Offsetting Arrangements (Tables)

6 Months Ended

Jun. 30, 2018

The following tables present information about the offsetting of assets related to derivative contracts and secured financing transactions, as of the dates indicated:



Assets:	June 30, 2018
									Gross Amounts Not Offset in Statement of Condition
(In millions)	Gross Amounts of Recognized Assets⁽¹⁾⁽²⁾		Gross Amounts Offset in Statement of Condition⁽³⁾			Net Amounts of Assets Presented in Statement of Condition			Cash and Securities Received⁽⁴⁾			Net Amount⁽⁵⁾
Derivatives:
Foreign exchange contracts	$	17,380	$	(9,674	)	$	7,706		$	—		$	7,706
Interest-rate contracts⁽⁶⁾	—		—			—			—			—
Other derivative contracts	2		—			2			—			2
Cash collateral and securities netting	NA		(1,557		)	(1,557		)	(100		)	(1,657		)
Total derivatives	17,382		(11,231		)	6,151			(100		)	6,051
Other financial instruments:
Resale agreements and securities borrowing⁽⁷⁾	73,482		(47,108		)	26,372			(26,063		)	310
Total derivatives and other financial instruments	$	90,864	$	(58,339	)	$	32,523		$	(26,163	)	$	6,361



Assets:	December 31, 2017
									Gross Amounts Not Offset in Statement of Condition
(In millions)	Gross Amounts of Recognized Assets⁽¹⁾⁽²⁾		Gross Amounts Offset in Statement of Condition⁽³⁾			Net Amounts of Assets Presented in Statement of Condition			Cash and Securities Received⁽⁴⁾			Net Amount⁽⁵⁾
Derivatives:
Foreign exchange contracts	$	11,597	$	(5,548	)	$	6,049		$	—		$	6,049
Interest-rate contracts⁽⁶⁾	8		—			8			—			8
Other derivative contracts	1		—			1			—			1
Cash collateral and securities netting	NA		(2,045		)	(2,045		)	(124		)	(2,169		)
Total derivatives	11,606		(7,593		)	4,013			(124		)	3,889
Other financial instruments:
Resale agreements and securities borrowing⁽⁷⁾	70,079		(47,434		)	22,645			(22,645		)	—
Total derivatives and other financial instruments	$	81,685	$	(55,027	)	$	26,658		$	(22,769	)	$	3,889

⁽¹⁾Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.

⁽²⁾Derivative amounts are carried at fair value and securities financing amounts are carried at amortized cost, except for securities collateral which is also carried at fair value. For additional information about the measurement basis of these instruments, refer to pages 127 to 138 in Notes 1 and 2 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2017 Form 10-K.

⁽³⁾Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.

⁽⁴⁾ Includes securities in connection with our securities borrowing transactions.

⁽⁵⁾Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.

⁽⁶⁾Variation margin payments presented as settlements rather than collateral.

⁽⁷⁾Included in the $26,372 million as of June 30, 2018 were $3,583 million of resale agreements and $22,789 million of collateral provided related to securities borrowing. Included in the $22,645 million as of December 31, 2017 were $3,241 million of resale agreements and $19,404 million of collateral provided related to securities borrowing. Resale agreements and collateral provided related to securities borrowing were recorded in securities purchased under resale agreements and other assets, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions.

^NA Not applicable

Offsetting Liabilities

The following tables present information about the offsetting of liabilities related to derivative contracts and secured financing transactions, as of the dates indicated:



Liabilities:	June 30, 2018
									Gross Amounts Not Offset in Statement of Condition
(In millions)	Gross Amounts of Recognized Liabilities⁽¹⁾⁽²⁾		Gross Amounts Offset in Statement of Condition⁽³⁾			Net Amounts of Liabilities Presented in Statement of Condition			Cash and Securities Provided⁽⁴⁾			Net Amount⁽⁵⁾
Derivatives:
Foreign exchange contracts	$	17,558	$	(9,674	)	$	7,884		$	—		$	7,884
Interest-rate contracts⁽⁶⁾	106		—			106			—			106
Other derivative contracts	270		—			270			—			270
Cash collateral and securities netting	NA		(2,934		)	(2,934		)	(330		)	(3,264		)
Total derivatives	17,934		(12,608		)	5,326			(330		)	4,996
Other financial instruments:
Repurchase agreements and securities lending⁽⁷⁾	61,087		(47,108		)	13,979			(12,509		)	1,470
Total derivatives and other financial instruments	$	79,021	$	(59,716	)	$	19,305		$	(12,839	)	$	6,466



Liabilities:	December 31, 2017
									Gross Amounts Not Offset in Statement of Condition
(In millions)	Gross Amounts of Recognized Liabilities⁽¹⁾⁽²⁾		Gross Amounts Offset in Statement of Condition⁽³⁾			Net Amounts of Liabilities Presented in Statement of Condition			Cash and Securities Provided⁽⁴⁾			Net Amount⁽⁵⁾
Derivatives:
Foreign exchange contracts	$	11,467	$	(5,548	)	$	5,919		$	—		$	5,919
Interest-rate contracts⁽⁶⁾	100		—			100			—			100
Other derivative contracts	285		—			285			—			285
Cash collateral and securities netting	NA		(422		)	(422		)	(450		)	(872		)
Total derivatives	11,852		(5,970		)	5,882			(450		)	5,432
Other financial instruments:
Repurchase agreements and securities lending⁽⁷⁾	54,127		(47,434		)	6,693			(4,299		)	2,394
Total derivatives and other financial instruments	$	65,979	$	(53,404	)	$	12,575		$	(4,749	)	$	7,826

⁽¹⁾Amounts include all transactions regardless of whether or not they are subject to an enforceable netting arrangement.

⁽³⁾Amounts subject to netting arrangements which have been determined to be legally enforceable and eligible for netting in the consolidated statement of condition.

⁽⁴⁾ Includes securities provided in connection with our securities lending transactions.

⁽⁵⁾Includes amounts secured by collateral not determined to be subject to enforceable netting arrangements.

⁽⁶⁾Variation margin payments presented as settlements rather than collateral.

⁽⁷⁾Included in the $13,979 million as of June 30, 2018 were $3,088 million of repurchase agreements and $10,891 million of collateral received related to securities lending transactions. Included in the $6,693 million as of December 31, 2017 were $2,842 million of repurchase agreements and $3,851 million of collateral received related to securities lending transactions. Repurchase agreements and collateral received related to securities lending were recorded in securities sold under repurchase agreements and accrued expenses and other liabilities, respectively, in our consolidated statement of condition. Refer to Note 9 for additional information with respect to principal securities finance transactions.

^NA Not applicable

Securities Sold and Securities Loaned Under Repurchase Agreements

The following table summarizes our enhanced custody repurchase agreements and securities lending transactions by category of collateral pledged and remaining maturity of these agreements as of the periods indicated:



	Remaining Contractual Maturity of the Agreements
	As of June 30, 2018						As of December 31, 2017⁽¹⁾
(In millions)	Overnight and Continuous		Up to 30 Days		Total		Overnight and Continuous
Repurchase agreements:
U.S. Treasury and agency securities	$	45,123	$	—	$	45,123	$	43,072
Total	45,123		—		45,123		43,072
Securities lending transactions:
US Treasury and agency securities	115		—		115		—
Corporate debt securities	88		—		88		35
Equity securities	8,596		165		8,761		11,020
Other⁽²⁾	7,000		—		7,000		—
Total	15,799		165		15,964		11,055
Gross amount of recognized liabilities for repurchase agreements and securities lending	$	60,922	$	165	$	61,087	$	54,127

⁽¹⁾As of December 31, 2017, there were no balances with contractual maturities up to 30 days.

⁽²⁾ Represents a portion of underlying client assets related to our enhanced custody business, which assets clients have allowed us to transfer and re-pledge.