A Morgan Stanley trader who was dismissed in September after mismarking trading positions is to pay his penalty in installments after claiming the £105,000 (€117,170) sum could cause him “serious financial hardship”. His former employer has also been hit with one of the biggest fines ever handed out by the regulator.

Matthew Piper, a former proprietary trader on Morgan Stanley's investment-grade trading desk in London who traded European credit default swap indices and index options, was suspended a year ago once mismarked positon of up to $120m (€88.1m) were discovered by the bank. He was dismissed following an internal review later last year.