Morgan Stanley Electronic Trading (MSET) today announced enhancements to
its advanced suite of electronic options trading strategies. Its new
offering will allow clients to more effectively trade U.S. listed
options and better navigate the options space. In particular, MSET is
offering clients access to Morgan Stanley’s sophisticated Options Smart
Order Routing Technology (OSORT), its new stealth options order types
and algorithmic trading strategy, and its new automated delta hedging
tool. Morgan Stanley also recently provided access to its options
offering through Bloomberg’s Execution Management System, EMSX.
Morgan Stanley’s OSORT optimally routes orders to multiple options
market centers, taking into consideration a number of factors such as,
among other things, price, available liquidity, speed and execution
quality.
In addition to its exchange directed order type, MSET is offering its
clients two new order types meant to assist them in maintaining
anonymity when maneuvering through the marketplace. The stealth reserve
order allows a client to display a portion of the order at a given price
and keep the remainder of the order in reserve while OSORT searches for
liquidity within the client’s specified limits. The stealth hidden order
is a fully non-displayed order that can be used by clients to search for
liquidity while remaining completely anonymous. MSET is also offering a
new TWAP options algorithm to those clients who want to evenly spread
out their options executions over a specified time period.
“We are always looking for new ways to provide more efficient means for
our clients to electronically trade their options orders,” said Andrew
Silverman, Managing Director and Co-Head of Morgan Stanley Electronic
Trading. “In response to our clients’ needs, we have not only updated
our existing trading tools, but have created new ones and have added
them to our options offering.”
MSET has further developed an automated delta hedging tool to expand
upon the options trading capabilities of Morgan Stanley’s proprietary
front-end application, Passport. The new functionality includes
volatility trading with automated delta adjusted limit price updates,
delta neutral trading with an automated cash hedge calculation and
execution, and conditional orders based on price stops and liquidity
thresholds.
Morgan Stanley clients currently have the ability to route their U.S.
listed options orders to Morgan Stanley’s advanced electronic options
trading strategies through many different order and execution management
systems. More recently, through an arrangement with Bloomberg, clients
can leverage their existing Bloomberg EMSX access to route their U.S.
listed options orders to Morgan Stanley at no additional cost.
Morgan Stanley (NYSE: MS) 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 600 offices in 36 countries. For further
information about Morgan Stanley, please visit www.morganstanley.com.
Morgan Stanley
Media Relations
Mary Claire Delaney,
212-762-6880
