By George C. Miller of Shustak Reynolds & Partners, P.C. posted on Wednesday, March 25, 2020.

George C. Miller

Partner

Location: San Diego, California
Phone: (619) 696-9500 (Ext. 105)
Direct: (619) 501-8270
Email: [email protected]

On March 25th, Murphy’s law took full effect when Morgan Stanley’s order entry and order status systems ground to halt, blocking financial advisors and clients from viewing account information and entering trades.  The firm later reported that “multiple applications are experiencing latency or may be unstable.”  Some clients reported problems accessing their accounts online; others reported seeing incorrect account values and balances.  While advisors were allowed to route trades through a redundant trading system, that system reportedly was very slow. 

A day later, Morgan Stanley pledged to “make adjustments” to client accounts that may have experienced losses as a result of the trading glitch.  It is unclear, however, whether the firm intends to make those advisors whole, or offer some other form of remediation.  According to a Morgan Stanley advisor interviewed by AdvisorHub, “clients will get the best price,” and “management has been busy cleaning up trades.”  Clients who lost money as a result of the outage, however, should consider speaking with counsel to explore the full extent of their potential damages. 

Shustak Reynolds & Partners, P.C. focuses its practice on securities and financial services law and complex business disputes. 
We represent many broker-dealers, registered representatives, investment advisors, investors and businesses. 
Partner George C. Miller can be reached in the firm’s San Diego office at (619) 696-9500. 

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