FOR IMMEDIATE RELEASE
January 4, 2017
Contact: William Grassano
OCC Reports Bank Trading Revenue Fell in the Third Quarter 2016
WASHINGTON — Trading revenue of U.S. commercial banks and savings associations fell to $6.4 billion in the third quarter of 2016 from $7 billion in the previous quarter, the Office of the Comptroller of the Currency (OCC) reported in its Quarterly Report on Bank Trading and Derivatives Activities.
The OCC report showed trading revenue in the third quarter of 2016 decreased nearly 9 percent. The drop in third quarter trading revenue reflects a decline in combined interest rate and foreign exchange revenue. However, compared with the third quarter of 2015, trading revenue increased by $1.1 billion or nearly 20 percent. Trading results for the second and third quarter of 2016 were the second highest ever reported for each respective quarter since 2000.
The OCC reported:
The notional amount of derivatives held by insured U.S. commercial banks declined by $12.4 trillion to $177.5 trillion, or nearly 6.5 percent, during the third quarter. The decrease is attributed to trade compression, a process that aggregates a large number of swap contracts with similar attributes, like risk or cash flows, into fewer trades.
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