Bank of America Merrill Lynch Unveils New Pairs
Algo Trading Strategy
June 09, 2010 09:03 AM Eastern Daylight Time
NEW YORK--(EON: Enhanced Online News)--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.”
Bank of America Merrill Lynch is a leading global provider of equity and options trading, sales and research services
to the mutual funds, hedge funds, broker-dealers, pensions, endowments and other institutions. Its award-winning
algorithmic trading platform was ranked as one of the top three providers of algorithmic trading, (1) and as having one
of the top three market share positions of daily global algorithmic trading volumes in 2009. (2) Bank of America
Merrill Lynch is also ranked the No. 2 World’s Best Broker by Bloomberg Markets. (3)
Bank of America
Bank of America is one of the world's largest financial in