Bank of America Merrill Lynch
Bank of America Merrill Lynch''s Smart Order Routing Technology (SORT) is available globally as an integral part of its suite of execution tools. SORT takes market signals and statistical feeds, including estimations of dark and hidden liquidity, to ensure optimal routing, and is adapted to each market''s microstructure and each venue''s execution options.
Access and algorithmic integration
SORT is fully integrated into
BAML”s execution platform,
which allows clients to access
it whether they are trading
through DMA, algorithms or
the bank”s cash or portfolio
trading desks.
Destinations
BAML connects to venues
based on trading volumes
and demand from clients and
internal traders. BAML”s
global market structure
group works closely with
exchanges and alternative
trading venues to monitor
marketplace developments.
Order types and client reporting
The order types offered via
SORT vary according to local
market microstructure and
regulations. Clients are
provided with both standard
and bespoke quantitative
venue maps of where they
have executed as well as the
value added provided by
smart order routing.
Data feeds
SORT takes in a variety of
feeds and signals, using real-time,
historic and internally
generated estimates to
provide it with maximum
market intelligence.
Routing logic
SORT routes orders based on
the probability of fill, which
includes estimations for
queue time, hidden orders
and latency when trading
across lit and dark venues. It
also uses heat mapping that
includes hidden volume
estimations and orders can be
dynamically rerouted if any
new information comes to
light. Clients are able to
advise their specific routing
preferences, which can be
changed at short notice.
In the event of an
exchange outage or other
issues that may affect routing,
BAML alerts its team
immediately and offers its
clients the ability to route
away without interruption.
Future plans
BAML plans to add new
venues and further enhance
its SORT specific signals in
the coming 18 months.