JP Morgan Chase 2014 Annual Report Download - page 211

JPMorgan Chase & Co./2014 Annual Report 209
The following table presents, as of December 31, 2014 and 2013, the gross and net derivative payables by contract and
settlement type. Derivative payables have been netted on the Consolidated balance sheets against derivative receivables and
cash collateral receivables from the same counterparty with respect to derivative contracts for which the Firm has obtained an
appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought
or obtained, the payables are not eligible under U.S. GAAP for netting on the Consolidated balance sheets, and are shown
separately in the table below.
2014 2013
December 31, (in millions)
Gross
derivative
payables
Amounts netted
on the
Consolidated
balance sheets Net derivative payables
Gross
derivative
payables
Amounts netted
on the
Consolidated
balance sheets Net derivative payables
U.S. GAAP nettable derivative payables
Interest rate contracts:
OTC $ 522,170 $ (509,650) $ 12,520 $ 467,850 $ (458,081) $ 9,769
OTC–cleared 398,518 (397,250) 1,268 354,698 (353,990) 708
Exchange-traded(a) — — — — — —
Total interest rate contracts 920,688 (906,900) 13,788 822,548 (812,071) 10,477
Credit contracts:
OTC 65,432 (64,904) 528 65,223 (63,671) 1,552
OTC–cleared 9,398 (9,398) — 16,506 (16,450) 56
Total credit contracts 74,830 (74,302) 528 81,729 (80,121) 1,608
Foreign exchange contracts:
OTC 211,732 (195,312) 16,420 155,110 (144,119) 10,991
OTC–cleared 66 (66) — 61 (59) 2
Exchange-traded(a) — — — — — —
Total foreign exchange contracts 211,798 (195,378) 16,420 155,171 (144,178) 10,993
Equity contracts:
OTC 27,908 (23,036) 4,872 33,295 (28,520) 4,775
OTC–cleared — — — — — —
Exchange-traded(a) 17,167 (15,789) 1,378 17,349 (11,415) 5,934
Total equity contracts 45,075 (38,825) 6,250 50,644 (39,935) 10,709
Commodity contracts:
OTC 25,129 (13,211) 11,918 21,993 (15,318) 6,675
OTC–cleared — — — — — —
Exchange-traded(a) 18,486 (15,344) 3,142 12,367 (11,212) 1,155
Total commodity contracts 43,615 (28,555) 15,060 34,360 (26,530) 7,830
Derivative payables with appropriate legal
opinions $ 1,296,006 $ (1,243,960) (b) $ 52,046 $ 1,144,452 $ (1,102,835) (b) $ 41,617
Derivative payables where an appropriate
legal opinion has not been either sought or
obtained 19,070 19,070 15,697 15,697
Total derivative payables recognized on the
Consolidated balance sheets $ 1,315,076 $ 71,116 $ 1,160,149 $ 57,314
(a) Exchange-traded derivative balances that relate to futures contracts are settled daily.
(b) Included cash collateral netted of $64.2 billion and $52.1 billion related to OTC and OTC-cleared derivatives at December 31, 2014, and 2013,
respectively.
In addition to the cash collateral received and transferred
that is presented on a net basis with net derivative
receivables and payables, the Firm receives and transfers
additional collateral (financial instruments and cash). These
amounts mitigate counterparty credit risk associated with
the Firm’s derivative instruments but are not eligible for net
presentation, because (a) the collateral is comprised of
non-cash financial instruments (generally U.S. government
and agency securities and other G7 government bonds), (b)
the amount of collateral held or transferred exceeds the fair
value exposure, at the individual counterparty level, as of
the date presented, or (c) the collateral relates to derivative
receivables or payables where an appropriate legal opinion
has not been either sought or obtained.