Page 5: Technological developments
Morgan Stanley's drive to combine technological and business developments has led to:
- Electronic Trading Laboratories (ETL Traders). Using a strategic programme built into the system, these can trade stocks in very large quantities. Specialist traders now have a different role. They focus upon fluctuations in market trends and then use this knowledge to amend and refine computer programmes that trade the stocks electronically.
The processing system makes buying/selling decisions based upon the rules and parameters provided by the programme. As a result, decisionsare based heavily upon the highly specialised knowledge provided by a smaller number of traders and the variables caused by the tactical 'human' element within a transaction have been reduced.
- Passport. This is a Windows web application that allows users to buy and sell stocks on stock exchanges worldwide. Unlike other Web instruments that are geared to simple trading transactions, this takes into account other factors such as time zones across the world and the opening times of stock exchanges. This provides connectivity between professional traders from outside Morgan Stanley who want to transact business directly on stock exchanges rather than have traders undertake it on their behalf.
Both products are less exposed to the random actions of people within the operational processes and rely more on using the strategic knowledge of expert staff as a basis for programming and using higher level technological and business skills.
This produces fewer errors and releases Morgan Stanley's staff to focus upon clearly customer-oriented work e.g. improving and developing customer relationships, so that further product developments, however complex, can be built more closely around their needs.
Such developments help Morgan Stanley to deliver real-time information to employees and clients across the globe, 24 hours a day.