Front To Back Equity Cash Morgan Stanley Flashcards
Who are the clients morgan stanley provides equity services to
large sophisticated institutional clients like mutual funds, hedge funds, asset managers, governments, pension funds who wish to trade in equity cash products
How the orders are received
by phone, email or electronically
Where the self-trading clients submit orders to
MSET - Morgan Stanley Electronic Infrastructure that has access to exchange
MSET
Provides direct access to the Exchange
DMA
Direct Market Access
What are the important factors in Electronic Trading System
Reliability and Speed
Sales
Client focussed
Trading
Exchange focussed
what are the three types of trading clients
Block clients, Program trading clients and Self trading clients
What’s FIX
Financial Information eXchange is an industry wide standard protocol to communicate orders electronically
BAR
Border Access Router receives the order from the client and sends it to Razer.
What’s BAR
It’s a gateway for clients to directly perform exchange and algorithmic trading using MSET
OMW sales
Manual Global Order Management system for cash equities
What is SORT and where it receives the order from
SORT is Smart Order Routing Technology and it receives the order from Razer
Provides high speed access to markets where the particular stock is traded in order to provide cost effective way of executing an order
SORT
A large order is generally
sliced into different small orders and each of which is sent to different exchange
Process of determining the most cost effective way of executing an order
Best Execution
Individual orders (in the form of messages) sent to exchange
Execution Order
Once the buy order is matched with the sell order, the exchange returns an acknowledgement that the order has been completed
Execution
Where the orders that completed execution sent down to
Booker
System that captures trade information and sends execution for allocation and processing
Booker
Which System does Booker send the executions for Allocation?
Vista
Which System does Booker send the executions for Enrichment and further Processing
Trades Completion
Global multi asset class trades allocation system
VISTA
Process of taking total filled quantity against all of the client order and allocating it to each of the client’s accounts
Trades Allocation
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
Enrichment
Client Notice
Generated by VISTA as part of confirmation and allocation process
Client Report
An EOD client report is generated from ETSDB and sent to the client via email
Process where by a confirm notice is sent to the client about the order and that the order is filled
Confirmation and Allocation
ETSDB
Equities Trade System Database
NOEs
Notice of execution generated by Vista as part of confirmation and allocation process
System that enriches the trades with additional details such as Taxes, Fees, commissions
TC - Trades Completion
Act as a control points by funneling the trades from the front office, validating and enriching them before passing on to the downstream system
Trades Completion, Tripod, Big Mac
Date on which the trade is settled
Settlement date
Trade processing error or data error is called
Breaks
Where does TC publishes the trade to after the enrichment
Flexible Confirms (FC3)
The process of netting multiple trades in a given stock within each account in order to reduce the workload fo downstream applications
Aggregation
Where do the trades go to after Aggregation
Morgan Stanley Mainframe system called TAPS
System that sends the confirmation message with details of a transaction to the client
Flexible Confirms
Affirmation
The client returns an Affirmation to Morgan Stanley acknowledging the transaction
Reconciliation
Prior to Clearance and Settlement, a variety of internal and external trade reconciliation is performed
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
Clearance
Who is the US cleanring house
NSCC
NSCC
National Securities Clearing Corporation
What does the Clearing House do?
Takes all the buys and all the sells, nets them out and guarantees their settlement
Final exchange of value between counterparties to a trade
Settlement
What happens on Settlement Date
Share of the stock are delivered to the custodian of the client via DTCC
What’s the settlement date for cash equities
T+3
Custodian Job
Takes delivery of the Client’s shares of stock and deposits cash in to Morgan Stanley’s bank account
DTCC
Depository - Sends a notice of settlement to Morgan Stanley SAFE system to verify that the trade has completed
SAFE
A morgan Stanley’s in-house settlement system, SAFE ensures that the contract agreed between the two trading parties actually gets fulfilled
Depository
Place where trades are settled
