Bank of America is trying to trade bigger share blocks for the institutional investors and the mutual funds by discovering news ways of connecting the orders across the equities trading desks of the company. The bank will be pursuing the bigger transactions with a system of messages which are going to indicate the possible buy or sell interest. This can be sent among various groups right within the firm and also executed at real time basis. The Managing Director and also the Global Head of Portfolio Distribution of The Bank of America, Jason Crosby, announced its features recently. This tool is going to enable the matches for institutions which have private clients, derivative desks for handling customer orders and the portfolio or cash trading units of the firm, as confirmed by Crosby.
Incidentally, for the first time in last 5 years, the Down Jones Industrial Average closed above the 14000 mark on 1st February, 2013. According to Crosby, this shows that the clients are now expanding the investments in the individual companies relative to the exchange traded funds and index products. This is happening as the confidence in the economic recovery has grown and hence, the Bank of America is focusing more on the long term investors now.
The 2nd largest bank in US by asset value is counting more on stock picking to give the interest in the trading block on the platform a boost. According to Crosby, the macro events the world have been living through for all these time has now started to subside and the clients are more interested in single stocks for growth, without any requirement to invest aggressively in the market. Incidentally, the equities are currently responding to the company specific developments in a bigger way.
Introducing the new messaging product is part of the rebranding of the global equities division of the Bank of America. The bank has been doing the same under the banner of Trader Instinct. Incidentally, the MLXN dark pool which is a private venue for the US shares has been named as Instinct X now. Right in 2013, the current suite of algorithms will have an upgrade. This will bring automated strategies which will allow the clients to break the bigger orders into some smaller bits. Those will be funneled to the exchanges or other relevant venues.