Derivatives

3 Months Ended

Mar. 31, 2013

Derivatives

Derivatives

9.  Derivatives

The Company utilizes derivatives for various economic hedging strategies to actively manage its market and liquidity exposures, principally in connection with the sales and trading activities of the Company’s MBS & Rates division (which are being discontinued in the second quarter of 2013).  In addition, ClearPoint entered into mortgage loan IRLCs in connection with its mortgage lending activities, which have been wound down in connection with the Homeward Transaction.  The following table summarizes the Company’s derivative instruments as of March 31, 2013 and December 30, 2012:

	March 31, 2013					December 31, 2012
(In thousands of dollars)	Number of Contracts	Notional		Fair Value		Number of Contracts	Notional		Fair Value
Purchase Contracts
TBA purchase agreements	—	$	—	$	—	19	$	202,646	$	54
IRLCs	—	—		—		512	100,079		964
Total	—	$	—	$	—	531	$	302,725	$	1,018
Sale Contracts
TBA sale agreements	6	$	349,367	$	1,640	27	$	708,076	$	(1,511	)
Eurodollar futures contracts	—	—		—		268	268,000		(15		)
Total	6	$	349,367	$	1,640	295	$	976,076	$	(1,526	)

Total gains/(losses) related to continuing operations (excluding ClearPoint activities), which are recorded within Principal transactions within the Consolidated Statements of Operations, were $1.6 million and ($1.9) million, for the three months ended March 31, 2013 and 2012, respectively.