Morgan Stanley has introduced NightOwl, 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 algorithm utilises 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, minimises 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. NightOwl helps our clients achieve best execution in both quoted and dark markets while protecting their individual trading strategies,” says Andrew Silverman, managing director, head of Distribution, Morgan Stanley Electronic Trading.
NightOwl is currently available to clients and leverages Morgan Stanley’s recently announced reciprocal dark pool arrangements.