Morgan Stanley Expands Electronic Trading Offering in Australia

Sydney —

SYDNEY, August 30, 2010 - Morgan Stanley (NYSE: MS) today announced the expansion of its electronic trading platform in Australia. This includes the launch of MS POOL in the region and the availability of new algorithmic strategies, such as Algorithm Manager and MS PORT, for the Asia-Pacific market.

As Morgan Stanley's premier global liquidity destination, MS POOL combines many sources of order flow into one aggregated dark pool of liquidity, providing enhanced crossing opportunities for natural liquidity and potential price improvement for clients, while maintaining confidentiality with order-handling practices. 

MS POOL first launched in the United States in 2006, and soon after rolled out in Europe and Asia (Tokyo and Hong Kong).

Steve Davis of Morgan Stanley Electronic Trading (MSET) in Australia said that these enhanced electronic trading facilities are focused on providing optimum results to the broad spectrum of the Firm's clients.

 "Traders in Australia and throughout the world face the same challenges in sourcing premium, natural liquidity. MS POOL provides a solution for this, while still maintaining the confidentiality of orders," said Mr. Davis.

 "In line with the Firm's continued product expansion in Australia, the scope and quality of our electronic trading capability has been significantly enhanced to meet the changing needs of our clients," said Ian Chambers, Head of Morgan Stanley's Institutional Equities Division in Australia.

Morgan Stanley has also enhanced its algorithmic offering in the Asia-Pacific region with the launch of Algorithm Manager and MS PORT. Algorithm Manager is a new tool that provides traders with dynamic control over the execution strategy of individual orders by switching between MSET algorithms as market conditions change.

MS PORT enables traders to implement multiple portfolio level instructions such as risk and cash balancing, resulting in better overall execution and risk management. MS PORT optimizes execution at the portfolio level by taking into account correlations among assets as well as volatitity and projected market impact.

The launch of Algorithm Manager and MS PORT are part of Morgan Stanley's global expansion of its customisable electronic trading platform.

Morgan Stanley Electronic Trading (MSET) provides a complete spectrum of services, from pre-trade analytics and execution to post-trade execution performance analysis and commission management.  MSET offers a comprehensive algorithmic trading suite and various direct market access (DMA) strategies, including our smart order routing technology and our dark pool aggregator. 

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,200 offices in 42 countries.  For further information about Morgan Stanley, please visit www.morganstanley.com.

 

MSET AUSTRALIA FACT SHEET

Morgan Stanley Electronic Trading (MSET) provides a premium liquidity destination for the Australian market with MS POOL, as well as industry leading execution strategies tailored for the Asia-Pacific region.

MSET Overview

MSET's Australian offering leverages our market-leading global trading platform, experienced coverage teams and market structure consultants to help clients achieve their execution objectives.  Furthermore, MSET helps clients access the Firm's broader global offerings and research.

The MSET Difference

Differentiated liquidity philosophy

  • MS POOL is a ‘dark pool' that provides enhanced crossing opportunities for natural liquidity and potential price improvement to our clients
  • In keeping with MSET's commitment to confidentiality, our platform provides:

      - Full protection of client orders and information pre, intra and post-trade

- Complete transparency on how orders are routed and where trades are executed

  Global comprehensive offering

  • Multiple asset classes:

           - Equities

           - Options

           - Futures

           - FX 

  • Global access to markets in over 50 countries

 Localised best execution tools

  • Algorithm Manager

- A new execution strategy that provides traders with dynamic control over the execution strategy of individual orders

  •  "I Would Lit"

- A new functionality that provides traders with the ability to switch an order from one of MSET's benchmark algorithmic strategies to its liquidity-seeking NightOwl strategy if price becomes favourable

 Customised trading platform

  • Passport Global

- Morgan Stanley's enhanced Passport execution management system is fully

  customisable and one of the leading institutional trading platforms in the market

- Passport's stable and robust system has withstood even the most high volume days

  "Medium-touch" service and local support

  • Our "medium-touch" platform offers not only self-directed trading tools, but also access to top-notch local coverage teams and Australian market structure experts

 MSET Algorithmic Offering in Australia

  SORT DMA/Iceberg: obtains high-speed seamless access to fragmented liquidity sources globally

 NightOwl: obtains maximum liquidity access by combining algorithmic trading, DMA, broker crossing systems, dark pools and exchanges

 Night Vision: Intelligently interacts with broker crossing systems and dark liquidity pools, including MS Pool

 Algorithm Manager: dynamically manages execution by switching between algorithms as market conditions change

VWAP: distributes an order over a specified time period based on historical trading patterns, with price and volume constraints

TWAP: executes trades evenly over a specified time period based on historical trading patterns

TPOV: intelligently participates with the composite volume at a targeted rate and dynamically adjusts to real-time changes in volume

Arrival Price: minimises the execution shortfall relative to the midpoint of the bid/ask at the time of order entry, based on acceptable level of risk and impact

Price React: minimises the execution shortfall relative to the midpoint, while increasing participation in the market as the stock moves favourably in the trader's direction

Pegged: display price will float with best bid offer for short sell orders

MS PORT: manage risk and trade as a portfolio rather than a series of discrete names