Derivatives

6 Months Ended

Jun. 30, 2012

Derivatives

Derivatives

9.Derivatives

The Company utilizes derivatives for trading strategies and 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, 2012 and December 31, 2011:

	June 30, 2012						December 31, 2011
(In thousands of dollars)	Number of Contracts	Notional		Fair Value			Number of Contracts	Notional		Fair Value
Purchase Contracts
TBA purchase agreements	4	$	41,250	$	100		1	$	589	$	—
U.S. treasury futures contracts	—	—		—			—	—		—
IRLCs	792	138,107		1,737			708	127,227		1,696
Total	796	179,357		$	1,837		709	$	127,816	$	1,696
Sale Contracts
TBA sale agreements	25	$	530,194	$	(1,100	)	17	$	371,000	$	(1,183	)
Forward sale agreements	1	2,180		(12		)	11	120,900		(788		)
U.S. treasury futures contracts	—	—		—			—	—		—
Total	26	$	532,374	$	(1,112	)	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 ($4.2) million and ($9.0) million, for the three months ended June 30, 2012 and 2011, respectively, and ($7.3) million and ($12.0) million, for the six months ended June 30, 2012 and 2011, respectively.