Morgan Stanley 2010 Annual Report Download - page 10

credit indexes, asset-backed security indexes, property indexes, mortgage-related and other asset-backed
securities and real estate loan products.
The Company trades, invests and makes markets in major foreign currencies, such as the British pound, Canadian
dollar, euro, Japanese yen and Swiss franc, as well as in emerging markets currencies. The Company trades these
currencies on a principal basis in the spot, forward, option and futures markets.
Through the use of repurchase and reverse repurchase agreements, the Company acts as an intermediary between
borrowers and lenders of short-term funds and provides funding for various inventory positions. The Company
also provides financing to customers for commercial and residential real estate loan products and other
securitizable asset classes. In addition, the Company engages in principal securities lending with clients,
institutional lenders and other broker-dealers.
The Company advises on investment and liability strategies and assists corporations in their debt repurchases and
tax planning. The Company structures debt securities, derivatives and other instruments with risk/return factors
designed to suit client objectives, including using repackaged asset and other structured vehicles through which
clients can restructure asset portfolios to provide liquidity or reconfigure risk profiles.
Commodities. The Company invests and makes markets in the spot, forward, physical derivatives and futures
markets in several commodities, including metals (base and precious), agricultural products, crude oil, oil
products, natural gas, electric power, emission credits, coal, freight, liquefied natural gas and related products
and indices. The Company is a market-maker in exchange-traded options and futures and OTC options and swaps
on commodities, and offers counterparties hedging programs relating to production, consumption, reserve/
inventory management and structured transactions, including energy-contract securitizations and monetization.
The Company is an electricity power marketer in the U.S. and owns electricity-generating facilities in the U.S.
and Europe.
The Company owns TransMontaigne Inc. and its subsidiaries, a group of companies operating in the refined
petroleum products marketing and distribution business, and owns a minority interest in Heidmar Holdings LLC,
which owns a group of companies that provide international marine transportation and U.S. marine logistics
services.
Clients and Services. The Company provides financing services, including prime brokerage, which offers,
among other services, consolidated clearance, settlement, custody, financing and portfolio reporting services to
clients trading multiple asset classes. In addition, the Company’s institutional distribution and sales activities are
overseen and coordinated through Clients and Services.
Investments. The Company from time to time makes investments that represent business facilitation or other
investing activities. Such investments are typically strategic investments undertaken by the Company to facilitate
core business activities. From time to time, the Company may also make investments and capital commitments to
public and private companies, funds and other entities.
The Company sponsors and manages investment vehicles and separate accounts for clients seeking exposure to
private equity, infrastructure, mezzanine lending and real estate-related and other alternative investments. The
Company may also invest in and provide capital to such investment vehicles. See also “Asset Management”
herein.
Operations and Information Technology.
The Company’s Operations and Information Technology departments provide the process and technology
platform that supports Institutional Securities sales and trading activity, including post-execution trade
processing and related internal controls over activity from trade entry through settlement and custody, such as
asset servicing. This is done for transactions in listed and OTC transactions in commodities, equity and fixed
4