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Derivatives (Tables)
 6 Months Ended
Jun. 30, 2013
Derivative Instrument Detail [Abstract]  
Derivative Contracts
The following table summarizes the fair values of derivative contracts recorded as “derivative contracts” assets and liabilities in the balance sheet at June 30, 2013 (in thousands):
 
 
Assets
 
 
Notional1
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
16,351,395

 
$
545,290

 
$
(268,087
)
 
$
277,203

 
$
—

 
$
277,203

Interest rate swaps
 
1,381,836

 
51,745

 
—

 
51,745

 
—

 
51,745

Energy contracts
 
1,501,959

 
65,414

 
(35,376
)
 
30,038

 
(2,537
)
 
27,501

Agricultural contracts
 
207,439

 
5,871

 
(4,658
)
 
1,213

 
—

 
1,213

Foreign exchange contracts
 
177,643

 
177,643

 
—

 
177,643

 
—

 
177,643

Equity option contracts
 
211,595

 
13,469

 
—

 
13,469

 
(2,568
)
 
10,901

Total customer risk management programs
 
19,831,867

 
859,432

 
(308,121
)
 
551,311

 
(5,105
)
 
546,206

Interest rate risk management programs
 
—

 
—

 
—

 
—

 
—

 
—

Total derivative contracts
 
$
19,831,867

 
$
859,432

 
$
(308,121
)
 
$
551,311

 
$
(5,105
)
 
$
546,206

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
Notional¹
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
16,439,531

 
$
540,540

 
$
(268,087
)
 
$
272,453

 
$
—

 
$
272,453

Interest rate swaps
 
1,381,836

 
52,095

 
—

 
52,095

 
(19,381
)
 
32,714

Energy contracts
 
1,441,957

 
63,515

 
(35,376
)
 
28,139

 
(5,865
)
 
22,274

Agricultural contracts
 
207,329

 
5,824

 
(4,658
)
 
1,166

 
—

 
1,166

Foreign exchange contracts
 
177,187

 
177,187

 
—

 
177,187

 
—

 
177,187

Equity option contracts
 
211,595

 
13,469

 
—

 
13,469

 
—

 
13,469

Total customer risk management programs
 
19,859,435

 
852,630

 
(308,121
)
 
544,509

 
(25,246
)
 
519,263

Interest rate risk management programs
 
47,000

 
2,728

 
—

 
2,728

 
—

 
2,728

Total derivative contracts
 
$
19,906,435

 
$
855,358

 
$
(308,121
)
 
$
547,237

 
$
(25,246
)
 
$
521,991

1 
Notional amounts for commodity contracts are converted into dollar-equivalent amounts based on dollar prices at the inception of the contract.


The following table summarizes the fair values of derivative contracts recorded as “derivative contracts” assets and liabilities in the balance sheet at December 31, 2012 (in thousands):

 
 
Assets
 
 
Notional
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
12,850,805

 
$
46,113

 
$
(15,656
)
 
$
30,457

 
$
—

 
$
30,457

Interest rate swaps
 
1,319,827

 
72,201

 
—

 
72,201

 
—

 
72,201

Energy contracts
 
1,346,780

 
82,349

 
(44,485
)
 
37,864

 
(3,464
)
 
34,400

Agricultural contracts
 
212,434

 
3,638

 
(3,164
)
 
474

 
—

 
474

Foreign exchange contracts
 
180,318

 
180,318

 
—

 
180,318

 
—

 
180,318

Equity option contracts
 
211,941

 
12,593

 
—

 
12,593

 
—

 
12,593

Total customer risk management programs
 
16,122,105

 
397,212

 
(63,305
)
 
333,907

 
(3,464
)
 
330,443

Interest rate risk management programs
 
66,000

 
7,663

 
—

 
7,663

 
—

 
7,663

Total derivative contracts
 
$
16,188,105

 
$
404,875

 
$
(63,305
)
 
$
341,570

 
$
(3,464
)
 
$
338,106

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
Notional
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
13,239,078

 
$
43,064

 
$
(15,656
)
 
$
27,408

 
$
(15,467
)
 
$
11,941

Interest rate swaps
 
1,319,827

 
72,724

 
—

 
72,724

 
(31,945
)
 
40,779

Energy contracts
 
1,334,349

 
83,654

 
(44,485
)
 
39,169

 
(1,769
)
 
37,400

Agricultural contracts
 
212,135

 
3,571

 
(3,164
)
 
407

 
(188
)
 
219

Foreign exchange contracts
 
179,852

 
179,852

 
—

 
179,852

 
—

 
179,852

Equity option contracts
 
211,941

 
12,593

 
—

 
12,593

 
—

 
12,593

Total customer risk management programs
 
16,497,182

 
395,458

 
(63,305
)
 
332,153

 
(49,369
)
 
282,784

Interest rate risk management programs
 
50,000

 
805

 
—

 
805

 
—

 
805

Total derivative contracts
 
$
16,547,182

 
$
396,263

 
$
(63,305
)
 
$
332,958

 
$
(49,369
)
 
$
283,589

1 
Notional amounts for commodity contracts are converted into dollar-equivalent amounts based on dollar prices at the inception of the contract.




The following table summarizes the fair values of derivative contracts recorded as “derivative contracts” assets and liabilities in the balance sheet at June 30, 2012 (in thousands):
 
 
Assets
 
 
Notional1
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
13,724,514

 
$
144,158

 
$
(39,377
)
 
$
104,781

 
$
—

 
$
104,781

Interest rate swaps
 
1,271,138

 
77,121

 
—

 
77,121

 
—

 
77,121

Energy contracts
 
1,667,819

 
150,754

 
(75,129
)
 
75,625

 
(50,622
)
 
25,003

Agricultural contracts
 
140,722

 
4,655

 
(3,530
)
 
1,125

 
—

 
1,125

Foreign exchange contracts
 
136,815

 
136,815

 
—

 
136,815

 
—

 
136,815

Equity option contracts
 
218,149

 
13,726

 
—

 
13,726

 
—

 
13,726

Total customer risk management programs
 
17,159,157

 
527,229

 
(118,036
)
 
409,193

 
(50,622
)
 
358,571

Interest rate risk management programs
 
66,000

 
7,633

 
—

 
7,633

 
—

 
7,633

Total derivative contracts
 
$
17,225,157

 
$
534,862

 
$
(118,036
)
 
$
416,826

 
$
(50,622
)
 
$
366,204

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
Notional1
 
Gross Fair Value
 
Netting Adjustments
 
Net Fair Value Before Cash Collateral
 
Cash Collateral
 
Fair Value Net of Cash Collateral
Customer risk management programs:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
13,579,184

 
$
140,873

 
$
(39,377
)
 
$
101,496

 
$
—

 
$
101,496

Interest rate swaps
 
1,271,138

 
77,671

 
—

 
77,671

 
(29,090
)
 
48,581

Energy contracts
 
1,653,592

 
156,690

 
(75,129
)
 
81,561

 
(13,246
)
 
68,315

Agricultural contracts
 
140,255

 
4,604

 
(3,530
)
 
1,074

 
(223
)
 
851

Foreign exchange contracts
 
136,483

 
136,483

 
—

 
136,483

 
—

 
136,483

Equity option contracts
 
218,149

 
13,726

 
—

 
13,726

 
—

 
13,726

Total customer risk management programs
 
16,998,801

 
530,047

 
(118,036
)
 
412,011

 
(42,559
)
 
369,452

Interest rate risk management programs
 
25,000

 
601

 
—

 
601

 
—

 
601

Total derivative contracts
 
$
17,023,801

 
$
530,648

 
$
(118,036
)
 
$
412,612

 
$
(42,559
)
 
$
370,053

1 
Notional amounts for commodity contracts are converted into dollar-equivalent amounts based on dollar prices at the inception of the contract.
Derivative Instruments, Gain (Loss) in Statement of Financial Performance
The following summarizes the pre-tax net gains (losses) on derivative instruments and where they are recorded in the income statement (in thousands):
 
 
Three Months Ended
 
 
June 30, 2013
 
June 30, 2012
 
 
Brokerage
and Trading Revenue
 
Gain (Loss)
on Derivatives, Net
 
Brokerage
and Trading
Revenue
 
Gain (Loss)
on Derivatives,
Net
Customer Risk Management Programs:
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
1,716

 
$
—

 
$
186

 
$
—

Interest rate swaps
 
768

 
—

 
1,231

 
—

Energy contracts
 
2,436

 
—

 
2,588

 
—

Agricultural contracts
 
77

 
—

 
92

 
—

Foreign exchange contracts
 
172

 
—

 
125

 
—

Equity option contracts
 
—

 
—

 
—

 
—

Total customer risk management programs
 
5,169

 
—

 
4,222

 
—

Interest Rate Risk Management Programs
 
—

 
(2,527
)
 
—

 
2,345

Total Derivative Contracts
 
$
5,169

 
$
(2,527
)
 
$
4,222

 
$
2,345


 
 
Six Months Ended
 
 
June 30, 2013
 
June 30, 2012
 
 
Brokerage
and Trading Revenue
 
Gain (Loss)
on Derivatives, Net
 
Brokerage
and Trading
Revenue
 
Gain (Loss)
on Derivatives,
Net
Customer Risk Management Programs:
 
 
 
 
 
 
 
 
Interest rate contracts
 
 
 
 
 
 
 
 
To-be-announced residential mortgage-backed securities
 
$
1,701

 
$
—

 
$
1,307

 
$
—

Interest rate swaps
 
1,535

 
—

 
2,144

 
—

Energy contracts
 
4,219

 
—

 
4,898

 
—

Agricultural contracts
 
185

 
—

 
183

 
—

Foreign exchange contracts
 
360

 
—

 
331

 
—

Equity option contracts
 
—

 
—

 
—

 
—

Total customer risk management programs
 
8,000

 
—

 
8,863

 
—

Interest Rate Risk Management Programs
 
—

 
(3,468
)
 
—

 
(128
)
Total Derivative Contracts
 
$
8,000

 
$
(3,468
)
 
$
8,863

 
$
(128
)