Morgan Stanley Electronic Trading Launches NightOwl

4  from  Automated Trader Magazine

June 3rd,2008 - New Algorithm Will Simultaneously Navigate Select Dark Pools and Quoted Markets to Provide Clients with Access to the Most Natural Liquidity Possible.

Morgan Stanley has announced the introduction of NightOwlSM, a new electronic trading tool that navigates select dark liquidity pools and quoted markets to provide clients with access to the most natural liquidity possible. NightOwl is available as a direct trading destination or indirectly through Morgan Stanley’s existing algorithmic trading offerings. The new stealth algorithm utilizes Morgan Stanley’s proprietary analysis of dark liquidity pools to avoid interaction with those dark pools that disclose client order information through Indications of Interests (IOIs). This, in turn, minimizes information leakage in the handling of its clients’ orders.

"We are pleased to offer this new trading tool in response to increased client concern about having their order information disclosed through IOIs,” said Andrew Silverman, Managing Director, Head of Distribution, Morgan Stanley Electronic Trading. “NightOwl helps our clients achieve best execution in both quoted and dark markets while protecting their individual trading strategies.”

NightOwl is currently available to clients and leverages Morgan Stanley’s recently announced reciprocal dark pool arrangements.