Bank of America Merrill Lynch
Bank of America Merrill Lynch (BAML) provides bespoke analytics to expose trends and opportunities for improvement of trading style or strategy customisation, in order to save on transaction costs. Another differentiator is the experience of BAML consultants in trading, finance, consultancy and statistical and analytical research.
Research and analytics
Execution consultants work closely with market
structure and quantitative engineering teams to produce studies, ranging from
current market trends, trading strategy performance or client specific
research. Recent papers include ‘Instinct – performance during recent market
volatility’ and ‘Trading small cap names in EMEA’.
BAML provides published reports to clients on an ad hoc
basis, or as requested. The majority of data that the firm provides to clients
is tailored to their specific requirements or style of trading. The data is
captured from BAML’s electronic algorithmic engines and enriched with stock,
sector, client and other static data, as well as tick data from the company’s
internal consolidated tape. Metrics such as benchmark strikes and statistics
are available at an historical and intra-trade level of granularity.
BAML customisation ranges from providing minor
tweaks to a client’s algorithmic strategy, to designing and implementing new
strategies to meet clients’ specific trading objectives.
In execution services, BAML has teams of people
dedicated to providing technical support. Execution consultants work closely
between clients and the firm’s internal technical support to ensure issues are
Together with four other
investment banks that provide transaction cost analysis (TCA) to other clients,
BAML recently proposed an industry-wide forum for agreeing consistency of TCA
definitions and metrics. This resulted in a paper titled ‘Open TCA’.