Bank of America Merrill Lynch, a leading provider of automated trading tools, is pleased to introduce two new execution algorithms to meet the growing demand for its Futures trading suite: Ambush and Instinct®.
The latest release includes BofA Merrill's banner algorithm Instinct, which can now be used to achieve a broader set of trading objectives and leverages BofA Merrill's quantitative impact model.
"We've seen strong demand from our Futures clients who are looking to reduce execution cost while still maintaining a level of control over their orders," said Jon Werts, head of Broker Dealer Execution Services. "Since these algos have numerous customization options, clients like CTAs, hedge funds, proprietary traders, and asset managers can execute orders within their stated parameters extremely efficiently in a variety of market conditions."
Ambush, unique to BofA Merrill, is a liquidity-seeking algo that looks to fill orders using all available displayed liquidity. It is an adaptive algo that monitors trading impact and adjusts order placement accordingly. Its default behavior is to take liquidity without posting displayed orders in order to minimize information leakage.
The Instinct algo executes in-line with market activity by incorporating market conditions, volatility and predicted volume. The algo optimizes order placement and duration with performance measured against the arrival price. Passive order placement can rest at multiple price points, attracting liquidity and minimizing impact.