Kabucom Securities collaborates with Morgan Stanley MUFG Securities (MSMS) to use Morgan Stanley’s Japanese stock trade execution platform to expand its Smart Order Routing (SOR) service and provide trade execution algorithms from from Monday, March 3, 2025. This will be the first time in Japan that Kabucom Securities’ trade execution algorithms will be offered to individual clients.
Morgan Stanley’s Equity Trading Execution Platform is a global platform that provides services to a wide range of institutional investors (asset management, pension funds, foundations, hedge funds, etc.) in the equity markets. actions from more than 35 countries, including the major countries in the world.
As securities systems around the world become faster and more sophisticated each year and investor protection standards increase, Morgan Stanley continues to invest in industry-leading upgrades to meet the needs of the most demanding and to the perspectives of stock exchanges and authorities. This earned it praise and support from institutional investors around the world, and it retained a leading share in global stock trading.
Features of the SOR service
Provide opportunities for price and fill rate improvement through consistent best price discovery and execution and rapid ordering
Morgan Stanley’s SOR has world-class data transfer and execution speed, and using this advantage, Kabucom Securities aims to achieve high price improvement effects and improve execution rates by detecting and executing the best price on each market (TSE, PTS, dark pool) not only at the time of the customer’s order but also until the full amount is executed.
In addition, not only in our company but in general, SOR compares offers from several markets and orders are placed in the best market for the customer. Currently, major online securities companies other than Kabucom Securities judge the SOR only at the time of ordering, but Morgan Stanley’s SOR judges the best quote at any time, not just at the time of ordering. order.
For example, if a more favorable order is placed on the PTS or dark pool before all orders are executed on the exchange, the exchange order is withdrawn and the order is placed on the more favorable market. au Kabucom Securities is the only major online securities company to offer this type of “withdrawal feature”.
Removal of customer order signals to the market
In addition to placing customer orders with IOC (Immediate or Cancel), the specifications aim for a rapid and simultaneous arrival of customer orders on each market (TSE, PTS, dark pool).
This specification minimizes the possibility of latency arbitrage (preemptive orders, etc.).
Extension of services for SOR orders
au Kabucom Securities will expand its automated trading services and the order corrections they provided so that they can also be used for SOR orders.
This will allow clients to use various methods of trade execution, even in trades using SOR.
Trade Execution Algorithms
at Kabucom Securities has selected seven types of trade execution algorithms from Morgan Stanley, used by institutional investors around the world, and customized them for individual clients. In addition, clients can use the basic performance of algorithms, constantly upgraded by Morgan Stanley.
By using 14 types of trade execution services, combined with Kabucom’s existing automated trading services, the company can meet the different trade execution needs of its clients.
While using its algorithm and automated trade execution services, clients can enjoy the benefits of improved pricing and enhanced execution rates through SOR.
