Morgan Stanley is expanding its prime brokerage offering with the launch of new custodial services for long securities held by prime brokerage clients.

Morgan Stanley is expanding 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, a US national chartered trust company.

"Recent market events have increased the demand for solutions that mitigate counter-party risk for hedge funds,' says Rich Portogallo, head of institutional clients and services at Morgan Stanley. '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 best in class financing services and technology."

MSTNA gives 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.