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Offsetting Arrangements (Tables)

9 Months Ended

Sep. 30, 2020

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


Assets:	September 30, 2020
	Gross Amounts of Recognized Assets⁽¹⁾⁽²⁾		Gross Amounts Offset in Statement of Condition⁽³⁾		Net Amounts of Assets Presented in Statement of Condition		Gross Amounts Not Offset in Statement of Condition
(In millions)											Cash and Securities Received⁽⁴⁾	Net Amount⁽⁵⁾
Derivatives:
Foreign exchange contracts	$	16,905	$	(9,807)	$	7,098	$	—	$	7,098
Interest rate contracts⁽⁶⁾	—		—		—		—		—



Cash collateral and securities netting	NA		(1,383)		(1,383)		(935)		(2,318)
Total derivatives	16,905		(11,190)		5,715		(935)		4,780
Other financial instruments:


Resale agreements and securities borrowing⁽⁷⁾⁽⁸⁾	140,193		(121,808)		18,385		(16,160)		2,225
Total derivatives and other financial instruments	$	157,098	$	(132,998)	$	24,100	$	(17,095)	$	7,005


Assets:	December 31, 2019
	Gross Amounts of Recognized Assets⁽¹⁾⁽²⁾		Gross Amounts Offset in Statement of Condition⁽³⁾		Net Amounts of Assets Presented in Statement of Condition		Gross Amounts Not Offset in Statement of Condition
(In millions)											Cash and Securities Received⁽⁴⁾	Net Amount⁽⁵⁾
Derivatives:
Foreign exchange contracts	$	15,140	$	(8,081)	$	7,059	$	—	$	7,059
Interest rate contracts⁽⁶⁾	8		(4)		4		—		4



Cash collateral and securities netting	NA		(2,310)		(2,310)		(685)		(2,995)
Total derivatives	15,148		(10,395)		4,753		(685)		4,068
Other financial instruments:
Resale agreements and securities borrowing⁽⁷⁾⁽⁸⁾	179,989		(159,978)		20,011		(19,572)		439
Total derivatives and other financial instruments	$	195,137	$	(170,373)	$	24,764	$	(20,257)	$	4,507

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

⁽²⁾Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments.

⁽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 $18.39 billion as of September 30, 2020 were $4.50 billion of resale agreements and $13.89 billion of collateral provided related to securities borrowing. Included in the $20.01 billion as of December 31, 2019 were $1.49 billion of resale agreements and $18.52 billion 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.

⁽⁸⁾Offsetting of resale agreements primarily relates to our involvement in FICC, where we settle transactions on a net basis for payment and delivery through the Fedwire system.

^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:	September 30, 2020
	Gross Amounts of Recognized Liabilities⁽¹⁾⁽²⁾		Gross Amounts Offset in Statement of Condition⁽³⁾		Net Amounts of Liabilities Presented in Statement of Condition		Gross Amounts Not Offset in Statement of Condition
(In millions)											Cash and Securities Received⁽⁴⁾	Net Amount⁽⁵⁾
Derivatives:
Foreign exchange contracts	$	15,472	$	(9,807)	$	5,665	$	—	$	5,665
Interest rate contracts⁽⁶⁾	52		—		52		—		52
Other derivative contracts	176		—		176		—		176
Cash collateral and securities netting	NA		(1,597)		(1,597)		(539)		(2,136)
Total derivatives	15,700		(11,404)		4,296		(539)		3,757
Other financial instruments:


Repurchase agreements and securities lending⁽⁷⁾⁽⁸⁾	132,480		(121,808)		10,672		(10,267)		405
Total derivatives and other financial instruments	$	148,180	$	(133,212)	$	14,968	$	(10,806)	$	4,162


Liabilities:	December 31, 2019
	Gross Amounts of Recognized Liabilities⁽¹⁾⁽²⁾		Gross Amounts Offset in Statement of Condition⁽³⁾		Net Amounts of Liabilities Presented in Statement of Condition		Gross Amounts Not Offset in Statement of Condition
(In millions)											Cash and Securities Received⁽⁴⁾	Net Amount⁽⁵⁾
Derivatives:
Foreign exchange contracts	$	15,150	$	(8,081)	$	7,069	$	—	$	7,069
Interest rate contracts⁽⁶⁾	49		(4)		45		—		45
Other derivative contracts	182		—		182		—		182
Cash collateral and securities netting	NA		(837)		(837)		(557)		(1,394)
Total derivatives	15,381		(8,922)		6,459		(557)		5,902
Other financial instruments:
Repurchase agreements and securities lending⁽⁷⁾⁽⁸⁾	171,853		(159,977)		11,876		(10,793)		1,083
Total derivatives and other financial instruments	$	187,234	$	(168,899)	$	18,335	$	(11,350)	$	6,985

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

⁽²⁾Refer to Note 1 and Note 2 for additional information about the measurement basis of derivative instruments.

⁽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 $10.67 billion as of September 30, 2020 were $2.43 billion of repurchase agreements and $8.24 billion of collateral received related to securities lending transactions. Included in the $11.88 billion as of December 31, 2019 were $1.10 billion of repurchase agreements and $10.77 billion 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.

⁽⁸⁾ Offsetting of repurchase agreements primarily relates to our involvement in FICC, where we settle transactions on a net basis for payment and delivery through the Fedwire system.

^NANot applicable

Securities Sold and Securities Loaned Under Repurchase Agreements

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




	As of September 30, 2020														As of December 31, 2019
(In millions)	Overnight and Continuous		Up to 30 Days		Greater than 90 Days		Total		Overnight and Continuous		Up to 30 Days		Greater than 90 Days		Total
Repurchase agreements:
U.S. Treasury and agency securities	$	120,278	$	—	$	—	$	120,278	$	156,465	$	—	$	—	$	156,465
Total	120,278		—		—		120,278		156,465		—		—		156,465
Securities lending transactions:
US Treasury and agency securities	15		—		—		15		15		—		—		15
Corporate debt securities	128		—		—		128		354		—		—		354
Equity securities	7,846		29		934		8,809		7,389		—		130		7,519
Other⁽¹⁾	3,250		—		—		3,250		7,500		—		—		7,500
Total	11,239		29		934		12,202		15,258		—		130		15,388
Gross amount of recognized liabilities for repurchase agreements and securities lending	$	131,517	$	29	$	934	$	132,480	$	171,723	$	—	$	130	$	171,853

⁽¹⁾ Represents a security interest in underlying client assets related to our enhanced custody business, which assets clients have allowed us to transfer and re-pledge.