The Tradetech Daily

Morgan Stanley MS Pool and MS Trajectory Cross

Morgan Stanley MS Pool and MS Trajectory Cross

MS POOL is a continuous-crossing venue available in Japan, Hong Kong and Australia. MS POOL provides clients the ability to anonymously interact with the full breadth of Morgan Stanley liquidity, providing price improvement opportunities and reduced market impact.

Trajectory Cross is a unique parent-level algorithm-only crossing facility available . Trajectory Cross crosses algorithmic orders at the VWAP price over optimally selected time intervals. This crossing differs from traditional dark pools that only cross at or within the quote best bid/offer.

Functionality and order types

MS POOL accepts day orders, including market, limit
and pegged orders, does not accept immediate or cancel (IOC) orders, and is
monitored for simulated IOC orders. In addition, MS POOL does not use
indications of interest (IOIs) to solicit orders to the pool.

MS Trajectory Cross crosses orders at the volume weighted
average price over selected time intervals based on the underlying security.

Access and participation

All Morgan Stanley clients, traders and sales
traders are eligible to access MS POOL. The platform can be accessed through
the firm’s smart order router, SORT, benchmark execution strategies, and
liquidity-seeking algorithms NightOwl and NightVision, which can also access MS
Trajectory Cross.

Instruments traded

All exchange traded cash equities, ETFs, ADRs are
eligible for trading within the dark pool.

Order protection

The firm conducts regular evaluations of the
performance of algorithms, dark pools, and systems, and employs a dedicated
group of people who regularly review the quality of executions. The firm
prevents gaming in MS POOL through measures such as restricting order types,
rejecting IOCs, simulated IOCs, and not sending IOIs.

Connectivity/sharing agreements

Morgan Stanley has arrangements with other
broker-dealer dark pools to provide reciprocal access to each other’s

Future developments

Morgan Stanley is looking to bring Trajectory Cross to new markets