Morgan Stanley Brokerage System Said Beset By Glitches

Reuters reports that the platform - called '3D' in a nod to its 'multidimensional design' - is intended to let the firm’s army of brokers do everything from trading stocks and picking fund managers to helping clients manage their risks. Morgan Stanley promised brokers a state-of-the-art system that would combine the best of both firms and enable advisers to give the most insightful financial advice in the business.

The three-year integration of the businesses has largely been completed, but the finished system is disappointing to many brokers, according to interviews with a dozen current and former employees of the firm.

In perhaps the most serious malfunction so far, certain option and derivative trades did not require some brokers to post margin for at least two days in early July, two brokers said. Margin is collateral that investors must post against some trades that carry a high risk of loss.

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Morgan Stanley brokers chafe at new system's glitches

Finally, Business Week reports that a Greek prosecutor filed misdemeanor charges against Morgan Stanley alleging insider trading over National Bank of Greece SA’s failed attempt to acquire Alpha Bank, an official in the prosecutor’s office said.

The prosecutor began a probe last year after the Greek markets watchdog looked into reports that New York-based Morgan Stanley allegedly used privileged information from its role as an adviser to National Bank to increase its stake in Alpha Bank before the offer, said the official, who asked not to be identified.