Algorithmic Trading

Morgan Stanley shoots for Brazil electronic flow

Morgan Stanley has become the latest bulge-bracket investment bank to offer electronic trading services in Brazil.

Brazilian exchange group BM&F Bovespa has introduced a number of measures to attract more electronic order flow in recent month, including a deal with US derivatives bourse the Chicago Mercantile Exchange to build an electronic trading platform by 2011 that will match orders in less than a millisecond.

Morgan Stanley will offer clients direct market access (DMA) and algorithmic trading strategies in Brazil comprising VWAP, arrival price, TWAP, target percentage of volume, price react and close. The algos will be available via Morgan Stanley’s Passport execution management system or third-party order and execution management systems. DMA will be delivered via Passport or a FIX connection.

Morgan Stanley follows Goldman Sachs, Barclays Capital, UBS, Bank of America Merrill Lynch and Credit Suisse, which have all launched electronic services in Brazil within the last ten months.

"The expansion of our existing platform in Brazil underscores our commitment to the region and to arming our clients with the tools they need to navigate the Latin American marketplace," said Andrew Silverman, managing director and co-head of Morgan Stanley Electronic Trading.

Morgan Stanley has offered electronic trading services in Mexico since July last year.