Morgan Stanley

Morgan Stanley Asia Indications of Interest (IOIs) Framework

Morgan Stanley employs a variety of communication media, consistent with client instructions, to source liquidity and attract contra side trading interest. Our primary method is electronic indications of interest or IOIs. Morgan Stanley’s IOIs may be either ‘natural” or “non-natural”. “Natural” IOIs represent expressions of client interest or genuine Morgan Stanley trading interest disseminated through electronic means. Therefore, resulting transactions may be executed on an agency cross basis, principal basis or a combination of these. With respect to natural IOIs representing genuine Morgan Stanley trading interest, please be advised that in certain instances, and subject to changing market conditions, client activity and changes to our risk exposures, we may trade out of positions acquired in response to these natural IOIs on the same trading day without providing notice to you. “Non-natural” IOIs represent a more generalized willingness to transact.

In Asia, Morgan Stanley generally applies the standards in the ASIFMA Asia Pacific IOI Charter, in particular, Morgan Stanley may use:

  • C:1 - Client Natural (Block) IOI or C:2 - Client Natural (Working) IOI to represent a client cash order or a client-initiated swap hedge.
  • P:1 - Potential IOI when Morgan Stanley has a reasonable expectation that it has client interest. If this interest involves an intention to trade in “block size”, then unless otherwise agreed, Morgan Stanley may send a P1 using ASIFMA Asia Pacific IOI Charter guideline (i.e. > 20% 21 day ADV or USD 5mm). Notwithstanding the use of P:1, no assurance can be given that the potential interest will result in a trade.
  • H:1 - House Position Unwind IOI, H:2 – House Position Wanted IOI and H:3 - Market Making IOI to represent principal interest.

Morgan Stanley may at its discretion send IOIs with respect to your trading interest to other interested clients unless you expressly opt out of disseminating this information. However, this may in turn result in Morgan Stanley not displaying IOIs to you.

Morgan Stanley & Co. International PLC Seoul Branch IOIs

This information is limited to Korea stocks and is being provided to you (you or “recipient”) for the purpose of facilitating the execution of orders placed by the customer of Morgan Stanley Plc Seoul Branch (“MSK”) to the extent permitted by the applicable law and regulations of Korea. Pursuant to such laws and regulations, MSK or its affiliates provide this information only upon the condition that the recipient shall neither (i) conduct any transactions taking advantage of the price variation or fluctuation expected in light of the information nor (ii) covey any part or all of the information to a third party. You shall be solely responsible for any violations of applicable laws and regulations. The recipients are informed that information on their orders placed with MSK may be provided to other customer of MSK in form of an indication of interest, unless MSK is notified otherwise by such recipient.

Thailand IOIs

This information is provided to you for the purpose of clarifying Morgan Stanley's approach with respect to indications of interest ("IOIs") on securities listed on the Stock Exchange of Thailand (“Thai Securities”). Morgan Stanley may send IOIs in connection with Thai Securities. In connection with each such IOI with respect to a Thai Security, the IOI may be issued through one or multiple channels (e.g. local shares, foreign shares and non-voting depository receipts). Each IOI may be subject to certain market restrictions (including but not limited to applicable shareholding limits).

If you have questions regarding our IOI practices, please contact your Morgan Stanley representative.