DTCC, CME Need Regulators to Allow Cross-Margining Expansion Post-trade infrastructure system and services provider DTCC and derivatives exchanges company CME Group report that they would like to improve their cross-margining arrangement so that clearing members of CME and the Government Securities Division of DTCC’s Fixed Income Clearing Corp. (FICC) can trade and clear U.S. Treasury… Read More >>
Data Disposal Case Spurs $35M Penalty for MSSB
The Securities and Exchange Commission (SEC) reports settling charges against Morgan Stanley Smith Barney LLC (MSSB) “stemming from the firm’s extensive failures, over a five-year period, to protect the personal identifying information, or PII, of approximately 15 million customers.” MSSB neither admits nor denies the charges. However, it has agreed to pay a $35 million… Read More >>
FINRA Fines Morgan Stanley for Faulty Research Reports
FINRA, the broker-dealer industry’s self-regulator, alleges that — in the space of less than one year — Morgan Stanley “published approximately 11,000 equity research reports that included price charts with inaccurate historical stock ratings.” Eleven thousand! Oops. FINRA hit the venerable firm, which traces its history back to 1935 and the advent of the Glass-Steagall… Read More >>
Morgan Stanley Joins ICE Futures Abu Dhabi Exchange
IFAD Offers Hedging for Murban Oil Investment banking giant Morgan Stanley & Co. has joined the ICE Futures Abu Dhabi Exchange (IFAD), a new trading venue of exchanges operator Intercontinental Exchange, Inc. (ICE), officials say. Morgan Stanley will be an exchange and clearing member. To offer ways to trade and hedge Murban crude oil, ICE launched… Read More >>
Morgan Stanley Fined $60M for Data Security Problems
Morgan Stanley will pay a civil monetary penalty of $60 million to resolve charges via the Office of the Comptroller of the Currency (OCC) that the firm’s information security practices did not comply with the OCC’s standards. The incidents that drew the attention of the OCC are the allegedly mismanaged 2016 disposal of the hardware… Read More >>
Morgan Stanley Buys Eaton Vance & E*TRADE
Amid a lot of conflicting news stories, Morgan Stanley recently announced that it wants to acquire the wealth and investment management firm, Eaton Vance Corp., and that it closed its acquisition of online, discount brokerage E*TRADE Financial Corp. — signs that Morgan Stanley and other Wall Street giants are trending toward safer waters than the… Read More >>
Morgan Stanley Settles Swaps Reporting Case for $5M
The Commodity Futures Trading Commission reports simultaneously filing and settling charges against Morgan Stanley Capital Services LLC, a provisionally registered swap dealer, for its alleged failures to “comply with swap data reporting obligations.” The CFTC’s order requires Morgan Stanley Capital Services to “pay a $5 million civil monetary penalty and to retain a qualified outside… Read More >>
Morgan Stanley Supports the Disclosure of Emissions Financing
Earlier this month, Morgan Stanley announced that it had achieved a first among U.S. investment banking firms by joining the global steering committee of the Partnership for Carbon Accounting Financials (PCAF). In that role, the firm will lend its support in developing a methodology that will help global banks track and measure their climate change… Read More >>
Deutsche Bank to Restart Layoffs
The COVID-19 pandemic caused Deutsche Bank to pause one of several dramatic steps to improve itself — a global layoff of 18,000 staff members — but new economic pressures are causing the German banking giant to revive its headcount reduction. The about-face is in contrast to HSBC, which recently put the brakes on a layoff… Read More >>
Morgan Stanley Pays $150M to Settle MBS Cases
The California Public Employees’ Retirement System (CalPERS) and the California State Teachers Retirement System (CalSTRS) are alleging that Morgan Stanley misled them about the mortgage-backed securities (MBSs) in which they invested in the 2003 to 2007 period. Morgan Stanley officials have denied the allegations “and all claims of wrongdoing, damages and liability whatsoever.” The legal… Read More >>
