[ 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)
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