The TRADE 56 - Page 80

[ A L G O R I T H M I C T R A D I N G S U R V E Y ] Bank of America Merrill Lynch B ank of America Merrill Lynch (BAML) drew the second-highest percentage of hedge fund respon- dents within this year’s survey, with only Kepler Cheu- vreux receiving more responses. BAML’s percentage of the total hedge fund respondents, was consistent with its percentage of responses in last year’s survey. Just under half of these responses were from very large clients managing more than $50 billion of assets, with around one quarter from the $10-50 billion of assets under management bracket. The majority of respondents said their usage of BAML algos increased year-on-year, with just under one Bank of America Lynch quarter recording consistent usage and Merrill one respon- Improve dent indicating that usage had declined. One-third Reduce of respondents said they Year are considering adopting algos trader market productivity 2018 5.43 2017 impact 5.38 5.75 RATINGS FOR ALGORITHM PERFORMANCE from other providers in the future, with optimised LIS interaction, mid-touch service, SI routing selection and innovative liquidity listed as desired algo features. While BAML did record decreasing scores in nine of the 14 categories ranked by respondents, these were in-line with the overall survey averages. The bank saw the most significant drop in rankings in the speed, crossing and dark pool access, however the most con- cerning will be a drop in its customer support rating, which fell from a score of 6 in 2017 to 5.25 in this year’s survey. BAML received marginally increased ratings for its customisation and smart order routing capabilities this year, with the largest increase coming P C for its execution consulting, which was scored 5.83 by Execution hedge fund respondents. Cost Speed Anonymity ri u consistency 5.69 5.50 5.80 5.31 5.65 5.74 5.43 Improve trader productivity 5.38 Reduce market impact Execution consistency 5.31 Cost 5.17 2018 5.77 # # 2017 5.75 5.69 5.50 Speed c s 5.69 # # 5.17 5.80 5.65 5.74 5.69 5.77 Anonymity 5.07 5.27 Price improvement 5.62 5.45 Customisation 5.74 5.80 Ease of use 5.05 Crossing 5.63 5.25 Customer support Execution consulting 6.00 5.83 5.24 5.19 Dark pool access 5.61 5.62 5.58 Smart order routing capabilities 0.00 80 // TheTrade // Summer 2018 1.0 0 2. 2BRbr