Morgan Stanley will spin off its last major proprietary trading desk, Process Driven Trading, by 2012, Financial Times reports. The desk, led by founder Peter Muller, has traded equities with the bank’s own capital since 1993. The desk’s 60 employees will set up their own independent investment advisory firm, PDT Advisors, at the end of 2012. Morgan Stanley will withdraw its capital in the division, but is likely to retain a small stake and provide trading and prime-brokerage services.
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