Morgan Stanley 2015 Annual Report Download - page 38

Matters Related to the CDS Market.
On July 1, 2013, the European Commission (“EC”) issued a Statement of Objections (“SO”) addressed to twelve financial
firms (including the Company), the International Swaps and Derivatives Association, Inc. (“ISDA”) and Markit Group
Limited (“Markit”) and various affiliates alleging that, between 2006 and 2009, the recipients breached European Union
competition law by taking and refusing to take certain actions in an effort to prevent the development of exchange traded
credit default swap (“CDS”) products. The Company and the other recipients of the SO filed a response to the SO on
January 21, 2014, and attended oral hearings before the EC during the period May 12-19, 2014. On December 4, 2015, the
EC announced that it had closed its antitrust investigation into the twelve financial firms, including the Company.
Beginning in May 2013, twelve financial firms (including the Company), as well as ISDA and Markit, were named as
defendants in multiple purported antitrust class actions consolidated into a single proceeding in the SDNY styled In Re:
Credit Default Swaps Antitrust Litigation. Plaintiffs alleged that defendants violated United States antitrust laws from 2008
to present in connection with their alleged efforts to prevent the development of exchange traded CDS products. The
complaints sought, among other relief, certification of a class of plaintiffs who purchased CDS from defendants in the United
States, treble damages and injunctive relief. On September 30, 2015, the Company reached an agreement with plaintiffs to
settle the litigation. The settlement received preliminary court approval on October 29, 2015, and is subject to final court
approval.
Item 4. Mine Safety Disclosures.
Not applicable.
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