Morgan Stanley is planning to boost its securities business by hiring several hundred more traders in the next three years, according to an interview with the new chief executive of the firm, James Gorman, in the Financial Times.
Morgan Stanley’s sales and trading operations fell behind its rivals, Goldman Sachs and JPMorgan Chase last year, pulling in revenues of $5 bn. in fixed income trading, versus $17.6 bn. for JPMorgan Chase and $23.3 bn. for Goldman. Now the firm wants to take better advantage of the boom in fixed income, commodities, currencies and interest rate trades – as opposed to the more complex derivatives that have served it well in the past.
Although Morgan hired 350 people in their securities business last year, Gorman feels the division could grow considerably larger. “We need to seriously grow our footprint in products like currencies, equity derivatives, and commodities. We could easily be 25 per cent bigger than we are,” he said.