Second Morgan Stanley trader hit with £140k fine

The news comes less than a fortnight after Morgan Stanley was fined £1.4m for failing to properly supervise a trader. The trader involved received a £105,000 fine. Nilesh Shroff was found to be deliberately disadvantaging his customers by pre-hedging trades without their consent. He faces a fine and has been banned from carrying out regulated activities. Pre-hedging is a practice where firms carry out their own trading prior to customer requests, to improve the firm's position. When asked to buy shares, Shroff would first buy shares for Morgan Stanley, increasing their price, and th...