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A derivative is a financial contract whose value is derived from the performance of underlying market factors, such as interest rates, currency exchange rates, and commodity, credit, and equity prices. Derivative transactions include an assortment of financial contracts, including structured debt obligations and deposits, swaps, futures, options, caps, floors, collars, forwards, and various combinations thereof.

Each quarter, based on information from the Reports of Condition and Income (call reports) filed by all insured U.S. commercial banks and trust companies as well as other published financial data, the OCC prepares the Quarterly Report on Bank Derivatives Activities. That report describes what the call report information discloses about banks' derivative activities.

See also Accounting

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Risk Management of Financial Derivatives (Comptroller's Handbook, January 1997)

Responses to requests for a transition period under section 716(f) of the Dodd-Frank Act - June 11, 2013

Credit Derivatives – Guidelines for National Banks (OCC 1996-43, August 1996); Risk Management of Financial Derivatives (BC 277, November 1993)
Covers supervisory guidance on issues related to bank participation in the developing market for credit derivatives

FAS 133 Accounting for Derivatives (OCC 1999-1, January 1999); Interim Guidance
Covers the requirement to record derivatives on the balance sheet as assets or liabilities at their fair value

Risk Management of Financial Derivatives and Bank Trading Activities (OCC 1999-2, January 1999, Supplemental Guidance)
Summarizes key lessons learned and fundamental control issues reaffirmed by financial institutions' experience since mid-1997

Comptroller Speeches:

Federal Deposit Insurance Corporation's Board of Directors (May 11, 2010)
Comptroller discusses a proposed rule on bank securitizations.

Institute of International Bankers (March 1, 2010)
Comptroller identifies the central challenge for bank regulators over the coming year to be striking the right balance between capital and credit availability.

Institute of International Bankers (March 3, 2008)
Comptroller discusses efforts to improve bank and regulatory practices pertaining to collateralized debt obligations and credit default swaps.

Global Association of Risk Professionals (February 27, 2008)
Comptroller discusses credit market disruptions involving asset-backed securities, tranches, credit default swaps, and credit rating agencies.

New York Bankers Association (November 10, 2006)
Comptroller tells bankers that managing risk in derivatives markets is essential to maintain public confidence in nation's financial institutions.

Related News and Issuances
Publish DateIdentifierTitle
06/18/2019  NR 2019-67, OCC Reports First Quarter 2019 Bank Trading Revenue
12/21/2018  NR 2018-144, Agencies Invite Comment on a Proposal to Exclude Community Banks from the Volcker Rule
12/17/2018  OCC 2018-45, Capital: Notice of Proposed Rulemaking