Value-Added Services

Overview

Bank of America Merrill Lynch supports our clients’ success with an array of value added services including global commission management, vendor consulting, execution consulting, third party research, hedge fund consulting and more.

Trader Trends

The Speed of Dark

Faster Trading, slippage from arrival, trading, equitiy trading, portfolio managers, long only, hedge funds, dark liquidity, dark fills, blockseeker, algorithms, trader instinct, trading strategies, liquidity, participation rates, higher trading costs, participation, algo trading strategies.

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Trader Trends

High Volumes Require Premium Solutions

The US Option market has experienced consistent growth with 2013 marking the 2nd highest volume in history. Complex order book volume has become a significant portion of the overall industry volume.

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Trader Trends

Intelligent Order Routing with Greater Flexibility

Broker Dealers of all types including Agency, Proprietary and Hybrid are continually searching for the right balance between access to liquidity and costs.

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Trader Trends

Is your basket Full?

When trading portfolios, the composition of the basket of stocks, market volume, volatility, and return correlation are key factor. Many algo take a "one size fit all" approach based on static, historical data and single=period estimates. The problem with this approach is that it can cause negative cost and risk implications as these factor often differ over the course of just a few hours, even...

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Trader Trends

Anticipating liquidity events during the last 15 minutes of trading

The last 15 minutes of the trading day present significant opportunities but even within this very active timeframe there are some notable liquidity inflection points. By opportunistically participating in volume upticks at 3:45, 3:50 and 3:55, traders can effectively source liquidity while managing impact.

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Trader Trends

ETFs to Play an Aggressive Defense

Going into May with the SPX Index up a startling 12% Investor have wanted to stay in the game to capture further growth in equities but want to be defensive in case of a pullback. Then results has led to massive growth in Low or Minimum volatility ETFs, SPLV, USMV and LGLV which have all outperformed

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Trader Trends

Are You Trading Small Caps Optimally?

Nearly Half of all algo flow in Small and Micro Cap names is executed via Scheduling algorithms approx. 10% more than overall algo flow. However, the volatile volume profile and wide spread of these names can pose challenges to Scheduling algos, causing market impact as seen in the high interval returns and arrival slippage statistics below.

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Trader Trends

Does your broker run a 4.19 or a 4.82 40? Speed Matters!

In searching for hard to find liquidity, today's traders are increasingly relying on more aggressive algorithms to intelligently source safe trading venues. BofAML research has shown that dark liquidity can significantly improve order performance. BofAML has developed new routing technology, Instinct Access™, to reach these venues more quickly and actively than ever before.

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Trader Trends

Swaps: Dynamically Financing Your Portfolio

Take advantage of short term funding movements by varying your roll dates. Using data from 2000-2012, BofAML's Delta One Desk calculates that the implied funding cost in S&P 500 futures cheapens on average by 3bps post expiration. As expiration gets closer, long SPX futures rollers drive rolls richer. In Q4 2012, our most recent and extreme example, funding richened 51bps over the last two...

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Trader Trends

Fed Funds Rate Announcements Affect Overall Market Volume

Volume prediction and real-time volume tracking play a key role in algorithmic performance, especially for long-duration Scheduling strategies. Special market events can concentrate liquidity at certain times of day and alter the overall volume profile. At BofA Merrill Lynch we have found that Fed Funds Rate announcements affect the volume curve at the time of the announcement and affect...

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