Morgan Stanley 2015 Annual Report Download - page 176

MORGAN STANLEY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Offsetting of Derivative Instruments.
Offsetting of Derivative Instruments and Related Collateral.
At December 31, 2015
Gross
Amounts(1)
Amounts Offset
in the
Consolidated
Statements of
Financial
Condition
Net Amounts
Presented in the
Consolidated
Statements of
Financial
Condition
Amounts Not Offset in the
Consolidated Statements of
Financial Condition(2)
Net Exposure
Financial
Instruments
Collateral
Other Cash
Collateral
(dollars in millions)
Derivative assets
Bilateral OTC ............................. $ 340,573 $ (316,042) $ 24,531 $ (9,190) $ (9) $ 15,332
Cleared OTC .............................. 106,623 (105,331) 1,292 — — 1,292
Exchange traded ........................... 24,382 (21,592) 2,790 — — 2,790
Total derivative assets .................... $ 471,578 $ (442,965) $ 28,613 $ (9,190) $ (9) $ 19,414
Derivative liabilities
Bilateral OTC ............................. $ 324,671 $ (299,039) $ 25,632 $ (5,384) $ (5) $ 20,243
Cleared OTC .............................. 108,063 (107,245) 818 — — 818
Exchange traded ........................... 24,616 (21,592) 3,024 (405) — 2,619
Total derivative liabilities .................. $ 457,350 $ (427,876) $ 29,474 $ (5,789) $ (5) $ 23,680
At December 31, 2014
Gross
Amounts(1)
Amounts Offset
in the
Consolidated
Statements of
Financial
Condition
Net Amounts
Presented in the
Consolidated
Statements of
Financial
Condition
Amounts Not Offset in the
Consolidated Statements of
Financial Condition(2)
Net Exposure
Financial
Instruments
Collateral
Other Cash
Collateral
(dollars in millions)
Derivative assets
Bilateral OTC ............................. $ 427,079 $ (396,582) $ 30,497 $ (9,844) $ (19) $ 20,634
Cleared OTC ............................. 217,169 (215,576) 1,593 — — 1,593
Exchange traded ........................... 32,123 (27,819) 4,304 — — 4,304
Total derivative assets .................... $ 676,371 $ (639,977) $ 36,394 $ (9,844) $ (19) $ 26,531
Derivative liabilities
Bilateral OTC ............................. $ 410,003 $ (375,095) $ 34,908 $ (11,192) $ (179) $ 23,537
Cleared OTC ............................. 211,695 (211,180) 515 — (6) 509
Exchange traded ........................... 32,608 (27,819) 4,789 (726) — 4,063
Total derivative liabilities ................. $ 654,306 $ (614,094) $ 40,212 $ (11,918) $ (185) $ 28,109
(1) Amounts include $4.2 billion of derivative assets and $5.2 billion of derivative liabilities at December 31, 2015 and $6.5 billion of derivative assets and $6.9
billion of derivative liabilities at December 31, 2014, which are either not subject to master netting agreements or collateral agreements or are subject to such
agreements but the Company has not determined the agreements to be legally enforceable. See also “Fair Value and Notional of Derivative Instruments” herein,
for additional disclosure about gross fair values and notionals for derivative instruments by risk type.
(2) Amounts relate to master netting agreements and collateral agreements, that have been determined by the Company to be legally enforceable in the event of
default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance.
For information related to offsetting of certain collateralized transactions, see Note 6.
At December 31, 2015, cash collateral payables of $86 million and at December 31, 2014, cash collateral receivables and
payables of $21 million and $30 million, respectively, were not offset against certain contracts that did not meet the
definition of a derivative.
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