Morgan Stanley is to launch Algorithm Manager, its customisable algorithmic trading system, in Europe and the US in early August 2010.
The system, initially launched in Asia, has been built using technology from the established Morgan Stanley Electronic Trading (MSET) business. It was developed as long-only buy-side clients became more sophisticated in their use of algorithms and required greater control over their use.
Kevin Twitchen, executive director at Morgan Stanley, says that the investment bank launched the product in Asia in response to market demand. “We offer a client customisation experience that best fits the region and the target market. If clients demand granularity of control, we can offer that now.”
The bank's strategy included development of its technology to provide monitoring and remote feedback for clients where necessary, added Twitchen. “We have a [computer] language that allows customisation specialists on the MSET desk to carefully control and orchestrate our institutional algo plant. That gives us a large degree of flexibility to work with the clients in real time,” he said.
Twitchen explains that Algorithmic Manager meets the needs of clients who do not want to micro-manage trades, and that MSET now has the ability to meet client requirements regardless of the level of complexity. “Our platform gives us the ability to deploy a client aligned product, from orchestrating institutional algos like VWAP, to deploying systems with an extremely high level of customisation,” he said.
Morgan Stanley launched the Algorithmic Manager in Asia on 22 June 2010 with ten clients live on the platform.