[ 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
While the majority of scores attributed to Morgan
organ Stanley attracted the third-highest level of
Stanley stayed at a consistent level in this year’s survey,
responses to this year’s hedge fund algo survey,
with some minor fluctuations both up and down, there
representing a significant increase on its percentage of
were some areas of performance that will be of concern.
responses year-on-year. Over half of respondents man-
Morgan Stanley saw decreasing year-on-year scores
age more than $10 billion in assets, while the remain-
in the improving trader productivity (down 0.68),
der were from mid-sized AuM brackets. Hedge fund
reducing market impact (down 0.98) and customisation
respondents for Morgan Stanley were highly active in
(down 1.08) categories in particular, with the bank’s
the listed derivatives and foreign exchange market via
lowest score coming in the latter category, where its
algos, while one-third also traded in the ETF space.
customisation was ranked at 4.53. There were increased
Less than half of respondents indicated that their
scores for Morgan Stanley’s cost, crossing, and ease of
usage of Morgan Stanley algos had increased year-on-
use capabilities, while its’ highest score came in the
year, with the majority stating that usage remained
Morgan
Stanley
customer support category (5.86). The bank was able
at a consistent level.
Only one-fifth
of respondents
to outperform the overall survey average in half of the
said they are considering adopting algos Improve
from other
Reduce
Execution
categories under
review in this year’s
survey.
providers.
Year
trader
Cost
Speed
2018
2017
RATINGS FOR ALGORITHM PERFORMANCE
productivity
5.18
market impact
consistency
4.93
5.86
5.52
5.91
5.51
5.64
5.39
5.18
Improve trader productivity
2017
5.91
Execution consistency 5.52
Cost 5.51
5.39
5.64
5.63
Speed
Anonymity 5.52
Price improvement 5.49
5.55
4.53
Customisation
2018
5.86
4.93
Reduce market impact
5.63
5.97
5.91
5.61
5.76
5.80
Ease of use
5.41
5.29
Crossing
5.86
5.76
Customer support
5.19
5.30
Execution consulting
5.58
5.67
Dark pool access
5.53
5.72
Smart order routing capabilities
0.00
92 // TheTrade // Summer 2018
1.0 0
2.00
3.00
4.0 0
5.00
6.0 0
7.00
5.97