JP Morgan Chase 2014 Annual Report Download - page 207

JPMorgan Chase & Co./2014 Annual Report 205
The following table outlines the Firm’s primary uses of derivatives and the related hedge accounting designation or disclosure
category.
Type of Derivative Use of Derivative Designation and disclosure Affected segment or unit Page reference
Manage specifically identified risk exposures in qualifying hedge accounting relationships:
Hedge fixed rate assets and liabilities Fair value hedge Corporate 211
Hedge floating rate assets and liabilities Cash flow hedge Corporate 212
Foreign exchange Hedge foreign currency-denominated assets and liabilities Fair value hedge Corporate 211
Foreign exchange Hedge forecasted revenue and expense Cash flow hedge Corporate 212
Foreign exchange Hedge the value of the Firm’s investments in non-U.S. subsidiaries Net investment hedge Corporate 213
Commodity Hedge commodity inventory Fair value hedge CIB 211
Manage specifically identified risk exposures not designated in qualifying hedge accounting
relationships:
Interest rate Manage the risk of the mortgage pipeline, warehouse loans and MSRs Specified risk management CCB 213
Credit Manage the credit risk of wholesale lending exposures Specified risk management CIB 213
Commodity Manage the risk of certain commodities-related contracts and
investments Specified risk management CIB 213
Interest rate and
foreign exchange
Manage the risk of certain other specified assets and liabilities Specified risk management Corporate 213
Market-making derivatives and other activities:
• Various Market-making and related risk management Market-making and other CIB 213
• Various Other derivatives(a) Market-making and other CIB, Corporate 213
(a) Other derivatives included the synthetic credit portfolio. The synthetic credit portfolio was a portfolio of index credit derivatives, including short and long
positions, that was originally held by CIO. On July 2, 2012, CIO transferred the synthetic credit portfolio, other than a portion that aggregated to a notional
amount of approximately $12 billion, to CIB; these retained positions were effectively closed out during the third quarter of 2012. CIB effectively sold the
positions that had been transferred to it by the end of 2014. The results of the synthetic credit portfolio, including the portion transferred to CIB, have
been included in the gains and losses on derivatives related to market-making activities and other derivatives category discussed on page 213 of this Note.