Free Site Registration

A New Way to Judge the Buyside

MSIM overhauls trading performance metrics

Traders Magazine, March 2009

Nina Mehta

In the quantitative world of finance, evaluating the performance of traders has long been an important but elusive task. Now, as the buyside does more self-directed trading, it's becoming even more important to assess how well traders do their job and how much money this puts in the pockets of fund owners. Clear answers aren't easy to come by. But Morgan Stanley Investment Management is currently implementing a framework it believes will quantify the value a trader delivers to the firm's investment process. MSIM, which plans to compensate traders based, in part, on the numbers that emerge from its calculations, hopes other firms will embrace a similar methodology to bring more rigor to the trading discipline.

Get access to this article and thousands more...

All articles are archived after 7 days. REGISTER NOW for unlimited access to all recently archived articles, as well as thousands of searchable stories. Registered Members also gain access to exclusive industry white paper downloads, web seminars, online technology directory, the iPad App, and conference discounts. Qualified members may also choose to receive our free monthly magazine and any of our e-newsletters covering the latest breaking news, opinions from industry leaders, developing trends and trading strategies.

Already Registered?