JP Morgan Chase 2015 Annual Report Download - page 224

Notes to consolidated financial statements
214 JPMorgan Chase & Co./2015 Annual Report
The following table presents, as of December 31, 2015 and 2014, 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.
2015 2014
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 $ 393,709 $ (384,576) $ 9,133 $ 515,904 (c) $ (503,384) (c) $ 12,520
OTC–cleared 240,398 (240,369) 29 398,518 (397,250) 1,268
Exchange-traded(a) —— — —— —
Total interest rate contracts 634,107 (624,945) 9,162 914,422 (c) (900,634) (c) 13,788
Credit contracts:
OTC 44,379 (43,019) 1,360 65,432 (64,904) 528
OTC–cleared 5,969 (5,969) — 9,398 (9,398) —
Total credit contracts 50,348 (48,988) 1,360 74,830 (74,302) 528
Foreign exchange contracts:
OTC 185,178 (170,830) 14,348 217,998 (c) (201,578) (c) 16,420
OTC–cleared 301 (301) — 66 (66) —
Exchange-traded(a) —— — —— —
Total foreign exchange contracts 185,479 (171,131) 14,348 218,064 (c) (201,644) (c) 16,420
Equity contracts:
OTC 23,458 (19,589) 3,869 27,908 (23,036) 4,872
OTC–cleared —— — —— —
Exchange-traded(a) 10,998 (9,891) 1,107 12,864 (c) (11,486) (c) 1,378
Total equity contracts 34,456 (29,480) 4,976 40,772 (c) (34,522) (c) 6,250
Commodity contracts:
OTC 16,953 (6,256) 10,697 25,129 (13,211) 11,918
OTC–cleared —— — —— —
Exchange-traded(a) 9,374 (9,322) 52 18,486 (15,344) 3,142
Total commodity contracts 26,327 (15,578) 10,749 43,615 (28,555) 15,060
Derivative payables with appropriate legal opinions $ 930,717 $ (890,122) (b) $ 40,595 $ 1,291,703 (c) $(1,239,657) (b)(c) $ 52,046
Derivative payables where an appropriate legal
opinion has not been either sought or obtained 12,195 12,195 19,070 19,070
Total derivative payables recognized on the
Consolidated balance sheets $ 942,912 $ 52,790 $ 1,310,773 (c) $ 71,116
(a) Exchange-traded derivative balances that relate to futures contracts are settled daily.
(b) Included cash collateral netted of $61.6 billion and $64.2 billion related to OTC and OTC-cleared derivatives at December 31, 2015, and 2014,
respectively.
(c) The prior period amounts have been revised to conform with the current period presentation. These revisions had no impact on Firm’s Consolidated
balance sheets or its results of operations.
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 consists of non-cash
financial instruments (generally U.S. government and
agency securities and other Group of Seven Nations (“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.