Front To Back Equity Cash Morgan Stanley

Question 1

Who are the clients morgan stanley provides equity services to

Answer 1

large sophisticated institutional clients like mutual funds, hedge funds, asset managers, governments, pension funds who wish to trade in equity cash products

Question 2

How the orders are received

Answer 2

by phone, email or electronically

Question 3

Where the self-trading clients submit orders to

Answer 3

MSET - Morgan Stanley Electronic Infrastructure that has access to exchange

Question 4

MSET

Answer 4

Provides direct access to the Exchange

Question 5

DMA

Answer 5

Direct Market Access

Question 6

What are the important factors in Electronic Trading System

Answer 6

Reliability and Speed

Question 7

Sales

Answer 7

Client focussed

Question 8

Trading

Answer 8

Exchange focussed

Question 9

what are the three types of trading clients

Answer 9

Block clients, Program trading clients and Self trading clients

Question 10

What’s FIX

Answer 10

Financial Information eXchange is an industry wide standard protocol to communicate orders electronically

Question 11

BAR

Answer 11

Border Access Router receives the order from the client and sends it to Razer.

Question 12

What’s BAR

Answer 12

It’s a gateway for clients to directly perform exchange and algorithmic trading using MSET

Question 13

OMW sales

Answer 13

Manual Global Order Management system for cash equities

Question 14

What is SORT and where it receives the order from

Answer 14

SORT is Smart Order Routing Technology and it receives the order from Razer

Question 15

Provides high speed access to markets where the particular stock is traded in order to provide cost effective way of executing an order

Answer 15

SORT

Question 16

A large order is generally

Answer 16

sliced into different small orders and each of which is sent to different exchange

Question 17

Process of determining the most cost effective way of executing an order

Answer 17

Best Execution

Question 18

Individual orders (in the form of messages) sent to exchange

Answer 18

Execution Order

Question 19

Once the buy order is matched with the sell order, the exchange returns an acknowledgement that the order has been completed

Answer 19

Execution

Question 20

Where the orders that completed execution sent down to

Answer 20

Booker

Question 21

System that captures trade information and sends execution for allocation and processing

Answer 21

Booker

Question 22

Which System does Booker send the executions for Allocation?

Answer 22

Vista

Question 23

Which System does Booker send the executions for Enrichment and further Processing

Answer 23

Trades Completion

Question 24

Global multi asset class trades allocation system

Answer 24

VISTA

Question 25

Process of taking total filled quantity against all of the client order and allocating it to each of the client's accounts

Answer 25

Trades Allocation

Question 26

Process of adding information about a trade - such as taxes, fees and commissions - required to calculate the final money to be paid on Settlement Date

Answer 26

Enrichment

Question 27

Client Notice

Answer 27

Generated by VISTA as part of confirmation and allocation process

Question 28

Client Report

Answer 28

An EOD client report is generated from ETSDB and sent to the client via email

Question 29

Process where by a confirm notice is sent to the client about the order and that the order is filled

Answer 29

Confirmation and Allocation

Question 30

ETSDB

Answer 30

Equities Trade System Database

Question 31

NOEs

Answer 31

Notice of execution generated by Vista as part of confirmation and allocation process

Question 32

System that enriches the trades with additional details such as Taxes, Fees, commissions

Answer 32

TC - Trades Completion

Question 33

Act as a control points by funneling the trades from the front office, validating and enriching them before passing on to the downstream system

Answer 33

Trades Completion, Tripod, Big Mac

Question 34

Date on which the trade is settled

Answer 34

Settlement date

Question 35

Trade processing error or data error is called

Answer 35

Breaks

Question 36

Where does TC publishes the trade to after the enrichment

Answer 36

Flexible Confirms (FC3)

Question 37

The process of netting multiple trades in a given stock within each account in order to reduce the workload fo downstream applications

Answer 37

Aggregation

Question 38

Where do the trades go to after Aggregation

Answer 38

Morgan Stanley Mainframe system called TAPS

Question 39

System that sends the confirmation message with details of a transaction to the client

Answer 39

Flexible Confirms

Question 40

Affirmation

Answer 40

The client returns an Affirmation to Morgan Stanley acknowledging the transaction

Question 41

Reconciliation

Answer 41

Prior to Clearance and Settlement, a variety of internal and external trade reconciliation is performed

Question 42

Process of calculating what market participants owe each other usually on a net basis for the exchange of securities and money on the settlement date

Answer 42

Clearance

Question 43

Who is the US cleanring house

Answer 43

NSCC

Question 44

NSCC

Answer 44

National Securities Clearing Corporation

Question 45

What does the Clearing House do?

Answer 45

Takes all the buys and all the sells, nets them out and guarantees their settlement

Question 46

Final exchange of value between counterparties to a trade

Answer 46

Settlement

Question 47

What happens on Settlement Date

Answer 47

Share of the stock are delivered to the custodian of the client via DTCC

Question 48

What's the settlement date for cash equities

Answer 48

T+3

Question 49

Custodian Job

Answer 49

Takes delivery of the Client's shares of stock and deposits cash in to Morgan Stanley's bank account

Question 50

DTCC

Answer 50

Depository - Sends a notice of settlement to Morgan Stanley SAFE system to verify that the trade has completed

Question 51

SAFE

Answer 51

A morgan Stanley's in-house settlement system, SAFE ensures that the contract agreed between the two trading parties actually gets fulfilled

Question 52

Depository

Answer 52

Place where trades are settled