The TRADE 63 - Q1 2020 | Page 91

[ A L G O R I T H M I C T R A D I N G S U R V E Y ] Morgan Stanley M the largest increase in scoring of any category. Significant organ Stanley is a New York-headquartered invest- year-over-year improvement (0.42) is observed in the ment bank with over 60,000 global employees and algo monitoring capabilities category, for which Morgan 500 offices worldwide. Morgan Stanley Electronic Trading Stanley receives a ranking of 5.75 this year. (MSET) offers global electronic access across cash equities, Nearly all the remaining categories show improvement options, and futures. The firm’s electronic trading tools as well, although to a lesser extent: reduced market include a broad suite of algorithms, smart order impact, execution consistency, speed, anonymity, routing, and DMA. price improvement, ease of use, data on venue/ Morgan Stanley receives 23 responses from Average order routing logic or analysis, customer sup- long-only fund participants, ranking 11th Score port, execution consulting, dark pool access, among the peer group, unchanged from and flexibility and sophistication of smart last year. Fifty-eight percent of participants order routing. Two areas—increased trader doing business with Morgan Stanley indicate productivity and customisation—show declines. they trade at least half of the value of their Finally, the company’s average score of 5.66 ranks portfolio algorithmically. Over one-third (42%) it ninth among peers and represents an improve- manage assets greater than US$50 billion. This ment of 0.17 versus 12 months earlier. year, Morgan Stanley ranks second among peers in the cost category—an improvement of 0.47 from last year’s score. Cost improvement shows 5.66 MORGAN STANLEY RATINGS FOR ALGORITHMIC PERFORMANCE Increased trader productivity Reduced market impact Execution consistency Cost Speed Anonymity Price Improvement Customisation 5.66 5.71 5.89 6.05 5.76 5.72 5.51 5.35 Ease of use Data on venue/order routing logic or analysis Customer support Execution consulting Dark pool access Flexibility and sophistication of smart order routing Algo monitoring capabilities 5.98 5.40 5.46 5.24 5.85 5.65 5.75 KEY STATS 6.05 5.24 0.47 -0.20 Highest score (cost) Lowest score (execution consulting) Most improved (cost) Least improved (customisation) Issue 63 // thetradenews.com // 91