Glenn Hadden, Morgan Stanley's top interest-rate trader, has left the bank amid a challenging turnaround effort in its bond-trading business, according to a memo sent to the securities firm's staff Monday.

Hadden, 43-years-old, is leaving immediately after a three-year stint as the head of Morgan Stanley's interest-rate sales and trading business. He assumed the role in 2011 after spending 14 years at Goldman Sachs Group where he was a partner.