October 12, 2011

Bank of America Merrill Lynch announced the launch of two futures algorithms aimed at hedge funds, proprietary traders and asset mangers that are looking to lower execution costs and make traders in a wide range of market conditions.

The company said its futures suite now includes Ambush, a liquidity-seeking algorithm that fills orders by using all displayed liquidity. It's designed to take liquidity without posting displayed orders in order to minimize information leakage, the firm added.

Bank of America Merrill Lynch's futures offering now also includes the Instinct algorithm, which the company said executes in line with market activity by factoring in market conditions, volatility and expected volume.

"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," said Jon Werts, Bank of America Merrill Lynch's head of broker-dealer execution services.

As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced ...