Morgan Stanley 2015 Annual Report Download - page 58

2015 Compared with 2014.
Total sales and trading net revenues, excluding the impact of DVA and the initial implementation of FVA, of $11,832
million in 2015 increased 12% from the prior year due to higher equity, fixed income and commodities revenues.
Equity.
• Equity sales and trading net revenues, excluding the impact of DVA and the implementation of FVA, increased
driven by strong results in prime brokerage and derivatives products. Higher client balances primarily drove the
increase in prime brokerage results, while the improved results in derivatives reflected increased client activity and
gains on inventory.
Fixed Income and Commodities.
• Excluding the impact of DVA and the implementation of FVA, fixed income and commodities sales and trading net
revenues increased as higher commodity net revenues were partially offset by lower fixed income product results.
• Fixed income product net revenues, excluding the impact of DVA and the implementation of FVA, decreased due to
lower results in credit and securitized products from wider credit spread environment which were partially offset by
higher revenues in interest rates and foreign exchange products from higher client activity.
• Commodity net revenues, excluding the impact of DVA and the implementation of FVA, increased primarily
reflecting higher revenues from the global oil merchanting business, which was sold on November 1, 2015 (see
“Investments, Other Revenues, Non-interest Expenses, Income Tax Items, Dispositions and Other Items—2015
Compared with 2014—Dispositions” herein). The increase was partially offset by credit driven losses and the
absence of revenues from TransMontaigne Inc., which was sold on July 1, 2014 (see “Investments, Other Revenues,
Non-interest Expenses, Income Tax Items, Dispositions and Other Items—2014 Compared with 2013—
Dispositions” herein).
2014 Compared with 2013.
Total sales and trading net revenues, excluding the impact of DVA and the implementation of FVA, of $10,561 million in
2014 increased 1% from the prior year due to higher equity and fixed income and commodities revenues partially offset by
higher losses in other sales and trading net revenues.
Equity.
• Equity sales and trading net revenues, excluding the impact of DVA and the implementation of FVA of $2 million,
increased primarily due to higher revenues in the prime brokerage business driven by higher client balances partially
offset by a decrease in derivatives revenues, reflecting unfavorable volatility movement.
Fixed Income and Commodities.
• Fixed income and commodities sales and trading net revenues in 2014 included a charge of $466 million related to
the implementation of FVA. Excluding the impact of DVA and the implementation of FVA, fixed income and
commodities sales and trading net revenues increased as higher commodity net revenues were partially offset by
lower fixed income product results.
• Fixed income product net revenues, excluding the impact of DVA and the implementation of FVA, decreased as
higher results in interest rate products were offset by declines in credit products, which reflected an unfavorable
market environment.
• Commodity net revenues, excluding the impact of DVA and the implementation of FVA, increased reflecting higher
levels of client demand for structured transactions and volatility in natural gas and power partly offset by lower
revenues in the oil related businesses in part attributable to TransMontaigne Inc., which was sold on July 1, 2014
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