Bank of America Merrill Lynch is hosting a charity event Tuesday, donating all commissions for transactions made through its electronic loan trading platform, Instinct Loans, to the Food Bank For New York City, according to an e-mail sent to market participants.
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The Instinct platform allows multiple participants to bid on a specified number of loans during twice daily sessions. The bank held the first 30 minute session June 16.
BAML reached its first US$1bn of pure electronic trading volume on August 30, according to the September 19 e-mail to clients. The bank said in a Tuesday e-mail to market participants that 43% of inquiry to the system has resulted in a trade, including phone follow ups to electronically-initiated interest.
There was US$628bn of par, or performing, loan trades in 2015, down from a five-year high of US$647.3bn in 2014, according to Markit data.
With the contribution from the charity day, BAML will donate Thanksgiving pantry boxes, with a goal to provide thousands of meals to New York City���s neediest, the bank said in the September 19 e-mail.
���We appreciate our clients' support of Instinct Loans and are proud to support the Food Bank For New York City, which provides food for approximately 64 million free meals a year for New Yorkers in need,��� said Brian Callahan, head of electronic initiatives and US par loan trading for global credit and special situations at BAML.
Charity trading days have become more popular, with some banks hosting celebrities and encouraging traders to don costumes.
(Reporting by Kristen Haunss; Editing by Michelle Sierra and Jon Methven)