Derivative Instruments

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative instruments

Derivative contracts derive their value from underlying asset prices, indices, reference rates, other inputs or a combination of these factors and may expose counterparties to risks and rewards of an underlying asset or liability without having to initially invest in, own or exchange the asset or liability. JPMorgan Chase makes markets in derivatives for clients and also uses derivatives to hedge or manage its own risk exposures. Predominantly all of the Firm’s derivatives are entered into for market-making or risk management purposes.

Market-making derivatives

The majority of the Firm’s derivatives are entered into for market-making purposes. Clients use derivatives to mitigate or modify interest rate, credit, foreign exchange, equity and commodity risks. The Firm actively manages the risks from its exposure to these derivatives by entering into other derivative transactions or by purchasing or selling other financial instruments that partially or fully offset the exposure from client derivatives.

Risk management derivatives

The Firm manages certain market and credit risk exposures using derivative instruments, including derivatives in hedge accounting relationships and other derivatives that are used to manage risks associated with specified assets and liabilities.

Interest rate contracts are used to minimize fluctuations in earnings that are caused by changes in interest rates. Fixed-rate assets and liabilities appreciate or depreciate in market value as interest rates change. Similarly, interest income and expense increases or decreases as a result of variable-rate assets and liabilities resetting to current market rates, and as a result of the repayment and subsequent origination or issuance of fixed-rate assets and liabilities at current market rates. Gains or losses on the derivative instruments that are related to such assets and liabilities are expected to substantially offset this variability in earnings. The Firm generally uses interest rate swaps, forwards and futures to manage the impact of interest rate fluctuations on earnings.

Foreign currency forward contracts are used to manage the foreign exchange risk associated with certain foreign currency–denominated (i.e., non-U.S. dollar) assets and liabilities and forecasted transactions, as well as the Firm’s net investments in certain non-U.S. subsidiaries or branches whose functional currencies are not the U.S. dollar. As a result of fluctuations in foreign currencies, the U.S. dollar–equivalent values of the foreign currency–denominated assets and liabilities or the forecasted revenues or expenses increase or decrease. Gains or losses on the derivative instruments related to these foreign currency–denominated assets or liabilities, or forecasted transactions, are expected to substantially offset this variability.

Commodities contracts are used to manage the price risk of certain commodities inventories. Gains or losses on these derivative instruments are expected to substantially offset the depreciation or appreciation of the related inventory.

Credit derivatives are used to manage the counterparty credit risk associated with loans and lending-related commitments. Credit derivatives compensate the purchaser when the entity referenced in the contract experiences a credit event, such as bankruptcy or a failure to pay an obligation when due. Credit derivatives primarily consist of CDS. For a further discussion of credit derivatives, see the discussion in the Credit derivatives section onpages 184–186of this Note.

For more information about risk management derivatives, see the risk management derivatives gains and losses table onpage 184of this Note, and the hedge accounting gains and losses tables onpages 182–184of this Note.

Derivative counterparties and settlement types

The Firm enters into OTC derivatives, which are negotiated and settled bilaterally with the derivative counterparty. The Firm also enters into, as principal, certain ETD such as futures and options, and OTC-cleared derivative contracts with CCPs. ETD contracts are generally standardized contracts traded on an exchange and cleared by the CCP, which is the Firm’s counterparty from the inception of the transactions. OTC-cleared derivatives are traded on a bilateral basis and then novated to the CCP for clearing.

Derivative clearing services

The Firm provides clearing services for clients where the Firm acts as a clearing member with respect to certain derivative exchanges and clearing houses. The Firm does not reflect the clients’ derivative contracts in its Consolidated Financial Statements. For further information on the Firm’s clearing services, see Note 29.

Accounting for derivatives

All free-standing derivatives that the Firm executes for its own account are required to be recorded on the Consolidated balance sheets at fair value.

As permitted under U.S. GAAP, the Firm nets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting agreement exists between the Firm and the derivative counterparty. For further discussion of the offsetting of assets and liabilities, see Note 1. The accounting for changes in value of a derivative depends on whether or not the transaction has been designated and qualifies for hedge accounting. Derivatives that are not designated as hedges are reported and measured at fair value through earnings. The tabular disclosures onpages 178–184of this Note provide additional information on the amount of, and reporting for, derivative assets, liabilities, gains and losses. For further discussion of derivatives embedded in structured notes, see Notes 3 and 4.

Derivatives designated as hedges

The Firm applies hedge accounting to certain derivatives executed for risk management purposes – generally interest rate, foreign exchange and commodity derivatives. However, JPMorgan Chase does not seek to apply hedge accounting to all of the derivatives involved in the Firm’s risk management activities. For example, the Firm does not apply hedge accounting to purchased CDS used to manage the credit risk of loans and lending-related commitments, because of the difficulties in qualifying such contracts as hedges. For the same reason, the Firm does not apply hedge accounting to certain interest rate, foreign exchange, and commodity derivatives used for risk management purposes.

To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, for a derivative to be designated as a hedge, the risk management objective and strategy must be documented. Hedge documentation must identify the derivative hedging instrument, the asset or liability or forecasted transaction and type of risk to be hedged, and how the effectiveness of the derivative is assessed prospectively and retrospectively. To assess effectiveness, the Firm uses statistical methods such as regression analysis, as well as nonstatistical methods including dollar-value comparisons of the change in the fair value of the derivative to the change in the fair value or cash flows of the hedged item. The extent to which a derivative has been, and is expected to continue to be, effective at offsetting changes in the fair value or cash flows of the hedged item must be assessed and documented at least quarterly. Any hedge ineffectiveness (i.e., the amount by which the gain or loss on the designated derivative instrument does not exactly offset the change in the hedged item attributable to the hedged risk) must be reported in current-period earnings. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued.

There are three types of hedge accounting designations: fair value hedges, cash flow hedges and net investment hedges. JPMorgan Chase uses fair value hedges primarily to hedge fixed-rate long-term debt, AFS securities and certain commodities inventories. For qualifying fair value hedges, the changes in the fair value of the derivative, and in the value of the hedged item for the risk being hedged, are recognized in earnings. If the hedge relationship is terminated, then the adjustment to the hedged item continues to be reported as part of the basis of the hedged item, and for benchmark interest rate hedges, is amortized to earnings as a yield adjustment. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item – primarily net interest income and principal transactions revenue.

JPMorgan Chase uses cash flow hedges primarily to hedge the exposure to variability in forecasted cash flows from floating-rate assets and liabilities and foreign currency–denominated revenue and expense. For qualifying cash flow hedges, the effective portion of the change in the fair value of the derivative is recorded in OCI and recognized in the Consolidated statements of income when the hedged cash flows affect earnings. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item – primarily interest income, interest expense, noninterest revenue and compensation expense. The ineffective portions of cash flow hedges are immediately recognized in earnings. If the hedge relationship is terminated, then the value of the derivative recorded in AOCI is recognized in earnings when the cash flows that were hedged affect earnings. For hedge relationships that are discontinued because a forecasted transaction is not expected to occur according to the original hedge forecast, any related derivative values recorded in AOCI are immediately recognized in earnings.

JPMorgan Chase uses net investment hedges to protect the value of the Firm’s net investments in certain non-U.S. subsidiaries or branches whose functional currencies are not the U.S. dollar. For foreign currency qualifying net investment hedges, changes in the fair value of the derivatives are recorded in the translation adjustments account within AOCI.

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:
◦ Interest rate	Hedge fixed rate assets and liabilities	Fair value hedge	Corporate	182
◦ Interest rate	Hedge floating-rate assets and liabilities	Cash flow hedge	Corporate	183
◦  Foreign exchange	Hedge foreign currency-denominated assets and liabilities	Fair value hedge	Corporate	182
◦  Foreign exchange	Hedge forecasted revenue and expense	Cash flow hedge	Corporate	183
◦  Foreign exchange	Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entities	Net investment hedge	Corporate	184
◦  Commodity	Hedge commodity inventory	Fair value hedge	CIB	182
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	184
◦  Credit	Manage the credit risk of wholesale lending exposures	Specified risk management	CIB	184
◦  Commodity	Manage the risk of certain commodities-related contracts and investments	Specified risk management	CIB	184
◦  Interest rate and foreign exchange	Manage the risk of certain other specified assets and liabilities	Specified risk management	Corporate	184
Market-making derivatives and other activities:
◦  Various	Market-making and related risk management	Market-making and other	CIB	184
◦  Various	Other derivatives	Market-making and other	CIB, Corporate	184

Notional amount of derivative contracts

The following table summarizes the notional amount of derivative contracts outstanding as ofDecember 31, 2016 and 2015.

	Notional amounts(b)
December 31, (in billions)	2016		2015
Interest rate contracts
Swaps	$	22,000	$	24,162
Futures and forwards	5,289		5,167
Written options	3,091		3,506
Purchased options	3,482		3,896
Total interest rate contracts	33,862		36,731
Credit derivatives(a)	2,032		2,900
Foreign exchange contracts
Cross-currency swaps	3,359		3,199
Spot, futures and forwards	5,341		5,028
Written options	734		690
Purchased options	721		706
Total foreign exchange contracts	10,155		9,623
Equity contracts
Swaps	258		232
Futures and forwards	59		43
Written options	417		395
Purchased options	345		326
Total equity contracts	1,079		996
Commodity contracts
Swaps	102		83
Spot, futures and forwards	130		99
Written options	83		115
Purchased options	94		112
Total commodity contracts	409		409
Total derivative notional amounts	$	47,537	$	50,659

(a) For more information on volumes and types of credit derivative contracts, see the Credit derivatives discussion on pages 184–186.

(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 ofDecember 31, 2016 and 2015, 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
December 31, 2016 (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	$	601,557	$	4,406	$	605,963	$	28,302	$	567,894	$	2,884	$	570,778	$	10,815
Credit	29,645		—		29,645		1,294		28,666		—		28,666		1,411
Foreign exchange	232,137		1,289		233,426		23,271		233,823		1,148		234,971		20,508
Equity	34,940		—		34,940		4,939		38,362		—		38,362		8,140
Commodity	18,505		137		18,642		6,272		20,283		179		20,462		8,357
Total fair value of trading assets and liabilities	$	916,784	$	5,832	$	922,616	$	64,078	$	889,028	$	4,211	$	893,239	$	49,231
	Gross derivative receivables								Gross derivative payables
December 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	$	665,531	$	4,080	$	669,611	$	26,363	$	632,928	$	2,238	$	635,166	$	10,221
Credit	51,468		—		51,468		1,423		50,529		—		50,529		1,541
Foreign exchange	179,072		803		179,875		17,177		189,397		1,503		190,900		19,769
Equity	35,859		—		35,859		5,529		38,663		—		38,663		9,183
Commodity	23,713		1,352		25,065		9,185		27,653		1		27,654		12,076
Total fair value of trading assets and liabilities	$	955,643	$	6,235	$	961,878	$	59,677	$	939,170	$	3,742	$	942,912	$	52,790

(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.

Derivatives netting

The following tables present, as ofDecember 31, 2016 and 2015, gross and net derivative receivables and payables by contract and settlement type. Derivative receivables and payables, as well as the related cash collateral from the same counterparty, have been netted on the Consolidated balance sheets where 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, amounts are not eligible for netting on the Consolidated balance sheets, and those derivative receivables and payables are shown separately in the tables below.

In addition to the cash collateral received and transferred that is presented on a net basis with 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:

• collateral that consists of non-cash financial instruments (generally U.S. government and agency securities and other G7 government bonds) and cash collateral held at third party custodians, which are shown separately as “Collateral not nettable on the Consolidated balance sheets” in the tables below, up to the fair value exposure amount.

• the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables below; and

• collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables below.

	2016									2015
December 31, (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	$	365,227	$	(342,173	)		$	23,054		$	417,386	$	(396,506	)		$	20,880
OTC–cleared	235,399		(235,261		)		138			246,750		(246,742		)		8
Exchange-traded(a)	241		(227		)		14			—		—				—
Total interest rate contracts	600,867		(577,661		)		23,206			664,136		(643,248		)		20,888
Credit contracts:
OTC	23,130		(22,612		)		518			44,082		(43,182		)		900
OTC–cleared	5,746		(5,739		)		7			6,866		(6,863		)		3
Total credit contracts	28,876		(28,351		)		525			50,948		(50,045		)		903
Foreign exchange contracts:
OTC	226,271		(208,962		)		17,309			175,060		(162,377		)		12,683
OTC–cleared	1,238		(1,165		)		73			323		(321		)		2
Exchange-traded(a)	104		(27		)		77			—		—				—
Total foreign exchange contracts	227,613		(210,154		)		17,459			175,383		(162,698		)		12,685
Equity contracts:
OTC	20,868		(20,570		)		298			20,690		(20,439		)		251
OTC–cleared	—		—				—			—		—				—
Exchange-traded(a)	11,439		(9,431		)		2,008			12,285		(9,891		)		2,394
Total equity contracts	32,307		(30,001		)		2,306			32,975		(30,330		)		2,645
Commodity contracts:
OTC	11,571		(5,605		)		5,966			15,001		(6,772		)		8,229
OTC–cleared	—		—				—			—		—				—
Exchange-traded(a)	6,794		(6,766		)		28			9,199		(9,108		)		91
Total commodity contracts	18,365		(12,371		)		5,994			24,200		(15,880		)		8,320
Derivative receivables with appropriate legal opinions	908,028		(858,538		)	(b)	49,490			947,642		(902,201		)	(b)	45,441
Derivative receivables where an appropriate legal opinion has not been either sought or obtained	14,588						14,588			14,236						14,236
Total derivative receivables recognized on the Consolidated balance sheets	$	922,616					$	64,078		$	961,878					$	59,677
Collateral not nettable on the Consolidated balance sheets(c)(d)							(18,638		)							(13,543		)
Net amounts							$	45,440								$	46,134

	2016									2015
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	$	338,502	$	(329,325	)		$	9,177		$	393,709	$	(384,576	)		$	9,133
OTC–cleared	230,464		(230,463		)		1			240,398		(240,369		)		29
Exchange-traded(a)	196		(175		)		21			—		—				—
Total interest rate contracts	569,162		(559,963		)		9,199			634,107		(624,945		)		9,162
Credit contracts:
OTC	22,366		(21,614		)		752			44,379		(43,019		)		1,360
OTC–cleared	5,641		(5,641		)		—			5,969		(5,969		)		—
Total credit contracts	28,007		(27,255		)		752			50,348		(48,988		)		1,360
Foreign exchange contracts:
OTC	228,300		(213,296		)		15,004			185,178		(170,830		)		14,348
OTC–cleared	1,158		(1,158		)		—			301		(301		)		—
Exchange-traded(a)	328		(9		)		319			—		—				—
Total foreign exchange contracts	229,786		(214,463		)		15,323			185,479		(171,131		)		14,348
Equity contracts:
OTC	24,688		(20,808		)		3,880			23,458		(19,589		)		3,869
OTC–cleared	—		—				—			—		—				—
Exchange-traded(a)	10,004		(9,414		)		590			10,998		(9,891		)		1,107
Total equity contracts	34,692		(30,222		)		4,470			34,456		(29,480		)		4,976
Commodity contracts:
OTC	12,885		(5,252		)		7,633			16,953		(6,256		)		10,697
OTC–cleared	—		—				—			—		—				—
Exchange-traded(a)	7,099		(6,853		)		246			9,374		(9,322		)		52
Total commodity contracts	19,984		(12,105		)		7,879			26,327		(15,578		)		10,749
Derivative payables with appropriate legal opinions	881,631		(844,008		)	(b)	37,623			930,717		(890,122		)	(b)	40,595
Derivative payables where an appropriate legal opinion has not been either sought or obtained	11,608						11,608			12,195						12,195
Total derivative payables recognized on the Consolidated balance sheets	$	893,239					$	49,231		$	942,912					$	52,790
Collateral not nettable on the Consolidated balance sheets(c)(d)(e)							(8,925		)							(7,957		)
Net amounts							$	40,306								$	44,833

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

(b) Net derivatives receivable included cash collateral netted of $71.9 billion and $73.7 billion at December 31, 2016 and 2015, respectively. Net derivatives payable included cash collateral netted of $57.3 billion and $61.6 billion related to OTC and OTC-cleared derivatives at December 31, 2016 and 2015, respectively.

(c) Excludes all collateral related to derivative instruments where an appropriate legal opinion has not been either sought or obtained.

(d) Represents liquid security collateral as well as cash collateral held at third-party custodians related to derivative instruments where an appropriate legal opinion has been obtained. 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.

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

Liquidity risk and credit-related contingent features

In addition to the specific market risks introduced by each derivative contract type, derivatives expose JPMorgan Chase to credit risk — the risk that derivative counterparties may fail to meet their payment obligations under the derivative contracts and the collateral, if any, held by the Firm proves to be of insufficient value to cover the payment obligation. It is the policy of JPMorgan Chase to actively pursue, where possible, the use of legally enforceable master netting arrangements and collateral agreements to mitigate derivative counterparty credit risk. The amount of derivative receivables reported on the Consolidated balance sheets is the fair value of the derivative contracts after giving effect to legally enforceable master netting agreements and cash collateral held by the Firm.

While derivative receivables expose the Firm to credit risk, derivative payables expose the Firm to liquidity risk, as the derivative contracts typically require the Firm to post cash or securities collateral with counterparties as the fair value of the contracts moves in the counterparties’ favor or upon specified downgrades in the Firm’s and its subsidiaries’ respective credit ratings. Certain derivative contracts also provide for termination of the contract, generally upon a downgrade of either the Firm or the counterparty, at the fair value of the derivative contracts. 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, atDecember 31, 2016 and 2015.

OTC and OTC-cleared derivative payables containing downgrade triggers
December 31, (in millions)	2016		2015
Aggregate fair value of net derivative payables	$	21,550	$	22,328
Collateral posted	19,383		18,942

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.”), atDecember 31, 2016 and 2015, 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), nor 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
	2016				2015
December 31, (in millions)	Single-notch downgrade		Two-notch downgrade		Single-notch downgrade		Two-notch downgrade
Amount of additional collateral to be posted upon downgrade(a)	$	560	$	2,497	$	807	$	3,028
Amount required to settle contracts with termination triggers upon downgrade(b)	606		1,049		271		1,093

(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 in which 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 13, 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 atDecember 31, 2016was 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 pre-tax gains/(losses) recorded on such derivatives and the related hedged items for the years endedDecember 31, 2016, 2015 and 2014, respectively. The Firm includes gains/(losses) on the hedging derivative and the related hedged item in the same line item in the Consolidated statements of income.

	Gains/(losses) recorded in income									Income statement impact due to:
Year ended December 31, 2016 (in millions)	Derivatives			Hedged items			Total income statement impact			Hedge ineffectiveness(e)			Excluded components(f)
Contract type
Interest rate(a)(b)	$	(482	)	$	1,338		$	856		$	6		$	850
Foreign exchange(c)	2,435			(2,261		)	174			—			174
Commodity(d)	(536		)	586			50			(9		)	59
Total	$	1,417		$	(337	)	$	1,080		$	(3	)	$	1,083
	Gains/(losses) recorded in income									Income statement impact due to:
Year ended December 31, 2015 (in millions)	Derivatives			Hedged items			Total income statement impact			Hedge ineffectiveness(e)			Excluded components(f)
Contract type
Interest rate(a)(b)	$	38		$	911		$	949		$	3		$	946
Foreign exchange(c)	6,030			(6,006		)	24			—			24
Commodity(d)	1,153			(1,142		)	11			(13		)	24
Total	$	7,221		$	(6,237	)	$	984		$	(10	)	$	994
	Gains/(losses) recorded in income									Income statement impact due to:
Year ended December 31, 2014 (in millions)	Derivatives			Hedged items			Total income statement impact			Hedge ineffectiveness(e)			Excluded components(f)
Contract type
Interest rate(a)(b)	$	2,106		$	(801	)	$	1,305		$	131		$	1,174
Foreign exchange(c)	8,279			(8,532		)	(253		)	—			(253		)
Commodity(d)	49			145			194			42			152
Total	$	10,434		$	(9,188	)	$	1,246		$	173		$	1,073

(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) Excludes the amortization expense associated with the inception hedge accounting adjustment applied to the hedged item. This expense is recorded in net interest income and substantially offsets the income statement impact of the excluded components. 

(c) 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 primarily in principal transactions revenue and net interest income.

(d) 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.

(e) 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.

(f) 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 pre-tax gains/(losses) recorded on such derivatives, for the years endedDecember 31, 2016, 2015 and 2014, respectively. The Firm includes the gain/(loss) on the hedging derivative and the change in cash flows on the hedged item in the same line item in the Consolidated statements of income.

		Gains/(losses) recorded in income and other comprehensive income/(loss)
Year ended December 31, 2016 (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)		$	(74	)		$	—		$	(74	)	$	(55	)	$	19
Foreign exchange(b)		(286		)		—			(286		)	(395		)	(109		)
Total		$	(360	)		$	—		$	(360	)	$	(450	)	$	(90	)

		Gains/(losses) recorded in income and other comprehensive income/(loss)
Year ended December 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)		$	(99	)		$	—		$	(99	)	$	(44	)	$	55
Foreign exchange(b)		(81		)		—			(81		)	(53		)	28
Total		$	(180	)		$	—		$	(180	)	$	(97	)	$	83
		Gains/(losses) recorded in income and other comprehensive income/(loss)
Year ended December 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)		$	(54	)		$	—		$	(54	)	$	189		$	243
Foreign exchange(b)		78				—			78			(91		)	(169		)
Total		$	24			$	—		$	24		$	98		$	74

(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 the forecasted transactions that the Firm determined during the year ended December 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.

The Firm did not experience any forecasted transactions that failed to occur for the years ended 2016 and 2014. In 2015, the Firm reclassified approximately$150 millionof net losses from AOCI to other income because the Firm determined that it was probable that the forecasted interest payment cash flows would not occur as a result of the planned reduction in wholesale non-operating deposits.

Over the next 12 months, the Firm expects that approximately $151 million(after-tax) of net losses recorded in AOCI atDecember 31, 2016, related to cash flow hedges will be recognized in income. For terminated cash flow hedges, the maximum length of time over which forecasted transactions are remaining is approximatelysix years. For open cash flow hedges, the maximum length of time over which forecasted transactions are hedged is approximately one year. The Firm’s longer-dated forecasted transactions 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 pre-tax gains/(losses) recorded on such instruments for the years endedDecember 31, 2016, 2015 and 2014.

	Gains/(losses) recorded in income and other comprehensive income/(loss)
	2016		2015		2014
Year ended December 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	Excluded components recorded directly in income(a)	Effective portion recorded in OCI
Foreign exchange derivatives	$(282)	$262	$(379)	$1,885	$(448)	$1,698

(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 2016, 2015 and 2014.

Gains and losses on derivatives used for specified risk management purposes

The following table presents pre-tax 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, foreign currency denominated assets and liabilities, and commodities-related contracts and investments.

	Derivatives gains/(losses) recorded in income
Year ended December 31, (in millions)	2016			2015			2014
Contract type
Interest rate(a)	$	1,174		$	853		$	2,308
Credit(b)	(282		)	70			(58		)
Foreign exchange(c)	27			25			(7		)
Commodity(d)	—			(12		)	156
Total	$	919		$	936		$	2,399

(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 derivatives used to mitigate 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 its 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 7 for information on principal transactions revenue.

Credit derivatives

Credit derivatives are financial instruments whose value is derived from the credit risk associated with the debt of a third-party issuer (the reference entity) and which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller). Credit derivatives expose the protection purchaser to the creditworthiness of the protection seller, as the protection seller is required to make payments under the contract when the reference entity experiences a credit event, such as a bankruptcy, a failure to pay its obligation or a restructuring. The seller of credit protection receives a premium for providing protection but has the risk that the underlying instrument referenced in the contract will be subject to a credit event.

The Firm is both a purchaser and seller of protection in the credit derivatives market and uses these derivatives for two primary purposes. First, in its capacity as a market-maker, the Firm actively manages a portfolio of credit derivatives by purchasing and selling credit protection, predominantly on corporate debt obligations, to meet the needs of customers. Second, as an end-user, the Firm uses credit derivatives to manage credit risk associated with lending exposures (loans and unfunded commitments) and derivatives counterparty exposures in the Firm’s wholesale businesses, and to manage the credit risk arising from certain financial instruments in the Firm’s market-making businesses. Following is a summary of various types of credit derivatives.

Credit default swaps

Credit derivatives may reference the credit of either a single reference entity (“single-name”) or a broad-based index. The Firm purchases and sells protection on both single- name and index-reference obligations. Single-name CDS and index CDS contracts are either OTC or OTC-cleared derivative contracts. Single-name CDS are used to manage the default risk of a single reference entity, while index CDS contracts are used to manage the credit risk associated with the broader credit markets or credit market segments. Like the S&P 500 and other market indices, a CDS index consists of a portfolio of CDS across many reference entities. New series of CDS indices are periodically established with a new underlying portfolio of reference entities to reflect changes in the credit markets. If one of the reference entities in the index experiences a credit event, then the reference entity that defaulted is removed from the index. CDS can also be referenced against specific portfolios of reference names or against customized exposure levels based on specific client demands: for example, to provide protection against the first$1 millionof realized credit losses in a$10 millionportfolio of exposure. Such structures are commonly known as tranche CDS.

For both single-name CDS contracts and index CDS contracts, upon the occurrence of a credit event, under the terms of a CDS contract neither party to the CDS contract has recourse to the reference entity. The protection purchaser has recourse to the protection seller for the difference between the face value of the CDS contract and the fair value of the reference obligation at settlement of the credit derivative contract, also known as the recovery value. The protection purchaser does not need to hold the debt instrument of the underlying reference entity in order to receive amounts due under the CDS contract when a credit event occurs.

Credit-related notes

A credit-related note is a funded credit derivative where the issuer of the credit-related note purchases from the note investor credit protection on a reference entity or an index. Under the contract, the investor pays the issuer the par value of the note at the inception of the transaction, and in return, the issuer pays periodic payments to the investor, based on the credit risk of the referenced entity. The issuer also repays the investor the par value of the note at maturity unless the reference entity (or one of the entities that makes up a reference index) experiences a specified credit event. If a credit event occurs, the issuer is not obligated to repay the par value of the note, but rather, the issuer pays the investor the difference between the par value of the note and the fair value of the defaulted reference obligation at the time of settlement. Neither party to the credit-related note has recourse to the defaulting reference entity.

The following tables present a summary of the notional amounts of credit derivatives and credit-related notes the Firm sold and purchased as ofDecember 31, 2016 and 2015. Upon a credit event, the Firm as a seller of protection would typically pay out only a percentage of the full notional amount of net protection sold, as the amount actually required to be paid on the contracts takes into account the recovery value of the reference obligation at the time of settlement. The Firm manages the credit risk on contracts to sell protection by purchasing protection with identical or similar underlying reference entities. Other purchased protection referenced in the following tables includes credit derivatives bought on related, but not identical, reference positions (including indices, portfolio coverage and other reference points) as well as protection purchased through credit-related notes.

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
	Protection sold			Protection purchased with identical underlyings(b)			Net protection (sold)/purchased(c)			Other protection purchased(d)
December 31, 2016 (in millions)
Credit derivatives
Credit default swaps	$	(961,003	)		$	974,252	$	13,249		$	7,935
Other credit derivatives(a)	(36,829		)		31,859		(4,970		)	19,991
Total credit derivatives	(997,832		)		1,006,111		8,279			27,926
Credit-related notes	(41		)		—		(41		)	4,505
Total	$	(997,873	)		$	1,006,111	$	8,238		$	32,431
	Maximum payout/Notional amount
	Protection sold			Protection purchased with identical underlyings(b)			Net protection (sold)/purchased(c)			Other protection purchased(d)
December 31, 2015 (in millions)
Credit derivatives
Credit default swaps	$	(1,386,071	)		$	1,402,201	$	16,130		$	12,011
Other credit derivatives(a)	(42,738		)		38,158		(4,580		)	18,792
Total credit derivatives	(1,428,809		)		1,440,359		11,550			30,803
Credit-related notes	(30		)		—		(30		)	4,715
Total	$	(1,428,839	)		$	1,440,359	$	11,520		$	35,518

(a) Other credit derivatives largely 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, maturity profile, and total fair value, of credit derivatives and credit-related notes as ofDecember 31, 2016 and 2015, whereJPMorgan Chaseis 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
December 31, 2016 (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	$	(273,688	)	$	(383,586	)	$	(39,281	)	$	(696,555	)	$	7,841	$	(3,055	)	$	4,786
Noninvestment-grade	(107,955		)	(170,046		)	(23,317		)	(301,318		)	8,184		(8,570		)	(386		)
Total	$	(381,643	)	$	(553,632	)	$	(62,598	)	$	(997,873	)	$	16,025	$	(11,625	)	$	4,400

December 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	$	(307,211	)	$	(699,227	)	$	(46,970	)	$	(1,053,408	)	$	13,539	$	(6,836	)	$	6,703
Noninvestment-grade	(109,195		)	(245,151		)	(21,085		)	(375,431		)	10,823		(18,891		)	(8,068		)
Total	$	(416,406	)	$	(944,378	)	$	(68,055	)	$	(1,428,839	)	$	24,362	$	(25,727	)	$	(1,365	)

(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.