Every year the QSI team at Morgan Stanley comes up with something innovative and thought provoking, it’s become an unwritten rule of these awards, and 2019 is no different.
Given how the firm has led the way in terms of its analytics for so long it is sometimes hard to see where it can enhance further, but luckily it does, and this year’s innovation is called QSI React.
Simply put, QSI React improves the trading workflow by taking what are currently often disparate processes, and bring them together in one place. The pre-trade information, decision making function and execution are now all available to clients, making it a quicker and better experience.
The key element of the product is its predictive nature, indeed as we discuss in a Closer Look, the phrase used is ‘transaction cost estimation’ rather than ‘transaction cost analysis’. Although data heavy, the details are easy to ascertain and are supported by the customary excellent visualisations available on Matrix.
QSI React is about protecting the algo order from liquidity gaps or other market events that may negatively impact on the execution. Different criteria are displayed so the user can select which is most important to them and the market data is backed up by robust, thoroughly tested models in order that if market data in a particular currency pair is patchy, solid analysis can still be provided.
Morgan Stanley has long been at the forefront in terms of analytics and their delivery, QSI React takes it a stage further. As the product evolves further, the rich graphics available will come into their own and we expect both asset manager execution desks and portfolio managers to indicate great interest.
In keeping with the bank’s thoughtful approach to execution Morgan Stanley’s Fusion Edge, now available in mobile, continues to set high standards. Originally built around the bank’s excellent analytics package, Morgan Stanley has been busy adding to its functionality and in the last year or so it has cemented work started a couple of years ago in enabling client-to-client matching.
With algo volumes hitting the necessary threshold, the bank has been able to open up some of its strategies to the internal pool and allow customers to deploy Fusion Edge and new order types that allow them to front or back load the order. For example it can start with spread capture passive order placement and progress to a more aggressive mode as the chances of market impact increase.
In many ways, in the best traditions of e-FX this replicates the thought process of the human trader. In many ways it is impossible to see QSI react as anything other than an enhancement aimed at making Fusion Edge even better. If that is indeed the case then what we will have is one of the best products on the street.