Morgan Stanley has expanded its prime brokerage offering with the launch of new custodial services for long securities held by prime brokerage clients. The custodial services will be provided directly by Morgan Stanley Trust National Association (MSTNA), the US national chartered trust company regulated by the Office of the Comptroller of the Currency.

MSTNA provides clients the option to hold their long securities with a Morgan Stanley subsidiary that is independent from Morgan Stanley’s US and UK broker dealers.

Rich Portogallo, Head of Institutional Clients and Services at Morgan Stanley, said: “Recent market events have increased the demand for solutions that mitigate counter-party risk for hedge funds. The launch of new custodial services from MSTNA underscores Morgan Stanley’s commitment to providing hedge fund managers and investors with alternative asset protection solutions in addition to our financing services and technology.”

Joe Davis, Managing Director in Morgan Stanley Prime Brokerage and President of the custody business of MSTNA, said: “We have created a platform that provides a seamless client experience across Prime Brokerage’s and MSTNA’s systems, and offers fully automated transfers, aggregated reporting and a single client service point of contact.”