Quarterly Report on Bank Trading and Derivatives Activities: 4th Quarter

This report provides a comprehensive overview of U.S. banks’ trading and derivatives activity for the fourth quarter of 2024. It highlights a 10.6% decline in trading revenue from the prior quarter, driven by drops in interest rate and equity instruments. The report also delves into counterparty credit risk, market risk (including Value-at-Risk and volatility trends), and the shifting composition of centrally cleared derivative contracts. With notional derivatives falling to $186.5 trillion and growing scrutiny on collateral and net credit exposure, this update serves as a key indicator of systemic financial risk and evolving regulatory landscapes.