Front To Back Equity Cash Morgan Stanley Flashcards Preview

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Flashcards in Front To Back Equity Cash Morgan Stanley Deck (52):
1

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

2

How the orders are received

by phone, email or electronically

3

Where the self-trading clients submit orders to

MSET - Morgan Stanley Electronic Infrastructure that has access to exchange

4

MSET

Provides direct access to the Exchange

5

DMA

Direct Market Access

6

What are the important factors in Electronic Trading System

Reliability and Speed

7

Sales

Client focussed

8

Trading

Exchange focussed

9

what are the three types of trading clients

Block clients, Program trading clients and Self trading clients

10

What's FIX

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

11

BAR

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

12

What's BAR

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

13

OMW sales

Manual Global Order Management system for cash equities

14

What is SORT and where it receives the order from

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

15

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

SORT

16

A large order is generally

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

17

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

Best Execution

18

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

Execution Order

19

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

Execution

20

Where the orders that completed execution sent down to

Booker

21

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

Booker

22

Which System does Booker send the executions for Allocation?

Vista

23

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

Trades Completion

24

Global multi asset class trades allocation system

VISTA

25

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

Trades Allocation

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

Enrichment

27

Client Notice

Generated by VISTA as part of confirmation and allocation process

28

Client Report

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

29

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

Confirmation and Allocation

30

ETSDB

Equities Trade System Database

31

NOEs

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

32

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

TC - Trades Completion

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

Trades Completion, Tripod, Big Mac

34

Date on which the trade is settled

Settlement date

35

Trade processing error or data error is called

Breaks

36

Where does TC publishes the trade to after the enrichment

Flexible Confirms (FC3)

37

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

Aggregation

38

Where do the trades go to after Aggregation

Morgan Stanley Mainframe system called TAPS

39

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

Flexible Confirms

40

Affirmation

The client returns an Affirmation to Morgan Stanley acknowledging the transaction

41

Reconciliation

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

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

Clearance

43

Who is the US cleanring house

NSCC

44

NSCC

National Securities Clearing Corporation

45

What does the Clearing House do?

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

46

Final exchange of value between counterparties to a trade

Settlement

47

What happens on Settlement Date

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

48

What's the settlement date for cash equities

T+3

49

Custodian Job

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

50

DTCC

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

51

SAFE

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

52

Depository

Place where trades are settled