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Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
The following table presents the aggregate contractual, or notional, amounts of derivative financial instruments including those entered into for trading and asset-and-liability management activities as of the dates indicated:
(In millions)December 31, 2021December 31, 2020
Derivatives not designated as hedging instruments:
Interest rate contracts:
Futures$9,604 $2,842 
Foreign exchange contracts:
Forward, swap and spot2,569,449 2,640,989 
Options purchased328 946 
Options written210 661 
Futures2,359 1,980 
Other:
Stable value contracts(1)
32,868 32,359 
Deferred value awards(2)
308 332 
Derivatives designated as hedging instruments:
Interest rate contracts:
Swap agreements15,100 7,449 
Foreign exchange contracts:
Forward and swap6,700 5,221 
(1) The notional value of the stable value contracts represents our maximum exposure. However, exposure to various stable value contracts is generally contractually limited to substantially lower amounts than the notional values.
(2) Represents grants of deferred value awards to employees; refer to discussion in this note under "Derivatives Not Designated as Hedging Instruments."
Schedule of Derivative Assets at Fair Value
The following table presents the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 11.
Derivative Assets(1)
Derivative Liabilities(2)
(In millions)December 31, 2021December 31, 2020December 31, 2021December 31, 2020
Derivatives not designated as hedging instruments:
Foreign exchange contracts$15,126 $25,939 $15,790 $25,811 
Other derivative contracts— — 301 157 
Total$15,126 $25,939 $16,091 $25,968 
Derivatives designated as hedging instruments:
Foreign exchange contracts$59 $4 $35 $116 
Interest rate contracts2 1 — 42 
Total$61 $5 $35 $158 
(1) Derivative assets are included within other assets in our consolidated statement of condition.
(2) Derivative liabilities are included within other liabilities in our consolidated statement of condition.
Schedule of Derivative Liabilities at Fair Value
The following table presents the fair value of derivative financial instruments, excluding the impact of master netting agreements, recorded in our consolidated statement of condition as of the dates indicated. The impact of master netting agreements is provided in Note 11.
Derivative Assets(1)
Derivative Liabilities(2)
(In millions)December 31, 2021December 31, 2020December 31, 2021December 31, 2020
Derivatives not designated as hedging instruments:
Foreign exchange contracts$15,126 $25,939 $15,790 $25,811 
Other derivative contracts— — 301 157 
Total$15,126 $25,939 $16,091 $25,968 
Derivatives designated as hedging instruments:
Foreign exchange contracts$59 $4 $35 $116 
Interest rate contracts2 1 — 42 
Total$61 $5 $35 $158 
(1) Derivative assets are included within other assets in our consolidated statement of condition.
(2) Derivative liabilities are included within other liabilities in our consolidated statement of condition.
Impact of Derivative Financial Instruments On Statement of Income
The following table presents the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:
Years Ended December 31,
202120202019
(In millions)
Location of Gain (Loss) on
Derivative in Consolidated
Statement of Income
Amount of Gain (Loss) on Derivative Recognized in Consolidated Statement of Income
Derivatives not designated as hedging instruments:
Foreign exchange contractsForeign exchange trading services revenue$811 $922 $630 
Foreign exchange contractsInterest expense68 63 (153)
Interest rate contractsForeign exchange trading services revenue3 3 (3)
Other derivative contracts(1)
Compensation and employee benefits(332)(189)(205)
Total$550 $799 $269 
(1) Amount in 2021 reflects a deferred compensation expense acceleration of $147 million associated with an amendment of certain outstanding cash settled deferred incentive compensation awards.
The following tables present the impact of our use of derivative financial instruments on our consolidated statement of income for the periods indicated:
Years Ended December 31,Years Ended December 31,
202120202019202120202019
(In millions)
Location of Gain (Loss) on Derivative in Consolidated Statement of Income
Amount of Gain
(Loss) on Derivative
Recognized in
Consolidated
Statement of Income
Hedged Item in Fair Value Hedging Relationship
Location of Gain (Loss) on Hedged Item in Consolidated Statement of Income
Amount of Gain
(Loss) on Hedged
Item Recognized in
Consolidated
Statement of Income
Derivatives designated as fair value hedges:
Interest rate contractsNet interest income$14 $1 $(4)
Available-for-sale securities(1)
Net interest income
$(19)$(4)$2 
Interest rate contractsNet interest income(76)566 266 Long-term debtNet interest income75 (559)(255)
Total$(62)$567 $262 $56 $(563)$(253)
(1) In 2021, 2020 and 2019, $16 million, $3 million and $18 million, respectively, of net unrealized gains on AFS investment securities designated in fair value hedges was recognized in OCI.
Years Ended December 31,Years Ended December 31,
202120202019Location of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income202120202019
(In millions)Amount of Gain or (Loss) Recognized in Other Comprehensive Income on DerivativeAmount of Gain or (Loss) Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives designated as cash flow hedges:
Interest rate contracts$(78)$176 $8 Net interest income$84 $49 $(10)
Foreign exchange contracts91 (22)43 Net interest income11 23 27 
Total derivatives designated as cash flow hedges$13 $154 $51 $95 $72 $17 
Derivatives designated as net investment hedges:
Foreign exchange contracts$272 $(250)$30 Gains (Losses) related to investment securities, net$— $— $— 
Total derivatives designated as net investment hedges272 (250)30 — — — 
Total$285 $(96)$81 $95 $72 $17 
Schedule of Outstanding Hedges: (Notional Amount)
The following tables show the carrying amount and associated cumulative basis adjustments related to the application of hedge accounting that is included in the carrying amount of hedged assets and liabilities in fair value hedging relationships:
December 31, 2021
Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the carrying amount
(In millions)
Carrying Amount of Hedged Assets/LiabilitiesActive
De-designated(1)
Long-term debt$9,026 $(64)$514 
Available-for-sale securities3,551 — 24 
December 31, 2020
Cumulative Fair Value Hedging Adjustment Increasing (Decreasing) the carrying amount
(In millions)Carrying Amount of Hedged Assets/LiabilitiesActive
De-designated(1)
Long-term debt$10,519 $3 $688 
Available-for-sale securities2,330 2 43 
(1) Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date.