Morgan Stanley is setting up a European venue for fund managers to buy and sell shares — but it will not be based in London. The US investment bank hopes to launch its new multilateral trading facility before the end of the year, according to people with knowledge of the plans. The move will pitch the bank into direct competition with rivals...
Morgan Stanley plans to establish a new multilateral trading facility (MTF) based in Europe as it seeks to adapt its business model to changes introduced by MiFID II. The decision to open the facility, which will put the bank in direct competition with Goldman Sachs and UBS, in Europe comes as Brexit exposes the City to challengers to its dominance in Europe’s capital markets. Morgan Stanley generated higher revenues from trading for institutional investors than any of its rivals in 2017.