The New York Stock Exchange scrambled to contain the fallout from The Post’s exclusive Friday report that revealed a special side deal allowing Morgan Stanley to trade large blocks of stock after the closing bell.
Exchange officials were on a witch hunt for leakers who spilled the beans on how a broker was able to make trades on the Big Board even after the markets were closed, a source told The Post.
“NYSE is freaking out,” said one source. “They are going crazy looking for who told.”
The side deal, which prevented Morgan Stanley from either risking a trade in an after-hours auction with less price discovery or waiting until Monday morning facing the uncertainty of holding the trade over the G-20 meeting weekend.
The trades prompted accusations of unfairness from Wall Street insiders, who said smaller brokers wouldn’t have gotten such treatment.
Source: New York Post