BoFA launches new trading strategies

10 June 2010

A pair of new algo trading strategies to be used with equity securities has been launched by Bank of America (BoFA) Merril Lynch.

According to the financial institution, the new strategies incorporate the bank’s technology and infrastructure including the smart order router.

The two plans will enable users to benefit from low latency while undertaking trades as well as providing access to larger sources of liquidity.

As well as the new strategies, the algos also contain risk controls over spread, inverse spread, ratio and inverse ratio strategies.

Michael J Lynch, head of America’s Execution Services at BoFA Merrill Lynch, said: “Clients continue to ask us about pairs and other market neutral strategies like statistical and risk arbitrage.”

“By using our new pair’s algo functionality, clients can quickly and easily implement these strategies.”

Dan Nachtman, product manager and director of Execution Services at BoFA Merrill Lynch, added: “We think our clients will quickly realize the quality of our new offering and adopt them as core strategies.”

Meanwhile, BoFA has sold its share in Santander’s Mexican unit to the Spanish financial group for $2.5 billion.

By Jim Ottewill

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