Barclays 2010 Annual Report Download - page 216

Notes to the financial statements
For the year ended 31st December 2010 continued
14 Derivative financial instruments continued
The Group’s total derivative asset and liability position as reported on the balance sheet is as follows:
Total derivatives 2010 2009
Notional
contract
amount
£m
Fair value Notional
contract
amount
£m
Fair value
Assets
£m
Liabilities
£m
Assets
£m
Liabilities
£m
Total derivative assets/(liabilities) held for trading 48,517,204 418,586 (403,163) 39,131,979 415,638 (402,019)
Total derivative assets/(liabilities) held for risk management 240,353 1,733 (2,353) 180,018 1,177 (1,397)
Derivative assets/(liabilities) 48,757,557 420,319 (405,516) 39,311,997 416,815 (403,416)
Derivative movements on the balance sheet were broadly flat compared to prior year with assets of £420bn as at 31 December 2010 (2009: £417bn)
and liabilities of £406bn (2009: £403bn). Movements in derivatives during the year were mainly the result of decreases in forward interest rates in major
currencies and new and increased business activity, partly offset by initiatives to reduce balance sheet usage such as the placement of existing derivative
positions with clearing houses and the compression of over the counter derivative contracts via Tri-optima, a third party intermediary.
Derivative asset exposures would be £378bn (2009: £374bn) lower than reported under IFRS if netting were permitted for assets and liabilities with the
same counterparty or for which we hold cash collateral. Derivative liabilities would be £362bn (2009: £363bn) lower reflecting counterparty netting and
collateral placed.
The fair values and notional amounts of derivative instruments held for trading are set out in the following table:
Derivatives held for trading 2010 2009
Notional
contract
amount
£m
Fair value Notional
contract
amount
£m
Fair value
Assets
£m
Liabilities
£m
Assets
£m
Liabilities
£m
Foreign exchange derivatives
Forward foreign exchange 1,823,186 22,882 (22,674) 1,457,271 18,148 (18,019)
Currency swaps 935,420 29,802 (32,433) 810,666 26,008 (32,357)
OTC options bought and sold 739,949 7,736 (7,034) 539,976 7,332(7,321)
OTC derivatives 3,498,555 60,420 (62,141) 2,807,913 51,488 (57,697)
Exchange traded futures – bought and sold 8,149 – – 2,035 – –
Exchange traded options – bought and sold 7,207 – – 28,220– –
Foreign exchange derivatives 3,513,911 60,420 (62,141) 2,838,168 51,488 (57,697)
Interest rate derivatives
Interest rate swaps 10,316,455 202,050 (183,665) 9,408,811 193,133 (179,744)
Forward rate agreements 4,711,960 2,625 (2,881) 4,436,6283,595 (3,289)
OTC options bought and sold 4,551,516 66,055 (65,395) 5,113,613 63,647 (61,304)
OTC derivatives 19,579,931 270,730 (251,941) 18,959,052 260,375 (244,337)
Exchange traded futures – bought and sold 706,678 – – 547,685 – –
Exchange traded options – bought and sold 268,855 – – 272,960– –
Exchange traded swaps 21,209,173 – – 13,424,261 – –
Interest rate derivatives 41,764,637 270,730 (251,941) 33,203,958 260,375 (244,337)
Credit derivatives
OTC swaps 1,780,264 45,977 (44,068) 1,932,635 55,302(51,000)
Exchange traded credit default swaps 172,211 1,040 (976) 84,161 993 (780)
Credit derivatives 1,952,475 47,017 (45,044) 2,016,796 56,295 (51,780)
Equity and stock index derivatives
OTC options bought and sold 118,363 9,340 (13,424) 124,944 13,042(15,681)
Equity swaps and forwards 56,478 2,226 (2,359) 45,922 2,057 (1,718)
OTC derivatives 174,841 11,566 (15,783) 170,866 15,099 (17,399)
Exchange traded futures – bought and sold 96,582 1 (4) 57,565 – –
Exchange traded options – bought and sold 206,881 3,016 (2,812) 130,885 2,631 (2,371)
Equity and stock index derivatives 478,304 14,583 (18,599) 359,316 17,730(19,770)
Commodity derivatives
OTC options bought and sold 93,937 3,778 (3,751) 92,508 4,262(4,215)
Commodity swaps and forwards 326,336 18,743 (19,133) 252,621 22,872(22,012)
OTC derivatives 420,273 22,521 (22,884) 345,12927,134 (26,227)
Exchange traded futures – bought and sold 358,550 3,240 (2,326) 312,8832,436 (2,008)
Exchange traded options – bought and sold 29,054 75 (228) 55,729 180(200)
Commodity derivatives 807,877 25,836 (25,438) 713,741 29,750(28,435)
Derivative assets/(liabilities) held for trading 48,517,204 418,586 (403,163) 39,131,979 415,638 (402,019)
214 Barclays PLC Annual Report 2010 www.barclays.com/annualreport10