Bloomberg News reports that the layoffs included traders in foreign exchange and liquid flow rates, the people said, asking not to be identified as the details are private. The cuts were made starting June 3, two of the people said.
Like other firms, Morgan Stanley has been cutting headcount as regulators demand larger capital buffers and dwindling volatility curbs revenue from fixed-income trading in Europe. Morgan Stanley had 55,883 employees in the quarter ended March 31, down from 62,494 three years previously, according to its filings.
Morgan Stanley, which generates more revenue from equities trading than fixed income, was alone among major U.S. banks in registering a trading increase during the first three months of 2014, though Chief Financial Officer Ruth Porat said in April that she saw weakness ahead.
'The volumes that we talked a lot about during the first quarter - lower activity - we’re continuing to see that really does persist into the second quarter', Porat said at the time.
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