FOR IMMEDIATE RELEASE
October 4, 2016
Contact: William Grassano
OCC Reports Bank Trading Revenue Increased in the Second Quarter 2016
WASHINGTON — Trading revenue of U.S. commercial banks and savings associations rose to $6.9 billion in the second quarter of 2016 from $5.8 billion in the previous quarter, and $5.5 billion in the second quarter a year earlier, 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 second quarter of this year increased by 19.5 percent from the first quarter and by 25 percent from a year ago. The increase in second quarter trading revenue reflects an increase in combined interest rate and foreign exchange revenue.
The notional amount of derivatives held by insured U.S. commercial banks declined by $3.1 trillion, or 1.6 percent, during the second quarter falling to $189.8 trillion. 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.
The OCC also reported:
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