BofA Merrill Lynch Launches Electronic Syndicated Loan Trading Platform06.10.2016 By John D'Antona Editor, Traders Magazine
BUSINESS WIRE- New York- Bank of America Merrill Lynch has announced the launch of a new electronic platform, Instinct Loans, for the secondary trading of syndicated corporate loans.
The platform, which is part of the firm’s ongoing commitment to providing liquidity to clients, aims to simplify and enhance the market by combining innovative technology with market-leading sales and trading professionals.
Within Instinct Loans, the Bank of America Merrill Lynch trading desk will host straightforward matching sessions into which clients can bid or offer loans against mid-market prices. Matching bids and offers will trade immediately and electronically for a fixed commission, with all clients facing Bank of America, N.A. as principal. Clients selling loans via Instinct Loans will also have the option of T+3 settlement for sale transactions to help address clients’ cash needs within the loan market.
“Providing liquidity and efficient execution are critical components of what we offer to our clients in the credit markets,” said Brian Callahan, head of Electronic Initiatives and U.S. Par Loan Trading for Global Credit and Special Situations at Bank of America Merrill Lynch. “The introduction of Instinct Loans is another demonstration of our commitment to the loan market and to using technology to better serve our clients.”
Intraday markets play an important role in banks’ liquidity optimisation strategy.
The collaboration increases access to corporate bond liquidity.
European trading in fixed income instruments is highly fragmented and non-transparent.
Buy-side trading desks are under pressure to adopt more data-driven trade automation.
COVID-19market stress highlighted the potential systemic significance of disorderly corporate bond trading.