Morgan Stanley and MUFG to Further Collaborate on FX Offerings

Japan’s MUFG and Morgan Stanley have signed a Memorandum of Understanding (MoU) to collaborate on their foreign exchange offerings in a bid to further enhance their respective trading businesses according to a story in The Trade news. Specifically, MUFG’s main banking offshoot (MUBK) will link with fixed income at Morgan Stanley MUFG Securities (MSMS), utilizing Morgan Stanley’s global FX business platform. The move comes in the face of regulatory developments, the constant electronification of markets and the increased adoption of new technologies, said the banks. “Global players have responded by scaling up FX trading volume by expanding and diversifying their customer base and by increasing technology investments,” they said. Plans are to be implemented in the first half of 2024, subject to regulatory approvals. With this new agreement – known as Alliance 2.0 – both sides are set to benefit from an enhanced scale and reach.