Commercial banks reported total trading revenue of $6.4 billion in the third quarter of 2016, down from $7 billion in the previous quarter, according to the OCC’s Quarterly Report on Bank Trading and Derivatives Activities. Trading revenue decreased 9% from the second quarter of 2016, largely due to a decline in combined interest rate and foreign exchange revenue, the OCC said. Despite this decrease, however, trading revenue was up 20% year-on-year.
The net current credit exposure decreased $24 billion, or 4.7% in the third quarter, the report said. The notional amount of derivatives held by banks decreased $12.4 trillion to total $177.5 trillion.
Read the report.