Investment bank Morgan Stanley has introduced Speedway, its high-speed direct market access (DMA) solution for low latency trading, to Europe and Asia.
Available in the US since September 2007, Speedway enables high-frequency traders who are not exchange members to trade directly with roundtrip microsecond latency.
Morgan Stanley clients trading through Speedway can interface directly with exchange application processing interfaces or through FIX protocol across all supported markets. Speedway is also designed to use proprietary risk controls intended to reduce the risk of erroneous orders from accessing the market.
The solution aims to meet new market access criteria expected imminently from the US Securities and Exchanges Commission (SEC). The SEC proposed in January to abolish ”naked' sponsored access, which allows a non-exchange member to trade directly on an exchange without going through its broker's trading infrastructure or pre-trade checks, by requiring brokers providing sponsored access or DMA to implement pre-trade risk controls.
“The expansion of Speedway into Europe and Asia provides one of the only global solutions for traders who require the lowest latency available around the world,” said William Neuberger, global co-head of Morgan Stanley Electronic Trading. “Our continuous investment in Speedway's risk checks and low-latency technology make us a trusted partner in the high-speed trading community.”