Morgan Stanley Said to Bring In Tutunikov as Trading Consultant

Morgan Stanley enlisted Eugene Tutunikov, Citigroup Inc.’s former head of algorithmic credit trading, to bolster the firm’s business of trading bonds electronically, according to a person briefed on the move.

Tutunikov, 31, is working as a consultant to Morgan Stanley’s credit-trading unit, said the person, who asked not to be identified discussing personnel matters. He left Citigroup earlier this year after eight years at the New York-based bank, where he helped develop a system for automated market-making in credit-default swaps.

The 2010 Dodd-Frank Act mandated that most swaps trades in the $691 trillion over-the-counter derivatives market be backed by a clearinghouse and processed electronically, spurring Wall Street to automate bond trading. Competition is also mounting. Citadel, the $24 billion hedge-fund firm founded by Ken Griffin, has hired Paul Hamill from UBS Group AG to help expand in fixed-income market-making.

Morgan Stanley was the world’s eighth-biggest bond dealer last year, bringing in about $4.2 billion from fixed income, currencies and commodities trading, compared with $15.5 billion for JPMorgan Chase & Co., the global leader, and $13.3 billion for No. 2 Citigroup.

Morgan Stanley has said credit is among the most profitable of its fixed-income trading units, with a return on equity of more than 10 percent last year.

Before it's here, it's on the Bloomberg Terminal.