Derivatives

12 Months Ended

Dec. 31, 2012

Derivatives

Derivatives

NOTE 9. Derivatives

        The Company utilizes derivatives for trading strategies and economic hedging strategies to actively manage its market and liquidity exposures. In addition, ClearPoint enters into mortgage loan IRLCs in connection with its mortgage lending activities (which are being discontinued in the year 2013 as a result of the Homeward Transaction). The following table summarizes the Company's derivative instruments as of December 31, 2012 and December 31, 2011:

	December 31, 2012							December 31, 2011
(In thousands)	Number of Contracts		Notional		Fair Value			Number of Contracts		Notional		Fair Value
Purchase Contracts
TBA purchase agreements		19	$	202,646	$	54			1	$	589	$	—
Eurodollar futures contracts		—		—		—			—		—		—
IRLCs		512		100,079		964			708		127,227		1,696
Total		531		302,725	$	1,018			709	$	127,816	$	1,696
Sale Contracts
TBA sale agreements		27	$	708,076	$	(1,511	)		17	$	371,000	$	(1,183	)
Forward sale agreements		—		—		—			11		120,900		(788	)
Eurodollar futures contracts		268		268,000		(15	)		—		—		—
Total		295	$	976,076	$	(1,526	)		28	$	491,900	$	(1,971	)

        Total gains/(losses) associated with these activities, which are recorded within Principal transactions within the Consolidated Statements of Operations were ($13.8) million and ($21.1) million, for the years ended December 31, 2012 and 2011, respectively.