Morgan Stanley trader Edward Glenn Hadden is under investigation by regulators at CME Group over trades in Treasury futures four years ago while he was employed by Goldman Sachs, according to a regulatory filing.
Hadden is a managing director and head of global interest rates products at Morgan Stanley. Prior to joining Morgan Stanley, Hadden was a partner at Goldman Sachs, and head of government bond trading.
Regulators at CME Group, which runs commodity and futures exchanges, initiated a probe against Hadden over Treasury futures orders placed on the expiration date in Dec. 2008, according to a "broker check" report published by the Financial Industry Regulatory Authority (FINRA).
The New York Times first broke news of the investigation.
Citing people briefed on the matter, the newspaper said the probe aimed to establish whether Hadden's late trades had manipulated closing prices and, in turn, made other of his trades more profitable. (http://link.reuters.com/peh44t)
A Morgan Stanley spokesman confirmed to Reuters that Hadden is still employed with the bank but did not provide further information.
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