The scheduling strategy (algorithm) aims to achieve or outperform a defined benchmark. Each strategy utilizes historical and forecasted stock-specific statistics to dynamically determine when, how much and how frequently to trade. OPL (Optimal) – Balances price impact against delay costs to minimize implementation shortfall. More>> QMOC – Executes an order into the bell-balancing price impact against the objective of beating the closing price. More>> VWAP – Executes an order over a given time interval with a full-day or interval VWAP benchmark. More>> CLOCK – Executes an order evenly over a given time interval to achieve the TWAP (time-weighted average price). More>> POV (Percentage of Volume) – Trades an order optimally achieving a target volume participation rate. More>> TWIN – Trades two stocks based on a price ratio or spread. More>>   OPL (Optimal) – Balances price impact against delay costs to minimize implementation shortfall Basic User Controls: Start Time, Max % of Volume, Limit Price, Benchmark Risk Factor Example: ‘Buy 100,000 XYZ, start at 9:45, max participation rate of 10% of volume, but be aggressive’ Model Behavior: Minimize slippage from the current XYZ price while representing no more than 10% of the market volume over the life of the order, with an aggressiveness level of ‘high’. This level of aggressiveness will tend to have a shorter duration, higher potential impact, but a lower opportunity cost than less aggressive levels. QMOC – Executes an order into the bell balancing price impact against the objective of beating the closing price Basic User Controls: Max % of Volume, Limit Price, Benchmark Risk Factor Example: ‘Buy 100,000 XYZ into the close, low benchmark risk level’ Model Behavior: The model determines the appropriate start time based off of volume and price forecasts into the bell. The ‘low’ aggressiveness level translates into a lower participation rate in the closing auction and into the close, an earlier start time, less potential impact, but potentially more opportunity cost versus the close. VWAP – Executes an order over a given time interval with a full-day or interval VWAP benchmark Basic User Controls: Start Time, End Time, Max % of Volume, Limit Price, Benchmark Risk Factor Example: ‘Buy 100,000 XYZ, VWAP from 14:30 to 15:30’ Model Behavior: Seek to achieve VWAP between 14:30 and 15:30 by submitting slices of the order according to historical and real-time volume patterns in XYZ. CLOCK – Executes an order evenly over a given time interval to achieve the TWAP (time-weighted average price) Basic User Controls: Start Time, End Time, Max % of Volume, Limit Price, Benchmark Risk Factor Example: ‘Buy 100,000 XYZ, TWAP from 14:30 to 15:20’ Model Behavior: The model will slice the order into 10 lots of 10,000 shares, and trade each slice over 5 minutes. POV (Percentage of Volume) – Trades an order optimally achieving a target volume participation rate Basic User Controls: Start Time, Target % of Volume, Limit Price, Benchmark Risk Factor Example: ‘Buy 100,000 XYZ, start at 9:45, and represent 1/3 of volume’ Model Behavior: Begin trading at 9:45 and will maintain 33% of the trading volume. The order will complete once 300,000 shares of XYZ have been traded in the market. TWIN – Trades two stocks based on a price ratio or spread Basic User Controls: Start Time, End Time, Max % of Volume, Limit Price, Benchmark Risk Factor, Ratio and/or Spread Factor Example: ‘ Sell 100,000 XYZ, Buy 150,000 ABC when price (XYZ) / price (ABC) >2' Model Behavior: Model trades once the last price of XYZ becomes greater than two times the last price of ABC. ML X-ACTsm is a registered service mark of Merrill Lynch & Co., Inc.