Morgan Stanley (NYSE:MS) announced today that it has reached an agreement with the employees of its in-house quantitative proprietary trading unit Process Driven Trading (PDT), whereby PDT employees will acquire certain assets from Morgan Stanley and launch an independent advisory firm at the end of 2012.
Morgan Stanley will have the option to acquire a preferred stake in the new entity, to be known as PDT Advisors. It is expected the full PDT team, which comprises approximately 60 employees globally, will join the independent firm.
During the two-year transition period, PDT will remain a part of Morgan Stanley and continue to manage Firm capital as it has historically. PDT will also build out its infrastructure and its third-party investment business during this period.
"PDT has generated an enviable track record within Morgan Stanley since its inception in 1993," said James P. Gorman, President and Chief Executive Officer of Morgan Stanley. "We are delighted to continue our partnership with PDT as it looks to expand its business by taking on third-party investors."
"We deeply appreciate Morgan Stanley's support of our trading business over the past 18 years. Looking forward, we are excited about the opportunity to build a premier independent investment firm while continuing our great partnership with Morgan Stanley," said Peter Muller, Founder and Head of PDT.
Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management, wealth management and credit services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 42 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.
Media Relations Contact: Mark Lake, 212.761.2430