Morgan Stanley trader Edward Glenn Hadden is under investigation by CME Group for trade he made in Treasury futures four years ago as an employee of Goldman Sachs, according to the New York Times.
Hadden, who is a managing director and head of global interest rates products at Morgan Stanley, was a partner at Goldman Sachs and head of government bond trading.
Regulators at CME Group initiated a probe against Hadden concerning Treasury futures orders placed on the expiration date in December 2008. Citing people brief on the matter, the New York Times says the probe aimed to establish whether Hadden’s late trades had manipulated closing prices and, in turn, made other positions he held more profitable.
Hadden has been given formal notice by CME that an inquiry is under way, maning that it is at an advanced stage. The article goes on to say, “it is unusual for someone of Hadden’s stature to be the target of a civil complaint like this, and if he is found to have violated exchange rules, he could, in the extreme, face millions in fines and be barred from trading on the CME Group.”
Morgan Stanley confirmed that Hadden continues to work at the firm as head of global rates.