Bank of America Merrill Lynch has announced the addition of four new electronic options algorithms to the company’s algorithmic trading platform, to help its clients in achieving their options trading objectives.
Reportedly, the newly added four options algorithms include: Clean Sweep – Exhausts hidden and displayed liquidity and then posts residual; Hidden Sweep – Sweeps the market when the order is marketable. The residual will not post; Iceberg – A synthetic reserve order allowing traders to designate how much of the order should be displayed when posting to the market; NBBO Sweep – An order type that selects exchange based on NBBO. Order will shift to a ‘sweep’ strategy based on displayed liquidity.
The bank has claimed that these algorithms complement the company’s existing options and stock-specific algorithmic strategies designed for institutional equity and options traders, as well as broker dealers.
Bank of America Merrill Lynch’s options algorithms are available directly from its proprietary platforms InstaQuote and ML X-Trade, FIX API, as well as third-parties including Bloomberg, ConvergEx’s Eze OMS, Derivix, and RealTick.
Jon Werts, head of Broker Dealer Execution Services, said: “We developed these options algorithms in response to client requests for additional flexibility to interact with available liquidity, as well as to navigate sophisticated exchange market structure.”
