The Tradetech Daily

Morgan Stanley

Morgan Stanley

Strategies

Morgan
Stanley’s algorithmic suite includes Arrival Price, Price React, Close,
TargetClose, VWAP, TWAP, TPOV, Scaling TPOV, NightOwl, NightVision, Work,
Aggressive, Discretionary, Pegged, Next Auction, MS Pairs Trader and MS Port
strategies.

Key functionality

Morgan Stanley algorithms measure execution
performance versus their selected benchmark and reflect a thorough understanding
of market structure. The algorithms have been designed to offer controls and
options to assist in the execution of several industry standard order
objectives.

 

Support

Client customisations vary from simple
configuration changes to ground-up algorithm creation.

 

Morgan Stanley
Analytics (MSA) offers pre-trade analytics, detailed order entry, order flow
management, and post-execution performance measurement. MSA can be used to set
up candidate baskets, slice an index, construct optimised hedges, view
predicted trading costs and analyse costs by drilling down into different
markets, sectors and individual names. For post-trade performance attribution
and assessment, MSA provides post-trade reports that analyse trade performance
through graphical representation of trade prices and volume alongside market
activity. MSA assesses overall trade performance with clear benchmark
comparisons, and single-name performance with individual contributions to
return. The post-trade reports also analyse various execution venues.

Access

Morgan
Stanley’s algorithms are offered through Passport, the firm’s 24×6, multi-asset
class platform, in which clients can trade cash equities, futures and FX, both
through direct market access and algorithmic channels. Connectivity is provided
through FIX, Bloomberg and other GUIs.

Routing

Morgan Stanley provides global access to all major
destinations offering lit and dark liquidity. Its algorithms route to venues
based on factors including best price, reliability/stability of the venue, fill
rates, speed and cost.

 

Future plans

Morgan Stanley will develop volatility enhancements
that will provide traders with more customisation depending on market
conditions.