Securities financing activities

For a discussion of accounting policies relating to securities financing activities, refer to Note 11 of JPMorgan Chase’s 2017 Annual Report. For further information regarding securities borrowed and securities lending agreements for which the fair value option has been elected, refer to Note 3. For further information regarding assets pledged and collateral received in securities financing agreements, refer to Note 21.

The table below summarizes the gross and net amounts of the Firm’s securities financing agreements as of June 30, 2018 and December 31, 2017. When the Firm has obtained an appropriate legal opinion with respect to the master netting agreement with a counterparty and where other relevant netting criteria under U.S. GAAP are met, the Firm nets, on the Consolidated balance sheets, the balances outstanding under its securities financing agreements with the same counterparty. In addition, the Firm exchanges securities and/or cash collateral with its counterparties; this collateral also reduces the economic exposure with the counterparty. Such collateral, along with securities financing balances that do not meet all these relevant netting criteria under U.S. GAAP, is presented as “Amounts not nettable on the Consolidated balance sheets,” and reduces the “Net amounts” presented below, if the Firm has an appropriate legal opinion with respect to the master netting agreement with the counterparty. Where a legal opinion has not been either sought or obtained, the securities financing balances are presented gross in the “Net amounts” below, and related collateral does not reduce the amounts presented.



	June 30, 2018
(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets			Amounts presented on the Consolidated balance sheets^(b)		Amounts not nettable on the Consolidated balance sheets^(c)			Net amounts^(d)
Assets
Securities purchased under resale agreements	$	541,760	$	(315,405	)	$	226,355	$	(217,139	)		$	9,216
Securities borrowed	127,331		(19,085		)	108,246		(75,197		)		33,049
Liabilities
Securities sold under repurchase agreements	$	480,097	$	(315,405	)	$	164,692	$	(149,808	)		$	14,884
Securities loaned and other^(a)	35,520		(19,085		)	16,435		(16,015		)		420



	December 31, 2017
(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets			Amounts presented on the Consolidated balance sheets^(b)		Amounts not nettable on the Consolidated balance sheets^(c)			Net amounts^(d)
Assets
Securities purchased under resale agreements	$	448,608	$	(250,505	)	$	198,103	$	(188,502	)		$	9,601
Securities borrowed	113,926		(8,814		)	105,112		(76,805		)		28,307
Liabilities
Securities sold under repurchase agreements	$	398,218	$	(250,505	)	$	147,713	$	(129,178	)		$	18,535
Securities loaned and other^(a)	27,228		(8,814		)	18,414		(18,151		)		263


(a)	Includes securities-for-securities lending transactions of $6.6 billion and $9.2 billion at June 30, 2018 and December 31, 2017, respectively, accounted for at fair value, where the Firm is acting as lender. These amounts are presented within other liabilities in the Consolidated balance sheets.

(b)

Includes securities financing agreements accounted for at fair value. At June 30, 2018 and December 31, 2017, included securities purchased under resale agreements of $12.8 billion and $14.7 billion, respectively and securities sold under agreements to repurchase of $866 million and $697 million, respectively. There were $4.1 billion and $3.0 billion of securities borrowed at June 30, 2018 and December 31, 2017, respectively. There were no securities loaned accounted for at fair value in either period.


(c)	In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the amounts reported in this column are limited to the related asset or liability with that counterparty.

(d)

Includes securities financing agreements that provide collateral rights, but where an appropriate legal opinion with respect to the master netting agreement has not been either sought or obtained. At June 30, 2018 and December 31, 2017, included $5.2 billion and $7.5 billion, respectively, of securities purchased under resale agreements; $30.0 billion and $25.5 billion, respectively, of securities borrowed; $13.4 billion and $16.5 billion, respectively, of securities sold under agreements to repurchase; and $50 million and $29 million, respectively, of securities loaned and other.

The tables below present as of June 30, 2018, and December 31, 2017 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements.



	Gross liability balance
	June 30, 2018				December 31, 2017
(in millions)	Securities sold under repurchase agreements		Securities loaned and other^(a)		Securities sold under repurchase agreements		Securities loaned and other^(a)
Mortgage-backed securities
U.S. government agencies	19,277		—		13,100		—
Residential - nonagency	2,337		—		2,972		—
Commercial - nonagency	1,415		—		1,594		—
U.S. Treasury and government agencies	226,381		250		177,581		14
Obligations of U.S. states and municipalities	405		—		1,557		—
Non-U.S. government debt	197,813		1,481		170,196		2,485
Corporate debt securities	14,390		194		14,231		287
Asset-backed securities	3,320		—		3,508		—
Equity securities	14,759		33,595		13,479		24,442
Total	$	480,097	$	35,520	$	398,218	$	27,228



	Remaining contractual maturity of the agreements
	Overnight and continuous						Greater than 90 days
June 30, 2018 (in millions)	Overnight and continuous		Up to 30 days		30 – 90 days		Greater than 90 days		Total
Total securities sold under repurchase agreements	$	190,179	$	176,526	$	53,653	$	59,739	$	480,097
Total securities loaned and other^(a)	28,747		869		3,324		2,580		35,520



	Remaining contractual maturity of the agreements
	Overnight and continuous						Greater than 90 days
December 31, 2017 (in millions)	Overnight and continuous		Up to 30 days		30 – 90 days		Greater than 90 days		Total
Total securities sold under repurchase agreements	$	166,425	$	156,434	$	41,611	$	33,748	$	398,218
Total securities loaned and other^(a)	22,876		375		2,328		1,649		27,228


(a)	Includes securities-for-securities lending transactions of $6.6 billion and $9.2 billion at June 30, 2018 and December 31, 2017, respectively, accounted for at fair value, where the Firm is acting as lender. These amounts are presented within other liabilities on the Consolidated balance sheets.

Transfers not qualifying for sale accounting

At June 30, 2018, and December 31, 2017, the Firm held $1.4 billion and $1.5 billion respectively, of financial assets for which the rights have been transferred to third parties; however, the transfers did not qualify as a sale in accordance with U.S. GAAP. These transfers have been recognized as collateralized financing transactions. The transferred assets are recorded in trading assets and loans, and the corresponding liabilities are recorded predominantly in short-term borrowings on the Consolidated balance sheets.