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Net income/(expense) from financial instruments measured at fair value through profit and loss
 12 Months Ended
Dec. 31, 2018
Analysis of income and expense [abstract]  
Net income/(expense) from financial instruments measured at fair value through profit and loss
3
Net income/(expense) from financial instruments measured at fair value through profit or
loss

 
 
2018

2017

2016

 
Footnotes
$m

$m

$m

Net income/(expense) arising on:
 
 
 
 
Net trading activities
1
6,982

8,236

7,473

Other instruments managed on a fair value basis
1
2,549

190

48

Net income from financial instruments held for trading or managed on a fair value basis
2
9,531

8,426

7,521

Financial assets held to meet liabilities under insurance and investment contracts

 
(1,585
)
3,211

1,480

Liabilities to customers under investment contracts
 
97

(375
)
(218
)
Net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss
 
(1,488
)
2,836

1,262

Changes in own credit spread on long-term debt
3
—

—

(1,793
)
Derivatives managed in conjunction with HSBC’s issued debt securities
 
(626
)
(343
)
(1,604
)
Other changes in fair value
 
529

498

1,400

Changes in fair value of long-term debt and related derivatives
2
(97
)
155

(1,997
)
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss
 
695

N/A

N/A

Year ended 31 Dec
 
8,641

11,417

6,786

1 At 1 January 2018 we changed our accounting policy for financial liabilities that contain both deposit and derivative components. As a result, net income from these instruments is reported in ‘Other instruments managed on a fair value basis’ rather than ‘Trading activities’. Comparative periods have not been re-presented. Refer to Note 1 ‘Basis of preparation and accounting policies’ for further details.
2
Prior to 2018, foreign exchange exposure on some financial instruments designated at fair value was presented in the same line in the income statement as the underlying fair value movement on these instruments. In 2018, we grouped the presentation of the entire effect of foreign exchange exposure in profit or loss and presented it within ‘Net trading activities’ in ‘Net income from financial instruments held for trading or managed on a fair value basis’. Comparative data has been re-presented. There is no net impact on Total operating income and the impact on ‘Changes in fair value of long-term debt and related derivatives’ is $(517)m in 2017 and $1,978m in 2016.
3
From 1 January 2017, HSBC Holdings plc adopted, in its consolidated financial statements, the requirements of IFRS 9 ‘Financial Instruments’ relating to the presentation of gains and losses on financial liabilities designated at fair value. As a result, changes in fair value attributable to changes in own credit risk are presented in other comprehensive income with the remaining effect presented in profit or loss.
HSBC Holdings
 
 
2018

2017

2016

 
 
$m

$m

$m

Net income/(expense) arising on:
 
 
 
 
- trading activities
 
(176
)
(392
)
119

- other instruments managed at on a fair value basis
 
421

211

—

Net income from financial instruments held for trading or managed on a fair value basis
 
245

(181
)
119

– derivatives managed in conjunction with HSBC Holdings issued debt securities
 
(337
)
292

(642
)
– other changes in fair value
 
260

(189
)
593

Changes in fair value of long-term debt and related derivatives
 
(77
)
103

(49
)
Changes in fair value of other financial instruments mandatorily measured at fair value through profit or loss
 
43

—

—

Year ended 31 Dec
 
211

(78
)
70