Morgan Stanley has been fined by the securities regulator NASD for failing to report or incorrectly reporting thousands of transactions in corporate and municipal bonds.

The regulator has fined the bank $2.9m (€2.3m). The violations include failing to execute hundreds of customer trades at the best available price, being slow to report or misreporting thousands of stock and bond trades, failing to send required documents to hundreds of customers in connection with municipal bond transactions and failing to enforce the firm's written supervisory procedures covering municipal bonds.