Equity trading - Morgan Stanley is closing gap with Goldman

Mon, 09/02/2024

by Ellie LeTu

Source: Financial Times

• Morgan Stanley Used to be Equity Trading Powerhouse

  • Lost its top position in 2021 after the implosion of Archegos Capital Management.

  • Landed the firm $1B+ in losses from credit extended to the firm.

• Goldman Sachs has seized the top spot

  • Posted higher revenues in eight out of ten quarters since 2022.

  • Morgan Stanley forced to pull back and reevaluate risk management after Archegos.

• New CEO leading the charge

  • Ted Pick hired in January 2024.

  • Aggressively courting quant firms like AQR and Two Sigma for their business.

  • Morgan Stanley’s equity trading revenue has increased 20% YoY, compared to just a 7% YoY increase at Goldman.

• Equity Trading Market

  • The top three banks in equity trading (by far) remain Goldman Sachs, Morgan Stanley, and JP Morgan.