[ 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
organ Stanley attracted a consistent percentage
of long-only respondents, although the bank
ranked only 11th among profiled providers in terms
of overall response rates. Just under half of respon-
dents for Morgan Stanley came from the highest AuM
bracket (more than $50 billion), with around one-third
managing between $10-50 billion.
Morgan Stanley produced the most consistent set of
results in this year’s survey. In nine of the 15 categories
reviewed, the bank recorded scores with insignifi-
cant change (less than 0.2) year-on-year: execution
consistency, cost, speed, anonymity, price improve-
ment, customer support, execution consulting, dark
pool access, and flexibility and sophistication of smart
order routing. However, there were some clear areas
of improvement, which pushed Morgan Stanley’s
average score to 5.49, an increase of 0.18 on its score in
last year’s survey. The most significant improvement
was in the customisation category, which scored a
respectable 5.55, a year-on-year increase of 0.88, while
there were also improvements in the increasing trader
productivity (up 0.45) and reducing market impact
(up 0.35) categories. Morgan Stanley posted the lowest
score of all profiled providers in the execution con-
sulting category with 4.97, the same score it received
from respondents in last year’s survey.
MORGAN STANLEY RATINGS FOR ALGORITHM PERFORMANCE
Increase trader
productivity Reduce market
impact Execution
consistency Cost Speed Anonymity Price
improvement Customisation
5.68 5.50 5.63 5.58 5.52 5.64 5.45 5.55
Ease of use Customer support Execution
consulting Dark pool access Flexibiltiy and sophistication
of smart order routing Algo monitoring
capabilities Data on venue/order
routing logic or analysis Average
score
5.73 5.32 4.97 5.70 5.49 5.33 5.30 5.49
KEY STATS
5.73 4.97 44%
Highest score
(ease of use) Lowest score
(execution consulting) Most popular non-equity
asset traded via algo by
respondents: Listed derivatives
+0.88 0 68%
Most improved
year-on-year score
(customisation) Least improved
year-on-year score
(customer support,
execution consulting) Most used
algo performance
measurement method:
Implementation shortfall TCA
Issue 59 // TheTradeNews.com // 91