Merrill Lynch said it rolled out an enhanced set of algorithmic trading tools that allow market participants to tune settings on strategies down to each order that is to be executed.

The brokerage and securities trading arm of Bank of America said its flagship suite of tools will now be known as Instinct.

The tool set has five “urgency levels,’’ depending on how aggressive a firm wants to be and how volatilely markets are acting.

The company did not announce new customers for its Instinct, but “client adoption has been swifter than anticipated,” said Roger Anerella, head of Global Execution Services. “Its intelligent reaction to quantitative signals helps our clients achieve their trading objectives, especially in times of high volume and volatility.”

The algo has been simplified by combining overlapping strategies and reducing complexity of parameters that need to be set, before orders are sent out.

“We’ve taken the complexity out of the front-end and moved it to the back-end so entering trades is much more intuitive,” said Ashok Krishnan, head of Execution Services, EMEA.

The tools react in real time to market signals real time signals such as bid-ask size, bid-ask imbalance, market impact, short-term price movements, volatility and frequency of prints on the tape. Here’s a video that describes a case example.

The tool set is available in the United States, Europe, Middle East and Asia. It use can be tailored, from dark liquidity aggregation to instant market access.

A 2011 Greenwich Associates survey ranked Bank of America Merrill Lynch one of the three top electronic trading services providers for equities in the United States.

-- This article first appeared on Securities Technology Monitor.




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