Businessweek

nvestment Research division, which, as of December 2012, provided fundamental research on approximately 3,700 companies worldwide and approximately 40 national economies, as well as on industries, currencies and commodities. Institutional Client Services activities are organized by asset class and include both cash and derivative instruments. Cash refers to trading the underlying instrument (such as a stock, bond or barrel of oil). Derivative refers to instruments that derive their value from underlying asset prices, indices, reference rates and other inputs, or a combination of these factors (such as an option, which is the right or obligation to buy or sell a certain bond or stock index on a specified date in the future at a certain price, or an interest rate swap, which is the agreement to convert a fixed rate of interest into a floating rate or vice versa). Fixed Income, Currency and Commodities Client Execution includes interest rate products, credit products, mortgages, currencies, and commodities. Interest rate products includes government bonds, money market instruments such as commercial paper, treasury bills, repurchase agreements and other highly liquid securities and instruments, as well as interest rate swaps, options, and other derivatives. Credit products includes investment-grade corporate securities, high-yield securities, credit derivatives, bank and bridge loans, municipal securities, emerging market and distressed debt, and trade claims. Mortgages includes commercial mortgage-related securities, loans and derivatives, residential mortgage-related securities, loans and derivatives (including U.S. government agency-issued collateralized mortgage obligations, other prime, subprime and Alt-A securities and loans), and other asset-backed securities, loans and derivatives. Currencies include growth-market currencies. Commodities include oil and natural gas, base, precious and other metals, electricity, coal, agricultural, and other commodity products. Equities consist of equity client execution, commissions and fees, and securities services. Equities Client Execution: The company makes markets in equity securities and equity-related products, including convertible securities, options, futures and over-the-counter derivative instruments, on a global basis. As a principal, the company facilitates client transactions by providing liquidity to its clients with large blocks of stocks or options, requiring the commitment of its capital. In addition, the company engages in insurance activities where it insures, reinsures and acquires portfolios of insurance risk. The company also structures and executes derivatives on indices, industry groups, financial measures and individual company stocks. The company develops strategies and provides information about portfolio hedging and restructuring and asset allocation transactions for its clients. The company also works with its clients to create specially tailored instruments to enable investors to establish or liquidate investment positions or undertake hedging strategies. The company engages in the trading and development of equity derivative instruments. The company’s exchange-based market-making activities include making markets in stocks and exchange-traded funds. The company is designated market maker for stocks traded on the New York Stock Exchange (NYSE), a registered market maker for ETFs on NYSE Arca, a market maker in listed options on the International Securities Exchange, the Chicago Board Options Exchange, NYSE Arca, the Boston Options Exchange, the Philadelphia Stock Exchange, the Miami Options Exchange and NYSE MKT, and a market maker in futures and options on the Chicago Mercantile Exchange and the Chicago Board of Trade. Commissions and Fees: The company generates commissions and fees from executing and clearing institutional client transactions on major stock, options and futures exchanges worldwide. The company provides its clients with access to electronic low-touch equity trading platforms, and electronic trades account for the majority of its equity trading activity. Securities services consist of financing, se