Trading Technology

10:46 AM
Connect Directly
Google+
Twitter
RSS
E-Mail
50%
50%

BofA Merrill Lynch Unveils European Pairs Algo

Bank of America Merrill Lynch announced the launch of a pairs algorithm for the European market, the latest step in a plan to roll out such strategies for each region globally.

Bank of America Merrill Lynch announced the launch of a pairs algorithm for the European market, the latest step in a plan to roll out such strategies for each region globally.

A pairs trade is a strategy of matching a long and short position in two stocks of the same sector. The firm said its algorithm has four operating modes; spread, inverse spread, ratio and inverse ratio. It's also designed to enable traders to customize their executions to suit their own trading styles and objectives.

"Over the past year we have seen global interest in pairs trading grow significantly," Ashok Krishnan, head of the company's EMEA Execution Services segment said in a statement. "We began in the U.S. last year, and since then our technology team in Europe has been developing the platform to handle cross currency trading, among other enhancements."

The pairs algorithm allows control over child order size, passive and aggressive order book tactics and formula entry, the firm added. As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio

Register for Wall Street & Technology Newsletters
Video
Exclusive: Inside the GETCO Execution Services Trading Floor
Exclusive: Inside the GETCO Execution Services Trading Floor
Advanced Trading takes you on an exclusive tour of the New York trading floor of GETCO Execution Services, the solutions arm of GETCO.