Morgan Stanley 1999 Annual Report Download - page 19

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page 17 |99 AR
worldwide pension assets and U.S. mutual fund assets, New York Stock Exchange and NASDAQ
average daily trading volumes, and credit card receivables all have shown strong growth.
The long-term trends are clearly in favor of continued expansion in financial services, despite
short-term cycles. The forces of technological change, deregulation and greater demands by
customers are driving this growth.
Within this overall picture, when you look at market share comparisons among financial services
firms, it is clear that a winnowing process is taking place. The industry continues to consolidate,
and the advantage of size and scale becomes apparent in the marketplace. Customers, who have
more information and access to markets and look to firms that can provide the greatest value in
products and services, are driving this.
In the institutional securities business, a super-bulge bracket has emerged in many product
categories, often consisting of only two or three competitors. MSDW has capitalized on this
trend: Over the past three years, our global M&A market share increased from 24 percent to
36 percent, our worldwide equity underwriting market share increased from 6 percent to 13 percent
and our global IPO market share increased from 7 percent to 13 percent. On the retail side of
the securities business, we also have achieved significant market share gains, measured both by
the number of financial advisors and by total revenues. The credit card industry is in the midst
of dramatic consolidation as well, and our Discover Card franchise is a beneficiary of growth,
with 1999 gains in both transaction volume and receivables.
Obviously, our plans for the future are not just to ride the wave. We have two top-priority
strategic initiatives on which we made significant progress this past year:
First, as we discussed in last year’s annual report, we believe the next frontier in financial
services is the global distribution of securities and asset management products to individuals.
The forces of technological change, deregulation and greater
demands by customers are driving this growth.