The Gateway to Algorithmic and Automated Trading

BofA Merrill simplifies trading strategies for options

First Published 23rd January 2014

Bank of America Merrill Lynch consolidates its options algo offering into four strategies.

Jonathan Werts, head of Electronic Derivatives, BofA Merrill

Jonathan Werts, head of Electronic Derivatives, BofA Merrill

"We've revamped our algo offering by reducing parameter complexity and streamlining the process, making strategy selection more intuitive for traders."

In an effort to simplify its electronic options trading platform, BofA Merrill has consolidated its options algo offering into four strategies: Clean Sweep, Fast Sweep, Delta-Adjusted and Smart Spreads. The strategies have incorporated more flexibility while minimizing complexity and allow for full customization.

"Options traders are looking for sophisticated strategies without all the intricacies on the front-end," said Jonathan Werts, head of Electronic Derivatives. "In response, we've revamped our algo offering by reducing parameter complexity and streamlining the process, making strategy selection more intuitive for traders."

Clean Sweep and Fast Sweep are liquidity-seeking algos that leverage smart posting logic and aggressive liquidity capture. Delta-Adjusted is the firm's adaptive algorithm that allows an order to dynamically update according to order level parameters and the changing market. And finally, Smart Spreads is the multi-legged strategy that intelligently moves spread orders among multiple exchange complex order books in an effort to maximize fill rates.

By simplifying its offering, BofA Merrill aims to provide more flexibility to traders by merging the functionality of several algorithms into four core strategies. Traders will no longer have to choose one capability at the expense of another; rather they will be able to combine complimentary functions.