The Tradetech Daily

Bank of America Merrill Lynch

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.


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.