The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

Algorithmic trading: BoA harnesses rocket science for trading race

Bank of America gets the edge with its acquisition of Financial Labs.

news-fx-shuttle.gif

Market players believe Bank of America has pulled off a shrewd move with its takeover of Financial Labs, a specialist in algorithmic-driven pricing and trading.

FinLabs is a trading firm based in Cambridge, Massachusetts, staffed by a team of mathematicians and astrophysicists. One market participant says that FinLabs has a market-making program that sends many bids and offers into the various liquidity platforms that make up the FX market. When it trades, it immediately switches to the other side of the deal and it is said to capture the bid-offer spread repeatedly throughout the day.

Christiane Mandell, global head of foreign exchange for Bank of America, says: “This acquisition is another important step in achieving the overall growth plan we have set out for Bank of America’s foreign exchange platform.”

She adds: “The team of physicists and astrophysicists that are the core of Financial Labs have established themselves as leaders in high-frequency trading. Their expertise meaningfully enhances our ability to provide automated, efficient pricing to our clients and continually deliver world-class market making.”

Acceleration

This all seems a world away from the days when cable traders in London took positions depending on whether the tide was in or out in the River Thames.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree