Bringing you live news and features since 2006 

Bank of America Merrill Lynch launches ETF algorithm

RELATED TOPICS​

Bank of America Merrill Lynch has launched an exchange-traded fund algorithm, ETF-aX.

This new ETF-specific algorithm analyses market depth and price data across an ETF’s underlying portfolio to identify the most efficient combination of ETF, stock and futures, and then automatically trades them to source liquidity and find the best prices.

"The primary challenge with trading ETFs is market fragmentation; liquidity is limited outside of the top-ranked ETFs," says Charlie Whitlock, an execution consultant at BofA Merrill. "By using ETF-aX, clients are able to leverage our in-house ability to trade a combination of the component parts in different markets, gaining liquidity at more efficient pricing."

Upon receiving a client’s order to trade an ETF, the engine analyses inside pricing and depth of book across the ETF, stock, and futures markets to compile a picture of available liquidity.

Once ETF-aX determines the optimal way to transact, balancing a desire for the best pricing against a need to capture the most liquidity, slices are simultaneously sent out to all market centres. A composite ETF price is assembled from the different executions and provided to clients.

Latest News

Saving and investing app, Moneybox, has doubled the number of ETFs available on the platform, in the light of ‘growing..
Global X ETFs has announced the appointment of Ryan O'Connor as its Chief Executive Officer effective as of April 8, 2024. ..
Value-driven structured credit investing firm, Angel Oak Capital Advisors, LLC, has announced the completed conversions of two of its mutual..
Confidence in the continuing strength of bitcoin and Ethereum is driving wider interest in altcoins and other digital assets, according..

Related Articles

Sal Esposito, Zacks Investment Management
Zacks Investment Management started doing investment research in 1978 and in 1992 started its investment management arm, initially with SMAs...
Jeremy Senderowicz, Vedder Price
Jeremy Senderowicz, a member of the Investment Services Group at law firm Vedder Price, has witnessed a steady upswing in...
Graham MacKenzie, Toronto Stock Exchange
The evolution of ETFs has been a multi-decade experience for Toronto Stock Exchange says Graham MacKenzie, managing director, Exchange Traded...
Frank Koudelka, State Street Global Services
ETF data provider and ETF Express data partner, Trackinsight, has published its Global ETF Survey 2024 Report: ‘50+ Charts on...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by