Wall Street firms have had to bid farewell to some proprietary trading units in the wake of the Volcker Rule's passage, though the actual requirement to get rid of prop trading activity may not actually kick in for years.

In some cases, banks were likely happy to give up particular units. Not so when it comes to Morgan Stanley, where its vaunted Process Driven Trading group--a 70-person band of Ph.D.s and computer jockeys that uses "Algorithm-rich programs to bet Morgan Stanley's money on pricing discrepancies in global markets," according to Bloomberg Markets Magazine--is preparing for life apart from the big investment bank.

In January, Morgan Stanley said it would spin off the group toward the end of 2012. That day is approaching fast. This will thrust Peter Muller--the colorful guru behind the unit--into the limelight in a different way. No longer will he be able to exist in the comfy bosom of a big bank. Now he'll be in the unusual position of having to work with investors, who just might want a lot more information about how Muller generates his enviable returns.

Muller has traditionally held this extremely close. As a prop unit, that worked well. PDT has lost money in only two quarters since its inception in 1993 and has never posted an annual loss. His average annual gain has been in the 20 percent range. We'll see if he can maintain his record at a time when the bloom is off the rose for quantitative managers.

For more:
- here's the profile from Bloomberg Markets Magazine

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