Morgan Stanley unveils new portfolio algo

Global bank Morgan Stanley has launched MS PORT, a new multi-asset-class portfolio execution algorithm, in the US and Europe.
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Global bank Morgan Stanley has launched MS PORT, a new multi-asset-class portfolio execution algorithm, in the US and Europe.

MS PORT allows its users to specify multiple portfolio level instructions, including risk neutralisation and cash balancing. Users can also apply and adjust over 70 different risk metrics, which include correlations between assets, volatility and projected market impact. According to Morgan Stanley, the algo also allows traders to reduce the variance of execution costs, thereby improving execution performance.

MS PORT supports equities, futures and exchange-traded funds and connects to trading venues across major markets. It can be accessed via Morgan Stanley’s Passport execution management system, a third-party vendor or directly with the support of the broker’s electronic or portfolio trading teams.

In addition, MS PORT can also be integrated with MS Analytics, Morgan Stanley’s multi-asset analytics platform. The algorithm will be made available in Asia by the third quarter of this year.

“The addition of MS PORT to our constantly evolving suite of algorithms underscores our commitment to providing our clients with a complete set of trading tools and solutions to manage their global execution needs,” said Andrew Silverman, global co-head of Morgan Stanley Electronic Trading, in a statement.

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