Bank of America Merrill Lynch Introduces Two New Algos for Futures

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.

BofA Merrill is a leading global provider of equity, options and futures trading, sales and research services to mutual funds, hedge funds, CTAs, broker-dealers, pensions, endowments and other institutions. BofA Merrill was ranked as a top three U.S. equity electronic trading provider, No. 1 broker for U.S. equity sales quality in the 2011 Greenwich Associates Quality Leader Survey and ranked among the top three in U.S. equity trading vote share in the 2011 Greenwich Associates Share Leader Survey, which measures the banks’ relative importance to buy-side institutions. Its award-winning algorithmic trading platform was awarded Best U.S. Provider of Algorithms for Trading in the 2011 Canadian Investment Technology Awards from ForeFactor, was ranked one of the top three Pan-European brokerage firms for electronic trading algorithmic quality in the 2011 Thomson Reuters’ Extel Pan-European Survey and one of the top three providers of algorithmic trading in The Trade’s 2010 Algorithmic Trading Awards.

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 58 million consumer and small business relationships with approximately 5,700 retail banking offices and approximately 17,800 ATMs and award-winning online banking with 30 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.

“Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered as broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. ©2010 Bank of America Corporation

Copyright 2011 Bank of America Corporation. All rights reserved. Bank of America, Merrill Lynch, Instinct and their logos are trademarks of Bank of America Corporation and/or its affiliates.

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