From Yahoo Finance: 2025-06-18 19:50:00

Morgan Stanley is closing its unit focused on electronic market-making for US equity options, following a trend of retail investor interest in derivatives. The move reflects the dominance of firms like Citadel Securities in this space, highlighting the challenges faced by traditional players. The firm declined to comment on the decision.

Morgan Stanley was the last major bank paying retail brokers for options order flow, a market now dominated by high-frequency trading institutions. Analysis shows the firm accounted for 6.4% of such payments in the first quarter, with the top four firms being proprietary firms led by Citadel Securities. Some employees from the unit will be reassigned within the firm.

Read more: Morgan Stanley to Shutter Electronic Equity Market-Making Unit