In an effort to simplify its electronic options trading platform, BofA Merrill Lynch 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 minimising complexity and allow for full customisation.
“Options traders are looking for sophisticated strategies without all the intricacies on the front-end,” says 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. Smart Spreads is the multi-legged strategy that moves spread orders among multiple exchange complex order books in an effort to maximise fill rates.
Traders will no longer have to choose one capability at the expense of another; rather they will be able to combine complimentary functions.