Morgan Stanley Investment Management Reduces FX Options Book

A recent report published by Risk.net shows that Morgan Stanley Investment Management (MSIM) has decreased its foreign exchange (FX) options book by almost 33% in the first three months of 2022 amid broader market contraction.

According to the details shared in the report, leading players across the US market witnessed a dip in the FX options volume and related trading instruments in the first quarter of 2022. BNP Paribas took a major hit in Q1 2022 as a large percentage of its volumes dropped during the mentioned period.

BNP Paribas, which was ranked third in the dealer rankings in the fourth quarter of 2021, dropped to 8th position in the first quarter of 2022.

Morgan Stanley’s Q1 Results

In April 2022, Morgan Stanley released its financial results for the first quarter of 2022. During the reported period, net revenues dropped by almost 6% compared to the same period in 2021.

“Institutional Securities reported net revenues for the current quarter of $7.7 billion compared with $8.6 billion a year ago. Pre-tax income was $2.8 billion compared with $3.4 billion a year ago. Equity underwriting revenues significantly decreased from a year ago on lower issuances in line with market volumes in an uncertain market environment. Fixed income underwriting revenues decreased from a year ago as macroeconomic conditions contributed to lower bond issuances,” Morgan Stanley highlighted in its recent Q1 2022 report.

In the first quarter of 2022, Morgan Stanley’s transactional revenues decreased significantly compared to the same period last year.