Morgan Stanley’s electronic trading group is beefing up its Canadian presence.
Against a backdrop of greater fragmentation and the use of technology in trading, the big broker has hired an executive to head up electronic trading in Canada. The firm is also evaluating the launch of a dark pool in Canada.
"As the market has become more fragmented," Andy Silverman, a Morgan Stanley managing director responsible for electronic trading globally, said, "we are sharpening our focus on Canada. We need to cater to clients as they look to trade more electronically and consider which tools make sense to deploy."
Bret Goldin, who last worked for Cuttone & Co. as director of sales for prime brokerage and electronic trading, and before that, for Banc of America Securities, will head up Morgan Stanley’s Canada push. His goal is to market Morgan Stanley’s global cross-asset platform to Canadian firms, as well as provide electronic access to the Canadian markets for international firms
Goldin will join an existing Morgan Stanley office in Toronto that includes research sales, sales trading and prime brokerage. Previously, U.S.-based executives made trips to Canada to interface with clients and prospects, according to Silverman. Goldin will likely be hiring additional staffers, Silverman added.
The big broker has already stepped up its offering of electronic trading products in Canada. In June, Morgan Stanley announced the availability of an electronic routing service for inter-listed securities, those traded in both Canada and the U.S. The service identifies the market with the best price and most liquidity for inter-listed securities, and automates the foreign exchange conversion process, reducing the FX exposure, according to the firm.
The Canadian market, long dominated by dealers, is starting to transform into an electronic marketplace. While the Toronto Stock Exchange is still the dominant trading venue, the Alpha ATS and Chi-X Canada have captured about 20 percent of the market. Both Liquidnet and ITG operate dark pools in the country with other big U.S. brokers expected to follow.
