Summary

• Page properties (1 modified, 0 added, 0 removed)

Details

Page properties

Content

...	...	@@ -53,10 +53,13 @@
53	53
54	54	=== Equity - Financing ===
55	55
56		-Morgan Stanley provides financing, prime brokerage and fund administration services to their clients active in the equity markets through a variety of products, including margin lending, securities lending and swaps. Results from this business are largely driven by the difference between financing income earned and financing costs incurred, which are reflected in Net interest for securities lending products, and in Trading revenues for derivative products. Fees for providing fund administration services are reflected in Asset management revenues.
	56	+Morgan Stanley provides financing, prime brokerage and fund administration services to their clients active in the equity markets through a variety of products, including margin lending, securities lending and swaps. Results from this business are largely driven by the difference between financing income earned and financing costs incurred, which are reflected in Net interest for securities lending products, and in Trading revenues for derivative products. Fees for providing fund administration services are reflected in Asset management revenues.
57	57
	58	+=== Equity - Execution Services ===
58	58
	60	+A significant portion of the results for this business is generated by commissions and fees from executing and clearing client transactions on major stock and derivative exchanges, as well as from OTC transactions. The company makes markets for the clients principally in equity-related securities and derivative products, including those that provide liquidity and are utilized for hedging. Market-making also generates gains and losses on inventory held to facilitate client activity, which are reflected in Trading revenues. Execution services also includes certain Investments and Other revenues.
59	59
	62	+
60	60	== Wealth Management ==
61	61
62	62	Wealth Management segment includes revenues from the distribution of newly issued securities. Morgan Stanley works as principal to the customers' purchases and sales of fixed income instruments. The company also manages the employees' deferred compensation plan from which it records gains and losses. Morgan Stanley earns commissions and fees from client transactions primarily in equity securities, insurance products, mutual funds, futures and options. The firm also earns revenues from order flow payments for directing customer orders to broker-dealers, exchanges and market centers for execution. This segment also include services associated with fee-based assets, account service and administration, as well as distribution of products. The company receives revenue for advisory services to these areas. The revenues generated from these services are generally based on the net asset value of the account in which a client is invested. Within the Wealth Management business segment, Interest income is driven by Investment securities, Loans and margin loans. Interest expense is driven by Deposits and other funding. Upon acquisition, E*TRADE’s Investment securities were recorded at fair value, and the resulting premium is being amortized over the life of the portfolio against interest income.