Morgan Stanley garnered 27 first-place finishes in Energy Risk's Commodity Ranking 2005 survey, 10 more than second-place Goldman Sachs. The U.K. magazine asked some 2000 banks, brokers, end-users and traders worldwide to rank their top three principal counterparties and top two brokers.

Morgan Stanley's tally of first-place finishes ranked it first in:

• all categories overall
• all Oil categories
• all U.S. Power categories

In explanation of the Firm's success, Managing Director Marc Mourre, Fixed Income Division, touted its responsiveness. "The market is extremely active – it favours a company that can quickly absorb its clients' risks," he said in the issue.

Energy Week read the market the same way. "It truly has been a record year for energy, with over-the-counter (OTC) energy trading volumes bouncing back towards the levels before 2002, when Enron went spectacularly bankrupt," wrote Energy Week. "Volumes are up, funds are moving in, investors want to diversify their portfolios using oil or energy index products."

Mourre noted that Morgan Stanley has historically been a first-choice dealer in commodities. "One thing we did do is specialise the coverage of the different markets by industry, to give everybody a better understanding of their markets," he said. "And we found our experienced traders to be a competitive advantage."

Based on increased interest in the commodities market from investors, some old, a few new – nearly 300 hedge funds are now investing in oil and energy – Mourre did suggest Morgan Stanley would respond. "Funds and investors are a much bigger part of our business now, and we are optimistic for next year," he said.

A Selection of First- and Second-Place Finishes for Morgan Stanley in Energy Risk's Commodity Rankings

1st

• U.S. – Crude: WTI Options – Top Research Provider 
• U.S. – Crude: WTI Options– Top Data Provider 
• U.S. – Fuel Oil – Top Research Provider  
• U.S. – Middle Distillates (Inc. Jet Fuel) – Dealers 
• U.S. – Middle Distillate Options – Dealers 
• U.S. – Light Products – Dealers 
• U.S. – Light Products – Top Research Provider  
• U.S. – Residuals – Dealers 
• U.K./Europe – BFO – Dealers 
• U.K./Europe – Fuel Oil – Dealers 
• U.K./Europe – Naphtha – Dealers 
• U.K./Europe – Gasoline – Dealers 
• U.K./Europe – Gasoline – Top Research Provider  
• U.K./Europe – NWE Jet Fuel – Dealers 
• U.K./Europe – Gas Oil Cracks – Dealers 
• U.K./Europe – Gas Oil Cracks – Top Data Provider 
• U.K./Europe – Diesels – Dealers 
• U.K./Europe – Diesels – Top Research Provider 
• Singapore – Naphtha – Top Data Provider 
• Singapore – Gas Oil – Dealers 
• Singapore – Jet Kerosene – Dealers 
• Singapore – Jet Kerosene – Top Research Provider 
• Singapore – Fuel Oils – Dealers 
• Dubai – Crude – Top Research Provider 
• Dubai – Crude Options – Dealers 
• U.S. – Western North America Power – Dealers
• Europe – Coal Financial – Dealers

2nd

• U.S. – Crude: WTI – Dealers
• U.S. – Crude: WTI Options – Dealers
• U.S. – Fuel Oil – Dealers
• U.K./Europe – Brent – Dealers
• U.K./Europe – Brent Options – Dealers
• U.K./Europe – Gasoline – Top Data Provider
• U.K./Europe – NWE Jet Fuel Options – Dealers
• Singapore – Naphtha – Dealers
• Dubai – Crude – Dealers
• U.S. – Western North America Power Options