AlgoLink, a joint venture between the two firms, will deliver the services. Delivered through an Application Service Provider model, the new application is designed to provide risk management tools to equity hedge funds.
AlgoLink currently provides Morgan Stanley Prime Brokerage clients with:
- risk exposures by industry, sector and index
- Value-at-Risk (VaR) reports
- stress testing using historical and discrete scenarios
AlgoLink also incorporates option analytics to evaluate and model derivative and complex instruments including options, convertible bonds and futures.
These reports are available to Morgan Stanley Prime Brokerage clients, and can include positions held at multiple custodians for users of Morgan Stanley Portfolio Accounting software.
An enhanced interactive version, AlgoLink Interactive, is currently under development according to the companies, and will allow clients to control the aggregation of position data from multiple custodians. It will also reportedly allow users to add and adjust positions and scenarios on an intraday basis.
AlgoLink Interactive will also enable users to design and maintain user-specified stress test libraries and customize the content and format of the risk reports.