FX Week

Morgan Stanley Launches Sub To Trade Derivative Products

NON-BANKS

Morgan Stanley Group Inc. has followed the lead taken by several fellow investment banks by establishing a highly-rated derivatives subsidiary. The new triple-A rated, Morgan Stanley Derivative Products Inc. (MSDP), will engage in currency, interest rate and equity derivative transactions, officials say.

"The market has become more sensitive to credit quality of swaps providers. So we launched this triple-A rated sub in order to maintain our position as a premier swaps provider," says Stephen