Derivatives

6 Months Ended

Jun. 30, 2011

Derivatives

Derivatives

9. Derivatives

The Company utilizes derivatives for various economic hedging strategies to actively manage its market and liquidity exposures.  In addition, the Company enters into mortgage loan IRLCs in connection with its mortgage lending activities.  The following table summarizes the Company’s derivative instruments as of June 30, 2011 and December 31, 2010:

	June 30, 2011					December 31, 2010
(In thousands of dollars)	Number of Contracts	Notional		Fair Value		Number of Contracts	Notional		Fair Value
Purchase Contracts
TBA purchase agreements	2	$	9,554	$	4	1	$	17,000	$	99
U.S. treasury futures contracts	—	—		—		—	—		—
IRLCs	404	96,148		574		—	—		—
Underwriting commitments	—	—		—		—	—		—
Total	406	$	105,702	$	578	1	$	17,000	$	99
Sale Contracts
TBA sale agreements	26	$	494,997	$	301	15	$	414,848	$	(2,546	)
Forward sale agreements	2	632		4		—	—		—
U.S. treasury futures contracts	—	—		—		—	—		—
Total	28	$	495,629	$	305	15	$	414,848	$	(2,546	)

Total gain/(losses) associated with these activities, which are recorded within Principal transactions within the Consolidated Statements of Operations were ($9.0) million and ($6.3) million, for the three months ended June 30, 2011 and 2010, respectively, and ($12.0) million and ($9.2) million, for the six months ended June 30, 2011 and 2010, respectively.