Derivatives

9 Months Ended

Sep. 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 September 30, 2011 and December 31, 2010:

	September 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	1	$	12,000	$	7		1	$	17,000	$	99
U.S. treasury futures contracts	—	—		—			—	—		—
IRLCs	1,574	318,569		3,349			—	—		—
Underwriting commitments	—	—		—			—	—		—
Total	1,575	330,569		$	3,356		1	$	17,000	$	99
Sale Contracts
TBA sale agreements	32	$	741,775	$	(498	)	15	$	414,848	$	(2,546	)
Forward sale agreements	10	138,935		(530		)	—	—		—
U.S. treasury futures contracts	—	—		—			—	—		—
Total	42	$	880,710	$	(1,028	)	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 ($4.4) million and $1.2 million, for the three months ended September 30, 2011 and 2010, respectively, and ($17.4) million and ($6.9) million, for the nine months ended September 30, 2011 and 2010, respectively.