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Related Party Transactions (Tables)
9 Months Ended
Sep. 30, 2020
Related Party Transactions [Abstract]  
Summary of Related Party Transactions The following tables present related party balances and the income (expense) generated by related party transactions:
September 30, 2020December 31, 2019
 (in millions)
Assets:
Cash and due from banks$677 $850 
Interest bearing deposits with banks26 40 
Securities purchased under agreements to resell(1)
2,185 4,600 
Trading assets470 79 
Loans1,180 2,343 
Other(2)
360 456 
Total assets$4,898 $8,368 
Liabilities:
Deposits$18,397 $9,000 
Trading liabilities324 293 
Short-term borrowings949 1,166 
Long-term debt2,866 7,848 
Other(2)
194 931 
Total liabilities$22,730 $19,238 
(1)Reflects purchases of securities under which other HSBC affiliates have agreed to repurchase.
(2)Other assets and other liabilities primarily consist of derivative balances associated with hedging activities and other miscellaneous account receivables and payables.
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
 (in millions)
Income (Expense):
Interest income$9 $44 $47 $134 
Interest expense(77)(151)(276)(427)
Net interest expense(68)(107)(229)(293)
Trading revenue (expense)(1,755)551 (2,372)(972)
Servicing and other fees from HSBC affiliates:
HSBC Bank plc43 40 131 121 
HSBC Markets (USA) Inc. ("HMUS")27 27 84 84 
Other HSBC affiliates9 21 40 52 
Total servicing and other fees from HSBC affiliates79 88 255 257 
Gain (loss) on instruments designated at fair value and related derivatives307 98 (203)1,518 
Support services from HSBC affiliates:
HTSU(285)(274)(820)(849)
HMUS(17)(24)(63)(74)
Other HSBC affiliates(89)(96)(279)(262)
Total support services from HSBC affiliates(391)(394)(1,162)(1,185)
Rental income from HSBC affiliates, net(1)
13 16 31 40 
Stock based compensation expense(2)
(3)(6)(16)(20)
(1)We receive rental income from our affiliates, and in some cases pay rental expense to our affiliates, for rent on certain office space. Net rental income from our affiliates is recorded as a component of occupancy expense, net in our consolidated statement of income (loss).
(2)Employees may participate in one or more stock compensation plans sponsored by HSBC. These expenses are included in salaries and employee benefits in our consolidated statement of income (loss). Certain employees are also eligible to participate in a defined benefit pension plan and other postretirement plans sponsored by HSBC North America which are discussed in Note 12, "Pension and Other Postretirement Benefits."
Schedule of Assets by Related Party
At September 30, 2020 and December 31, 2019, we had the following loan balances outstanding with HSBC affiliates:
September 30, 2020December 31, 2019
 (in millions)
HMUS and subsidiaries$1,088 $2,296 
Other short-term affiliate lending92 47 
Total loans$1,180 $2,343