Bloomberg – Bank of America Corp., the largest U.S. lender by assets, is offering clients an electronic trading strategy that can automatically create shares of exchange-traded funds by buying and selling stocks and hedging with futures.
The Charlotte, North Carolina-based bank estimates that more than a third of its electronic clients will adopt the algorithm, which seeks liquidity in ETF shares and related securities at the best price, said Charlie Whitlock, a director in the bank’s execution services team. The ETF-aX product is aimed at mutual and hedge fund managers and broker-dealers.
