it has added new cutting-edge pairs trading strategies for equity securities, the latest complement to the company's award-winning suite of global algorithmic trading products.
"Clients continue to ask us about pairs and other market neutral strategies like statistical and risk arbitrage," said Michael J. Lynch, head of Americas Execution Services at Bank of America Merrill Lynch. "By using our new pairs algo functionality, clients can quickly and easily implement these strategies."
Like the company's other algorithms, the pairs strategies leverage the firm's robust infrastructure and technology, including its smart order router, enabling access to all major liquidity sources and low latency execution.
In addition, the easy-to-use algos contain key risk controls across four strategies: Spread, Ratio, Inverse Spread and Inverse Ratio. They are available directly via several leading order management systems.
"Our trading desks already are using these algos with great success," said Dan Nachtman, product manager and director of Execution Services at the company. "We think our clients will quickly realize the quality of our new offering and adopt them as core strategies."