[ 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
Morgan Stanley’ s overall average score in this year’ s survey was 5.80, an improvement from 2024 with an increase of 0.14 though it still came up short of the survey average of 5.90. Morgan Stanley recorded increases in 13 of the 15 categories under review, with the two largest year-on-year increases being flexibility and sophistication of smart order routing(+ 0.37) and price improvement(+ 0.36). The least improved category was customer support, which declined by-0.21. The broker’ s highest scores were ease of use( 6.09) and three categories tied at 5.98: anonymity, dark pool access and flexibility and sophistication of smart order routing.
When compared across survey benchmarks, Morgan Stanley outperforms the category average in four key service areas, namely speed(+ 0.08), smart order routing(+ 0.08), price improvement(+ 0.07) and dark pool access(+ 0.07). At the other end of the scale, areas of underperformance include customisation(-0.46) and customer support(-0.45).
This year, Morgan Stanley received 53 responses from hedge fund managers and firms using hedge fund strategies- up from 49 in 2024- which ranks the broker joint second amongst its peers in terms of submissions. Of these 11 % stated they were looking to make use of additional providers over the next 12 months. In terms of client firm size, 30 % of hedge fund managers responding to Morgan Stanley hold between $ 1 and $ 10 billion in AUM, followed by those managers with over $ 50 billion at 25 %. The UK( 42 %) and Europe( 28 %) collectively represented 70 % of the respondents, with the remainder split across North America( 17 %), APAC( 11 %) and rest of the world( 2 %). The most commonly used performance measurement metrics were VWAP TCA, liquidity capture and implementation shortfall TCA.
Sample feedback from respondents included the following:
• Good IS algo, NightOwl
• Looking for more APAC coverage
• Access to more portfolio or pair trading algos requested
MORGAN STANLEY RATINGS FOR ALGORITHMIC PERFORMANCE
Increase trader productivity |
Reduce market impact |
Execution consistency |
Cost Speed Anonymity |
Price improvement |
Customisation |
Ease of use |
5.88 5.88 5.94 5.74 5.97 5.98 5.94 5.28 6.09
Order routing logic / analysis |
Customer support |
Execution consulting |
Dark pool access |
Flexibility / sophistication of SOR |
Algo monitoring |
Average score |
5.49 5.63 5.62 5.98 5.98 5.63 5.80
KEY STATS Category Outperformer: X4
6.09 Highest score( Ease of use) |
5.28
Lowest score( Customisation)
|
0.37
Most improved( Flexibility and sophistication of SOR)
|
-0.21
Least improved( Customer support)
|
Issue 84 // thetradenews. com // 77