Derivative Instruments

3 Months Ended

Mar. 31, 2015

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative instruments

Derivative instruments

JPMorgan Chase makes markets in derivatives for customers and also uses derivatives to hedge or manage its own risk exposures. For a further discussion of the Firm’s use of and accounting policies regarding derivative instruments, see Note 6 of JPMorgan Chase’s 2014 Annual Report.

The Firm’s disclosures are based on the accounting treatment and purpose of these derivatives. A limited number of the Firm’s derivatives are designated in hedge accounting relationships and are disclosed according to the type of hedge (fair value hedge, cash flow hedge, or net investment hedge). Derivatives not designated in hedge accounting relationships include certain derivatives that are used to manage certain risks associated with specified assets or liabilities (“specified risk management” positions) as well as derivatives used in the Firm’s market-making businesses or for other purposes.

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	10-Q page reference
Manage specifically identified risk exposures in qualifying hedge accounting relationships:
◦ Interest rate	Hedge fixed rate assets and liabilities	Fair value hedge	Corporate	97
◦ Interest rate	Hedge floating rate assets and liabilities	Cash flow hedge	Corporate	98
◦  Foreign exchange	Hedge foreign currency-denominated assets and liabilities	Fair value hedge	Corporate	97
◦  Foreign exchange	Hedge forecasted revenue and expense	Cash flow hedge	Corporate	98
◦  Foreign exchange	Hedge the value of the Firm’s investments in non-U.S. subsidiaries	Net investment hedge	Corporate	99
◦  Commodity	Hedge commodity inventory	Fair value hedge	CIB	97
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	99
◦  Credit	Manage the credit risk of wholesale lending exposures	Specified risk management	CIB	99
◦  Commodity	Manage the risk of certain commodities-related contracts and investments	Specified risk management	CIB	99
◦ Interest rate and foreign exchange	Manage the risk of certain other specified assets and liabilities	Specified risk management	Corporate	99
Market-making derivatives and other activities:
◦  Various	Market-making and related risk management	Market-making and other	CIB	99
◦  Various	Other derivatives	Market-making and other	CIB, Corporate	99

Notional amount of derivative contracts

The following table summarizes the notional amount of derivative contracts outstanding as of March 31, 2015, and December 31, 2014.

	Notional amounts(b)
(in billions)	March 31, 2015		December 31, 2014
Interest rate contracts
Swaps	$	24,446	$	29,734
Futures and forwards	9,572		10,189
Written options	3,618		3,903
Purchased options	3,968		4,259
Total interest rate contracts	41,604		48,085
Credit derivatives(a)	3,991		4,249
Foreign exchange contracts
Cross-currency swaps	3,184		3,346
Spot, futures and forwards	4,809		4,669
Written options	811		790
Purchased options	803		780
Total foreign exchange contracts	9,607		9,585
Equity contracts
Swaps	199		206
Futures and forwards	69		50
Written options	416		432
Purchased options	363		375
Total equity contracts	1,047		1,063
Commodity contracts
Swaps	126		126
Spot, futures and forwards	178		193
Written options	180		181
Purchased options	190		180
Total commodity contracts	674		680
Total derivative notional amounts	$	56,923	$	63,662

(a) For more information on volumes and types of credit derivative contracts, see the Credit derivatives discussion on pages 100–101 of this Note.

(b) Represents the sum of gross long and gross short third-party notional derivative contracts.

While the notional amounts disclosed above give an indication of the volume of the Firm’s derivatives activity, the notional amounts significantly exceed, in the Firm’s view, the possible losses that could arise from such transactions. For most derivative transactions, the notional amount is not exchanged; it is used simply as a reference to calculate payments.

Impact of derivatives on the Consolidated Balance Sheets

The following table summarizes information on derivative receivables and payables (before and after netting adjustments) that are reflected on the Firm’s Consolidated balance sheets as of March 31, 2015 and December 31, 2014, by accounting designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships or not) and contract type.

Free-standing derivative receivables and payables(a)
	Gross derivative receivables										Gross derivative payables
March 31, 2015 (in millions)	Not designated as hedges			Designated as hedges		Total derivative receivables			Net derivative receivables(b)		Not designated as hedges			Designated as hedges		Total derivative payables			Net derivative payables(b)
Trading assets and liabilities
Interest rate	$	892,648		$	6,433	$	899,081		$	36,148	$	862,785		$	3,238	$	866,023		$	17,890
Credit	63,336			—		63,336			1,528		62,425			—		62,425			1,220
Foreign exchange	224,698			3,259		227,957			25,696		241,606			1,173		242,779			27,094
Equity	45,889			—		45,889			7,410		52,694			—		52,694			13,190
Commodity	38,849			339		39,188			10,792		41,892			68		41,960			14,442
Total fair value of trading assets and liabilities	$	1,265,420		$	10,031	$	1,275,451		$	81,574	$	1,261,402		$	4,479	$	1,265,881		$	73,836
	Gross derivative receivables										Gross derivative payables
December 31, 2014 (in millions)	Not designated as hedges			Designated as hedges		Total derivative receivables			Net derivative receivables(b)		Not designated as hedges			Designated as hedges		Total derivative payables			Net derivative payables(b)
Trading assets and liabilities
Interest rate	$	944,885	(c)	$	5,372	$	950,257	(c)	$	33,725	$	915,368	(c)	$	3,011	$	918,379	(c)	$	17,745
Credit	76,842			—		76,842			1,838		75,895			—		75,895			1,593
Foreign exchange	211,537		(c)	3,650		215,187		(c)	21,253		223,988		(c)	626		224,614		(c)	22,970
Equity	42,489		(c)	—		42,489		(c)	8,177		46,262		(c)	—		46,262		(c)	11,740
Commodity	43,151			502		43,653			13,982		45,455			168		45,623			17,068
Total fair value of trading assets and liabilities	$	1,318,904	(c)	$	9,524	$	1,328,428	(c)	$	78,975	$	1,306,968	(c)	$	3,805	$	1,310,773	(c)	$	71,116

(a) Balances exclude structured notes for which the fair value option has been elected. See Note 4 for further information.

(b) As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral receivables and payables when a legally enforceable master netting agreement exists.

(c) The prior period amounts have been revised to conform with the current period presentation. These revisions had no impact on the Firm's Consolidated balance sheets or its results of operations.

The following table presents, as of March 31, 2015 and December 31, 2014, the gross and net derivative receivables by contract and settlement type. Derivative receivables have been netted on the Consolidated balance sheets against derivative payables and cash collateral payables to 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 receivables are not eligible under U.S. GAAP for netting on the Consolidated balance sheets, and are shown separately in the table below.

	March 31, 2015								December 31, 2014
(in millions)	Gross derivative receivables		Amounts netted on the Consolidated balance sheets				Net derivative receivables		Gross derivative receivables			Amounts netted on the Consolidated balance sheets				Net derivative receivables
U.S. GAAP nettable derivative receivables
Interest rate contracts:
OTC	$	557,852	$	(528,790	)		$	29,062	$	542,107	(c)	$	(514,914	)	(c)	$	27,193
OTC–cleared	334,188		(334,143		)		45		401,656			(401,618		)		38
Exchange-traded(a)	—		—				—		—			—				—
Total interest rate contracts	892,040		(862,933		)		29,107		943,763		(c)	(916,532		)	(c)	27,231
Credit contracts:
OTC	51,432		(50,822		)		610		66,636			(65,720		)		916
OTC–cleared	11,017		(10,986		)		31		9,320			(9,284		)		36
Total credit contracts	62,449		(61,808		)		641		75,956			(75,004		)		952
Foreign exchange contracts:
OTC	220,375		(202,176		)		18,199		208,803		(c)	(193,900		)	(c)	14,903
OTC–cleared	85		(85		)		—		36			(34		)		2
Exchange-traded(a)	—		—				—		—			—				—
Total foreign exchange contracts	220,460		(202,261		)		18,199		208,839		(c)	(193,934		)	(c)	14,905
Equity contracts:
OTC	25,632		(24,554		)		1,078		23,258			(22,826		)		432
OTC–cleared	—		—				—		—			—				—
Exchange-traded(a)	16,516		(13,925		)		2,591		13,840		(c)	(11,486		)	(c)	2,354
Total equity contracts	42,148		(38,479		)		3,669		37,098		(c)	(34,312		)	(c)	2,786
Commodity contracts:
OTC	19,526		(10,757		)		8,769		22,555			(14,327		)		8,228
OTC–cleared	—		—				—		—			—				—
Exchange-traded(a)	18,501		(17,639		)		862		19,500			(15,344		)		4,156
Total commodity contracts	38,027		(28,396		)		9,631		42,055			(29,671		)		12,384
Derivative receivables with appropriate legal opinion	$	1,255,124	$	(1,193,877	)	(b)	$	61,247	$	1,307,711	(c)	$	(1,249,453	)	(b)(c)	$	58,258
Derivative receivables where an appropriate legal opinion has not been either sought or obtained	20,327						20,327		20,717							20,717
Total derivative receivables recognized on the Consolidated balance sheets	$	1,275,451					$	81,574	$	1,328,428	(c)					$	78,975

(a) Exchange-traded derivative amounts that relate to futures contracts are settled daily.

(b) Included cash collateral netted of $78.2 billion and $74.0 billion at March 31, 2015 and December 31, 2014, respectively.

(c) The prior period amounts have been revised to conform with the current period presentation with a corresponding impact to the table below. These revisions had no impact on the Firm's Consolidated balance sheets or its results of operations.

The following table presents, as of March 31, 2015 and December 31, 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.

	March 31, 2015								December 31, 2014
(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	$	533,216	$	(518,203	)		$	15,013	$	515,904	(c)	$	(503,384	)	(c)	$	12,520
OTC–cleared	331,073		(329,930		)		1,143		398,518			(397,250		)		1,268
Exchange-traded(a)	—		—				—		—			—				—
Total interest rate contracts	864,289		(848,133		)		16,156		914,422		(c)	(900,634		)	(c)	13,788
Credit contracts:
OTC	50,278		(50,021		)		257		65,432			(64,904		)		528
OTC–cleared	11,184		(11,184		)		—		9,398			(9,398		)		—
Total credit contracts	61,462		(61,205		)		257		74,830			(74,302		)		528
Foreign exchange contracts:
OTC	236,193		(215,560		)		20,633		217,998		(c)	(201,578		)	(c)	16,420
OTC–cleared	125		(125		)		—		66			(66		)		—
Exchange-traded(a)	—		—				—		—			—				—
Total foreign exchange contracts	236,318		(215,685		)		20,633		218,064		(c)	(201,644		)	(c)	16,420
Equity contracts:
OTC	32,341		(25,579		)		6,762		27,908			(23,036		)		4,872
OTC–cleared	—		—				—		—			—				—
Exchange-traded(a)	15,097		(13,925		)		1,172		12,864		(c)	(11,486		)	(c)	1,378
Total equity contracts	47,438		(39,504		)		7,934		40,772		(c)	(34,522		)	(c)	6,250
Commodity contracts:
OTC	22,060		(9,879		)		12,181		25,129			(13,211		)		11,918
OTC–cleared	—		—				—		—			—				—
Exchange-traded(a)	17,933		(17,639		)		294		18,486			(15,344		)		3,142
Total commodity contracts	39,993		(27,518		)		12,475		43,615			(28,555		)		15,060
Derivative payables with appropriate legal opinions	$	1,249,500	$	(1,192,045	)	(b)	$	57,455	$	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	16,381						16,381		19,070							19,070
Total derivative payables recognized on the Consolidated balance sheets	$	1,265,881					$	73,836	$	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 $76.3 billion and $64.2 billion related to OTC and OTC-cleared derivatives at March 31, 2015 and December 31, 2014, respectively.

(c) The prior period amounts have been revised to conform with the current period presentation with a corresponding impact to the table above. These revisions had no impact on the 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 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.

The following tables present information regarding certain financial instrument collateral received and transferred as of March 31, 2015 and December 31, 2014, that is not eligible for net presentation under U.S. GAAP. The collateral included in these tables relates only to the derivative instruments for which appropriate legal opinions have been obtained; excluded are (i) additional collateral that exceeds the fair value exposure and (ii) all collateral related to derivative instruments where an appropriate legal opinion has not been either sought or obtained.

Derivative receivable collateral
	March 31, 2015								December 31, 2014
(in millions)	Net derivative receivables		Collateral not nettable on the Consolidated balance sheets				Net exposure		Net derivative receivables		Collateral not nettable on the Consolidated balance sheets				Net exposure
Derivative receivables with appropriate legal opinions	$	61,247	$	(15,630	)	(a)	$	45,617	$	58,258	$	(16,194	)	(a)	$	42,064

Derivative payable collateral(b)
	March 31, 2015								December 31, 2014
(in millions)	Net derivative payables		Collateral not nettable on the Consolidated balance sheets				Net amount(c)		Net derivative payables		Collateral not nettable on the Consolidated balance sheets				Net amount(c)
Derivative payables with appropriate legal opinions	$	57,455	$	(12,983	)	(a)	$	44,472	$	52,046	$	(10,505	)	(a)	$	41,541

(a) Represents liquid security collateral as well as cash collateral held at third party custodians. For some counterparties, the collateral amounts of financial instruments may exceed the derivative receivables and derivative payables balances. Where this is the case, the total amount reported is limited to the net derivative receivables and net derivative payables balances with that counterparty.

(b) Derivative payable collateral relates only to OTC and OTC-cleared derivative instruments. Amounts exclude collateral transferred related to exchange-traded derivative instruments.

(c) Net amount represents exposure of counterparties to the Firm.

Liquidity risk and credit-related contingent features

For a more detailed discussion of liquidity risk and credit-related contingent features related to the Firm’s derivative contracts, see Note 6 of JPMorgan Chase’s 2014 Annual Report.

The following table shows the aggregate fair value of net derivative payables related to OTC and OTC-cleared derivatives that contain contingent collateral or termination features that may be triggered upon a ratings downgrade, and the associated collateral the Firm has posted in the normal course of business, at March 31, 2015, and December 31, 2014.

OTC and OTC-cleared derivative payables containing downgrade triggers
(in millions)	March 31, 2015		December 31, 2014
Aggregate fair value of net derivative payables	$	37,439	$	32,303
Collateral posted	31,256		27,585

The following table shows the impact of a single-notch and two-notch downgrade of the long-term issuer ratings of JPMorgan Chase & Co. and its subsidiaries, predominantly JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank, N.A.”), at March 31, 2015 and December 31, 2014, related to OTC and OTC-cleared derivative contracts with contingent collateral or termination features that may be triggered upon a ratings downgrade. Derivatives contracts generally require additional collateral to be posted or terminations to be triggered when the predefined threshold rating is breached. A downgrade by a single rating agency that does not result in a rating lower than a preexisting corresponding rating provided by another major rating agency will generally not result in additional collateral, except in certain instances in which additional initial margin may be required upon a ratings downgrade, or in termination payments requirements. The liquidity impact in the table is calculated based upon a downgrade below the lowest current rating of the rating agencies referred to in the derivative contract.

Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives
	March 31, 2015				December 31, 2014
(in millions)	Single-notch downgrade		Two-notch downgrade		Single-notch downgrade		Two-notch downgrade
Amount of additional collateral to be posted upon downgrade(a)	$	1,037	$	3,750	$	1,046	$	3,331
Amount required to settle contracts with termination triggers upon downgrade(b)	291		1,144		366		1,388

(a) Includes the additional collateral to be posted for initial margin.

(b) Amounts represent fair values of derivative payables, and do not reflect collateral posted.

Derivatives executed in contemplation of a sale of the underlying financial asset

In certain instances the Firm enters into transactions where it transfers financial assets but maintains the economic exposure to the transferred assets by entering into a derivative with the same counterparty in contemplation of the initial transfer. The Firm generally accounts for such transfers as collateralized financing transactions as described in Note 12, but in limited circumstances they may qualify to be accounted for as a sale and a derivative under U.S. GAAP. The amount of such transfers accounted for as a sale where the associated derivative was outstanding at March 31, 2015 was not material.

Impact of derivatives on the Consolidated statements of income

The following tables provide information related to gains and losses recorded on derivatives based on their hedge accounting designation or purpose.

Fair value hedge gains and losses

The following tables present derivative instruments, by contract type, used in fair value hedge accounting relationships, as well as pretax gains/(losses) recorded on such derivatives and the related hedged items for the three months ended March 31, 2015, and 2014, respectively.

	Gains/(losses) recorded in income									Income statement impact due to:
Three months ended March 31, 2015 (in millions)	Derivatives			Hedged items			Total income statement impact			Hedge ineffectiveness(d)			Excluded components(e)
Contract type
Interest rate(a)	$	606		$	(248	)	$	358		$	17		$	341
Foreign exchange(b)	6,475			(6,459		)	16			—			16
Commodity(c)	322			(308		)	14			(6		)	20
Total	$	7,403		$	(7,015	)	$	388		$	11		$	377
	Gains/(losses) recorded in income									Income statement impact due to:
Three months ended March 31, 2014 (in millions)	Derivatives			Hedged items			Total income statement impact			Hedge ineffectiveness(d)			Excluded components(e)
Contract type
Interest rate(a)	$	743		$	(407	)	$	336		$	29		$	307
Foreign exchange(b)	(398		)	324			(74		)	—			(74		)
Commodity(c)	180			(138		)	42			15			27
Total	$	525		$	(221	)	$	304		$	44		$	260

(a) Primarily consists of hedges of the benchmark (e.g., London Interbank Offered Rate (“LIBOR”)) interest rate risk of fixed-rate long-term debt and AFS securities. Gains and losses were recorded in net interest income.

(b) Primarily consists of hedges of the foreign currency risk of long-term debt and AFS securities for changes in spot foreign currency rates. Gains and losses related to the derivatives and the hedged items, due to changes in foreign currency rates, were recorded in principal transactions revenue and net interest income.

(c) Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or market (market approximates fair value). Gains and losses were recorded in principal transactions revenue.

(d) Hedge ineffectiveness is the amount by which the gain or loss on the designated derivative instrument does not exactly offset the gain or loss on the hedged item attributable to the hedged risk.

(e) The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such as forward points on foreign exchange forward contracts and time values.

Cash flow hedge gains and losses

The following tables present derivative instruments, by contract type, used in cash flow hedge accounting relationships, and the pretax gains/(losses) recorded on such derivatives, for the three months ended March 31, 2015, and 2014, respectively.

	Gains/(losses) recorded in income and other comprehensive income/(loss)
Three months ended March 31, 2015 (in millions)	Derivatives – effective portion reclassified from AOCI to income			Hedge ineffectiveness recorded directly in income(c)		Total income statement impact			Derivatives – effective portion recorded in OCI			Total change in OCI for period
Contract type
Interest rate(a)	$	(149	)	$	—	$	(149	)	$	3		$	152
Foreign exchange(b)	(26		)	—		(26		)	(52		)	(26		)
Total	$	(175	)	$	—	$	(175	)	$	(49	)	$	126

	Gains/(losses) recorded in income and other comprehensive income/(loss)
Three months ended March 31, 2014 (in millions)	Derivatives – effective portion reclassified from AOCI to income			Hedge ineffectiveness recorded directly in income(c)		Total income statement impact			Derivatives – effective portion recorded in OCI		Total change in OCI for period
Contract type
Interest rate(a)	$	(26	)	$	—	$	(26	)	$	63	$	89
Foreign exchange(b)	(1		)	—		(1		)	9		10
Total	$	(27	)	$	—	$	(27	)	$	72	$	99

(a) Primarily consists of benchmark interest rate hedges of LIBOR-indexed floating-rate assets and floating-rate liabilities. Gains and losses were recorded in net interest income, and for forecasted transactions that the Firm determined during the three months ended March 31, 2015, were probable of not occurring, in other income.

(b) Primarily consists of hedges of the foreign currency risk of non-U.S. dollar-denominated revenue and expense. The income statement classification of gains and losses follows the hedged item – primarily noninterest revenue and compensation expense.

(c) Hedge ineffectiveness is the amount by which the cumulative gain or loss on the designated derivative instrument exceeds the present value of the cumulative expected change in cash flows on the hedged item attributable to the hedged risk.

In February, 2015, the Firm announced its plan to reduce non-operating deposits by up to $100 billion by the end of 2015. A portion of these deposits had been designated in cash flow hedges of forecasted interest payments. In the first quarter of 2015, the Firm reclassified approximately $150 million of net losses from accumulated other comprehensive income (“AOCI”) to other income because the Firm determined that it is probable that the forecasted interest payment cash flows will not occur. The Firm did not experience any forecasted transactions that failed to occur for the three months ended March 31, 2014.

Over the next 12 months, the Firm expects that $4 million (after-tax) of net losses recorded in AOCI at March 31, 2015, related to cash flow hedges will be recognized in income. The maximum length of time over which forecasted transactions are hedged is 9 years, and such transactions primarily relate to core lending and borrowing activities.

Net investment hedge gains and losses

The following table presents hedging instruments, by contract type, that were used in net investment hedge accounting relationships, and the pretax gains/(losses) recorded on such instruments for the three months ended March 31, 2015, and 2014.

	Gains/(losses) recorded in income and other comprehensive income/(loss)
	2015						2014
Three months ended March 31 (in millions)	Excluded components recorded directly in income(a)				Effective portion recorded in OCI		Excluded components recorded directly in income(a)				Effective portion recorded in OCI
Foreign exchange derivatives		$	(99	)	$	993		$	(105	)	$	(154	)

(a)Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points on foreign exchange forward contracts. Amounts related to excluded components are recorded in other income. The Firm measures the ineffectiveness of net investment hedge accounting relationships based on changes in spot foreign currency rates, and therefore there was no significant ineffectiveness for net investment hedge accounting relationships during the three months ended March 31, 2015, and 2014.

Gains and losses on derivatives used for specified risk management purposes

The following table presents pretax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from the mortgage pipeline, warehouse loans, MSRs, wholesale lending exposures, AFS securities, foreign currency-denominated liabilities, and commodities-related contracts and investments.

	Derivatives gains/(losses) recorded in income
	Three months ended March 31,
(in millions)	2015			2014
Contract type
Interest rate(a)	$	683		$	518
Credit(b)	(14		)	(17		)
Foreign exchange(c)	(12		)	—
Commodity(d)	(36		)	183
Total	$	621		$	684

(a) Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in the mortgage pipeline, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income.

(b) Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm’s wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue.

(c) Primarily relates to hedges of the foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue.

(d) Primarily relates to commodity derivatives used to mitigate energy price risk associated with energy-related contracts and investments. Gains and losses were recorded in principal transactions revenue.

Gains and losses on derivatives related to market-making activities and other derivatives

The Firm makes markets in derivatives in order to meet the needs of customers and uses derivatives to manage certain risks associated with net open risk positions from the Firm’s market-making activities, including the counterparty credit risk arising from derivative receivables. All derivatives not included in the hedge accounting or specified risk management categories above are included in this category. Gains and losses on these derivatives are primarily recorded in principal transactions revenue. See Note 6 for information on principal transactions revenue.

Credit derivatives

For a more detailed discussion of credit derivatives, see Note 6 of JPMorgan Chase’s 2014 Annual Report. The Firm does not use notional amounts of credit derivatives as the primary measure of risk management for such derivatives, because the notional amount does not take into account the probability of the occurrence of a credit event, the recovery value of the reference obligation, or related cash instruments and economic hedges, each of which reduces, in the Firm’s view, the risks associated with such derivatives.

Total credit derivatives and credit-related notes

	Maximum payout/Notional amount
March 31, 2015 (in millions)	Protection sold			Protection purchased with identical underlyings(b)			Net protection (sold)/purchased(c)			Other protection purchased(d)
Credit derivatives
Credit default swaps	$	(1,923,729	)		$	1,950,481	$	26,752		$	17,202
Other credit derivatives(a)	(46,485		)		33,036		(13,449		)	20,114
Total credit derivatives	(1,970,214		)		1,983,517		13,303			37,316
Credit-related notes	(20		)		—		(20		)	4,342
Total	$	(1,970,234	)		$	1,983,517	$	13,283		$	41,658
	Maximum payout/Notional amount
December 31, 2014 (in millions)	Protection sold			Protection purchased with identical underlyings(b)			Net protection (sold)/purchased(c)			Other protection purchased(d)
Credit derivatives
Credit default swaps	$	(2,056,982	)		$	2,078,096	$	21,114		$	18,631
Other credit derivatives(a)	(43,281		)		32,048		(11,233		)	19,475
Total credit derivatives	(2,100,263		)		2,110,144		9,881			38,106
Credit-related notes	(40		)		—		(40		)	3,704
Total	$	(2,100,303	)		$	2,110,144	$	9,841		$	41,810

(a) Other credit derivatives predominantly consists of credit swap options.

(b) Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may be greater or lower than the notional amount of protection sold.

(c) Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the seller of protection pays to the buyer of protection in determining settlement value.

(d) Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any protection on the identical reference instrument.

The following tables summarize the notional amounts by the ratings and maturity profile, and the total fair value, of credit derivatives and credit-related notes as of March 31, 2015, and December 31, 2014, where JPMorgan Chase is the seller of protection. The maturity profile is based on the remaining contractual maturity of the credit derivative contracts. The ratings profile is based on the rating of the reference entity on which the credit derivative contract is based. The ratings and maturity profile of credit derivatives and credit-related notes where JPMorgan Chase is the purchaser of protection are comparable to the profile reflected below.

Protection sold – credit derivatives and credit-related notes ratings(a)/maturity profile
March 31, 2015 (in millions)	<1 year			1–5 years			>5 years			Total notional amount			Fair value of receivables(b)		Fair value of payables(b)			Net fair value
Risk rating of reference entity
Investment-grade	$	(301,079	)	$	(1,012,598	)	$	(101,819	)	$	(1,415,496	)	$	23,831	$	(3,289	)	$	20,542
Noninvestment-grade	(140,357		)	(381,359		)	(33,022		)	(554,738		)	20,453		(14,374		)	6,079
Total	$	(441,436	)	$	(1,393,957	)	$	(134,841	)	$	(1,970,234	)	$	44,284	$	(17,663	)	$	26,621

December 31, 2014 (in millions)	<1 year			1–5 years			>5 years			Total notional amount			Fair value of receivables(b)		Fair value of payables(b)			Net fair value
Risk rating of reference entity
Investment-grade	$	(323,398	)	$	(1,118,293	)	$	(79,486	)	$	(1,521,177	)	$	25,767	$	(6,314	)	$	19,453
Noninvestment-grade	(157,281		)	(396,798		)	(25,047		)	(579,126		)	20,677		(22,455		)	(1,778		)
Total	$	(480,679	)	$	(1,515,091	)	$	(104,533	)	$	(2,100,303	)	$	46,444	$	(28,769	)	$	17,675

(a) The ratings scale is primarily based on external credit ratings defined by S&P and Moody’s.

(b) Amounts are shown on a gross basis, before the benefit of legally enforceable master netting agreements and cash collateral received by the Firm.