Former Top Morgan Stanley FX Trader Leaves After Lengthy Probe

A former senior Morgan Stanley trader, whose unit was embroiled in an internal probe into suspected mismarking and tens of millions of dollars of losses in 2019, has left after the investment bank disclosed allegations about his conduct.

Thiago Melzer, who oversaw trading in currency derivatives known as FX options, was “discharged” in June because of allegations concerning the valuing of certain trades and using communication methods not approved by the firm, according to a disclosure that Morgan Stanley made to the U.S. Financial Industry Regulatory Authority. The bank started an internal probe into suspected wrongdoing at the ...