Morgan Stanley

Morgan Stanley Electronic Trading (MSET) Launches New Functionality for its Options Trading Offering

May 6, 2008

New Discretionary Order Type will Allow Traders More Control over Order Display

New York —


Morgan Stanley (NYSE: MS) today announced that it would offer enhanced listed options capability through its electronic trading platform.  The new discretionary order type for listed options will allow traders to display their order at the chosen price and quantity while having the ability to trade at a more aggressive price when liquidity is available.  Discretionary orders are available on Morgan Stanley’s Passport and via FIX.

Orders will rest passively on an exchange chosen by Morgan Stanley’s OSORT (Options Smart Order Router), displayed partially at the chosen price and quantity, while holding the balance in reserve.  Alternatively, traders can use discretionary orders to also allow an entire order to be held in reserve.  When a bid or offer appears at or within the limit price, the order will aggressively access liquidity in multiple exchanges.  Discretionary orders are built upon Morgan Stanley’s OSORT engine, which helps manage the fragmented liquidity by optimally routing options orders based on factors that include price, speed, stability and options market rules.

“We are pleased to offer this advanced capability to our clients as we see a growing demand for options trading in the electronic market,” said Andrew Silverman, Managing Director and Head of Distribution for Morgan Stanley Electronic Trading (MSET).  “This new capability will give our clients an advantage by protecting them from signaling their intention to buy or sell in the market.”


Discretionary order type enhances Morgan Stanley’s listed options offering which includes access to all U.S. and most European exchanges, real-time market data and options pricing models, OSORT and spread trading.

“This new functionality, in addition to our current derivatives offering, will give Morgan Stanley clients a key strategic advantage in the marketplace,” said Kevin Woodruff, Head of North America Equity Derivatives at Morgan Stanley.  “In addition to options, our MSET derivatives offering provides access to U.S. equity swaps and a broad range of futures exchanges globally.”

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