Investor Presentaiton
MORGAN STANLEY BANK ASIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2020
33.
RELATED PARTY DISCLOSURES (CONTINUED)
Transactions with related parties (continued)
Trading and risk management
The Company enters into purchases and sales of securities and derivative transactions with other Morgan
Stanley Group undertakings primarily to meet local regulatory requirements and to manage the market
risks associated with such transactions. The Company also has a cash sweep service with other Morgan
Stanley Group undertakings to facilitate provision of financial services to clients on a global basis. All
such transactions are entered into on an arm's length basis. The total amounts receivable and payable on
such securities transactions not yet settled and the fair value of such derivatives contracts outstanding at
the
year end were as follows:
2020
US$'000
2019
US$'000
Amounts due from other Morgan Stanley Group undertakings on
unsettled securities and derivative transactions
37,900
33,636
Amounts due to other Morgan Stanley Group undertakings on
unsettled securities and derivative transactions
11,272
3,552
At 31 December 2020, the Company has pledged collateral of US$9,274,000 (2019: US$3,160,000) to
other Morgan Stanley Group undertakings to mitigate credit risk on exposures arising under derivatives
contracts between the Company and other Morgan Stanley Group undertakings. This is reported in the
statement of financial position in 'Trade and other receivables'. For the year ended 31 December 2020,
the Company received interest of US$3,000 (2019: US$13,000) from and incurred interest charges of
US$6,000 (2019: US$14,000) to other Morgan Stanley Group undertakings arising from collateral
pledged and received respectively during the year.
Infrastructure services and fees and commissions
The Company receives and incurs management charges from and to other Morgan Stanley Group
undertakings for infrastructure services, including the provision of staff, administrative support and
office facilities. Management recharges received and incurred during the year are as follows:
Amounts recharged from other Morgan Stanley Group undertakings
Amounts recharged to other Morgan Stanley Group undertakings
2020
US$'000
2019
US$'000
81,151
76,224
6,719
6,465
The management and execution of business strategies on a global basis results in many Morgan Stanley
transactions impacting a number of Morgan Stanley Group undertakings. The Morgan Stanley Group
operates a number of intra-group policies to ensure that, where possible, revenues and related costs are
matched.
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