DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Notional and Fair Value Amounts of Asset and Liability Derivatives, by Balance Sheet Location

See the table below for the notional and fair value amounts of both the asset and liability derivatives.



	Asset derivatives
	March 31, 2016						September 30, 2015
	Balance sheet location	Notional amount			Fair value⁽¹⁾		Balance sheet location	Notional amount			Fair value⁽¹⁾
	(in thousands)
Derivatives designated as hedging instruments:
Forward foreign exchange contracts ⁽²⁾	Prepaid expenses and other assets	$	768,800	⁽³⁾	$	2,257	Prepaid expenses and other assets	$	752,600	⁽³⁾	$	613
Derivatives not designated as hedging instruments:
Interest rate contracts ⁽⁴⁾	Trading instruments	$	1,940,004		$	138,228	Trading instruments	$	2,473,946		$	130,095
Interest rate contracts ⁽⁵⁾	Derivative instruments associated with offsetting matched book positions	$	1,507,020		$	396,163	Derivative instruments associated with offsetting matched book positions	$	1,649,863		$	389,457
Forward foreign exchange contracts ⁽⁴⁾	Trading instruments	$	108,462	⁽³⁾	$	9,677	Trading instruments	$	74,873	⁽³⁾	$	2,612
Forward foreign exchange contracts ⁽²⁾	Prepaid expenses and other assets	$	181,000	⁽³⁾	$	681	Prepaid expenses and other assets	$	214,300	⁽³⁾	$	304
	Liability derivatives
Derivatives designated as hedging instruments:
Interest rate contracts ⁽⁶⁾	Trade and other payables	$	450,000		$	20,803	Trade and other payables	$	300,000		$	7,545
Forward foreign exchange contracts ⁽²⁾	Trade and other payables	$	100,400	⁽³⁾	$	84	Trade and other payables	$	—		$	—
Derivatives not designated as hedging instruments:
Interest rate contracts ⁽⁴⁾	Trading instruments sold	$	1,928,733		$	130,702	Trading instruments sold	$	1,906,766		$	104,255
Interest rate contracts ⁽⁵⁾	Derivative instruments associated with offsetting matched book positions	$	1,507,020		$	396,163	Derivative instruments associated with offsetting matched book positions	$	1,649,863		$	389,457
Forward foreign exchange contracts ⁽⁴⁾	Trading instruments sold	$	119,856	⁽³⁾	$	4,939	Trading instruments sold	$	136,710	⁽³⁾	$	4,865
Forward foreign exchange contracts ⁽²⁾	Trade and other payables	$	139,300	⁽³⁾	$	117	Trade and other payables	$	—		$	—


(1)	The fair value in this table is presented on a gross basis before netting of cash collateral and before any netting by counterparty according to our legally enforceable master netting arrangements. The fair value in the Condensed Consolidated Statements of Financial Condition is presented net. See Note 14 for additional information regarding offsetting asset and liability balances.


(2)	These contracts are associated with RJ Bank’s activities to hedge its foreign currency exposure.


(3)	The notional amount presented is denominated in Canadian currency.


(4)	These contracts arise from our OTC Derivatives Operations.


(5)	These contracts arise from our Offsetting Matched Book Derivatives Operations.


(6)	These contracts are associated with our RJ Bank Interest Hedges activities.

Derivative Gain (Loss) Recognized in Accumulated Other Comprehensive Income

Gains (losses) recognized in AOCI, net of income taxes on derivatives are as follows (see Note 17 for additional information):



	Three months ended March 31,						Six months ended March 31,
	2016			2015			2016			2015
	(in thousands)
Forward foreign exchange contracts	$	(23,411	)	$	30,519		$	(11,174	)	$	43,577
RJ Bank Interest Hedges	(11,469		)	(1,501		)	(8,204		)	(1,501		)
Total (losses) gains recognized in AOCI, net of taxes	$	(34,880	)	$	29,018		$	(19,378	)	$	42,076

Amount of Gain (Loss) on Derivatives Recognized in Income

The table below sets forth the impact of the derivatives not designated as hedging instruments on the Condensed Consolidated Statements of Income and Comprehensive Income:



	Location of gain (loss) recognized on derivatives in the Condensed Consolidated Statements of Income and Comprehensive Income	Amount of gain (loss) on derivatives recognized in income
		Three months ended March 31,					Six months ended March 31,
		2016			2015		2016			2015
		(in thousands)
Derivatives not designated as hedging instruments:
Interest rate contracts and forward foreign exchange contracts ⁽¹⁾	Net trading profit	$	1,365		$	2,403	$	1,773		$	2,280
Interest rate contracts ⁽²⁾	Other revenues	$	23		$	44	$	46		$	66
Forward foreign exchange contracts ⁽³⁾	Other revenues	$	(12,970	)	$	8,683	$	(7,412	)	$	12,305


(1)	These contracts arise from our OTC Derivatives Operations.


(2)	These contracts arise from our Offsetting Matched Book Derivatives Operations.


(3)	These contracts are associated with RJ Bank’s activities to hedge its foreign currency exposure.