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Schedule HC-L: Derivatives and Off-Balance Sheet Items Guide

Form: FR Y-9C (Consolidated Financial Statements for Holding Companies) Schedule: HC-L - Derivatives and Off-Balance Sheet Items Frequency: Quarterly Purpose: Detail derivative positions (notional and fair value) and off-balance sheet exposures


Overview

Schedule HC-L is the primary schedule for derivatives reporting, providing: - Notional amounts by product type and asset class - Fair values (positive and negative) by asset class - Off-balance sheet commitments (unfunded commitments, letters of credit, etc.)

Key Distinction: Notional vs. Fair Value

Measure Definition Balance Sheet Impact
Notional Face/principal amount of contract None (off-balance sheet)
Fair Value Current mark-to-market value On balance sheet (HC-D Items 11/14)

Typical relationship: Fair Value << 5% of Notional


Schedule Structure

The current FR Y-9C HC-L is a single numbered schedule (items 1-15, plus memoranda). The CSV is keyed by line_number and column to reflect the official grid. Off-balance-sheet items come first (1-9); derivatives notional, totals, fair values, and credit exposure follow (7, 11-15).

OFF-BALANCE-SHEET (items 1-9)
├── 1. Unused commitments (1.a HELOC, 1.b credit cards, 1.c CRE/construction,
│        1.d underwriting, 1.e other incl. new 2026Q1 nondepository-FI breakout PV10-PV16)
├── 2. Financial standby letters of credit (+ 2.a conveyed)
├── 3. Performance standby letters of credit (+ 3.a conveyed)
├── 4. Commercial and similar letters of credit
├── 6. Securities lent (6.a) / borrowed (6.b)
├── 7. Credit derivatives (notional sold/bought, gross FV, by maturity & rating)
├── 8. Spot foreign exchange contracts
└── 9. All other off-balance-sheet items (+ itemized 9.a-9.f)

DERIVATIVES (items 11-15), columns A=Interest Rate, B=Foreign Exchange, C=Equity, D=Commodity/Other
├── 11. Notional by instrument (futures, forwards, options, swaps)
├── 12. Total gross notional held for trading
├── 13. Total gross notional held for purposes other than trading
├── 14. Gross positive/negative fair value (a = trading, b = non-trading) -> HC-D items 11/14
└── 15. OTC derivatives net current credit exposure (15.a) and fair value of collateral (15.b),
        columns A-E by counterparty type (banks/securities firms, monoline guarantors,
        hedge funds, sovereign governments, corporations and all other)

Part I: Derivatives - Notional Amounts

Interest Rate Derivatives

Product MDRM Call MDRM Description
Futures BHCK8693 RCFD8693 Exchange-traded IR futures
Forwards BHCK8697 RCFD8697 OTC IR forwards (FRAs)
Swaps BHCK3450 RCFD3450 Interest rate swaps
Options Written (Exchange) BHCK8701 RCFD8701 Sold IR options
Options Purchased (Exchange) BHCK8705 RCFD8705 Bought IR options
Options Written (OTC) BHCK8709 RCFD8709 Sold IR swaptions/caps
Options Purchased (OTC) BHCK8713 RCFD8713 Bought IR swaptions/caps

Interest Rate Swaps (BHCK3450): Largest category by notional; G-SIBs have $40-50 trillion each.

Foreign Exchange Derivatives

Product MDRM Call MDRM Description
Futures BHCK8694 RCFD8694 Exchange-traded FX futures
Forwards BHCK8698 RCFD8698 FX forwards (spots > 2 days)
Swaps BHCK3826 RCFD3826 Cross-currency swaps
Options Written (Exchange) BHCK8702 RCFD8702
Options Purchased (Exchange) BHCK8706 RCFD8706
Options Written (OTC) BHCK8710 RCFD8710
Options Purchased (OTC) BHCK8714 RCFD8714

Equity Derivatives

Product MDRM Call MDRM Description
Futures BHCK8695 RCFD8695 Index futures, single stock
Forwards BHCK8699 RCFD8699 Equity forwards
Swaps BHCK8719 RCFD8719 Total return swaps on equity
Options Written (Exchange) BHCK8703 RCFD8703
Options Purchased (Exchange) BHCK8707 RCFD8707
Options Written (OTC) BHCK8711 RCFD8711
Options Purchased (OTC) BHCK8715 RCFD8715

Commodity Derivatives

Product MDRM Call MDRM Description
Futures BHCK8696 RCFD8696 Oil, gold, agricultural
Forwards BHCK8700 RCFD8700 Commodity forwards
Swaps BHCK8720 RCFD8720 Commodity swaps
Options Written (Exchange) BHCK8704 RCFD8704
Options Purchased (Exchange) BHCK8708 RCFD8708
Options Written (OTC) BHCK8712 RCFD8712
Options Purchased (OTC) BHCK8716 RCFD8716

Credit Derivatives

Product Position MDRM Call MDRM
CDS Protection Sold (Guarantor) BHCKC968 RCFDC968
CDS Protection Bought (Beneficiary) BHCKC969 RCFDC969
TRS Protection Sold BHCKC970 RCFDC970
TRS Protection Bought BHCKC971 RCFDC971
Other Protection Sold BHCKC974 RCFDC974
Other Protection Bought BHCKC975 RCFDC975

Net CDS Position:

Net CDS Exposure = Protection Bought - Protection Sold
                 = BHCKC969 - BHCKC968
Positive = Net buyer of protection (hedged/risk-off)
Negative = Net seller of protection (risk-on)


Part I: Derivatives - Fair Values

Trading Derivatives - Positive Fair Value

Asset Class MDRM Call MDRM Links To
Interest Rate BHCK8733 RCFD8733 HC-D Item 11
Foreign Exchange BHCK8734 RCFD8734 HC-D Item 11
Equity BHCK8735 RCFD8735 HC-D Item 11
Commodity BHCK8736 RCFD8736 HC-D Item 11

Trading Derivatives - Negative Fair Value

Asset Class MDRM Call MDRM Links To
Interest Rate BHCK8737 RCFD8737 HC-D Item 14
Foreign Exchange BHCK8738 RCFD8738 HC-D Item 14
Equity BHCK8739 RCFD8739 HC-D Item 14
Commodity BHCK8740 RCFD8740 HC-D Item 14

Non-Trading Hedges - Positive Fair Value

Asset Class MDRM Call MDRM Links To
Interest Rate BHCK8741 RCFD8741 HC-D Item 11
Foreign Exchange BHCK8742 RCFD8742 HC-D Item 11
Equity BHCK8743 RCFD8743 HC-D Item 11
Commodity BHCK8744 RCFD8744 HC-D Item 11

Non-Trading Hedges - Negative Fair Value

Asset Class MDRM Call MDRM Links To
Interest Rate BHCK8745 RCFD8745 HC-D Item 14
Foreign Exchange BHCK8746 RCFD8746 HC-D Item 14
Equity BHCK8747 RCFD8747 HC-D Item 14
Commodity BHCK8748 RCFD8748 HC-D Item 14

Key Reconciliation Formulas

HC-D Derivative Assets (Item 11)

BHCM3543 (HC-D item 11) = Trading Positive FV + Non-Trading Positive FV
         = (BHCK8733 + BHCK8734 + BHCK8735 + BHCK8736)   [HC-L item 14.a.(1)]
         + (BHCK8741 + BHCK8742 + BHCK8743 + BHCK8744)   [HC-L item 14.b.(1)]

HC-D Derivative Liabilities (Item 14)

BHCK3547 (HC-D item 14) = Trading Negative FV + Non-Trading Negative FV
         = (BHCK8737 + BHCK8738 + BHCK8739 + BHCK8740)   [HC-L item 14.a.(2)]
         + (BHCK8745 + BHCK8746 + BHCK8747 + BHCK8748)   [HC-L item 14.b.(2)]

Part II: Off-Balance Sheet Items

Unused Commitments (item 1)

Line MDRM Description
1.a BHCK3814 Revolving open-end loans secured by 1-4 family residential (HELOCs)
1.b.(1) BHCKJ455 Unused consumer credit card lines
1.b.(2) BHCKJ456 Other unused credit card lines
1.c.(1) BHCK3816 Commitments to fund CRE/construction/land dev. secured by RE
1.c.(2) BHCK6550 Same, NOT secured by real estate
1.d BHCK3817 Securities underwriting
1.e.(1) BHCKJ457 Other unused commitments - C&I loans
1.e.(2) BHCKPV10 Loans to depository financial institutions (new 2026Q1)
1.e.(3) BHCKPV11 Loans to nondepository financial institutions (new 2026Q1; PV12-PV16 detail)
1.e.(4) BHCKJ459 All other unused commitments

Letters of Credit (items 2-4)

Line MDRM Description
2 BHCK6566 Financial standby letters of credit and foreign office guarantees
2.a BHCK3820 Amount conveyed to others
3 BHCK6570 Performance standby letters of credit and foreign office guarantees
3.a BHCK3822 Amount conveyed to others
4 BHCK3411 Commercial and similar letters of credit

Analytical Considerations

Notional to Fair Value Ratio

FV/Notional Ratio = Gross FV / Notional
Typical range: 0.5% - 3%

Higher ratio indicates:
- More market movement
- More seasoned portfolio
- Potential credit deterioration

Net Fair Value Position

Net Derivatives FV = Positive FV - Negative FV
                   = BHCM3543 - BHCK3547   (HC-D items 11 and 14)

Positive = Net derivative asset
Negative = Net derivative liability

Credit Derivative Position

Net CDS = Bought - Sold
Positive = Net protection buyer (risk-off)
Negative = Net protection seller (risk-on)

MDRM Quick Reference - Fair Values

Category Positive FV Negative FV
IR Trading BHCK8733 BHCK8737
FX Trading BHCK8734 BHCK8738
Equity Trading BHCK8735 BHCK8739
Commodity Trading BHCK8736 BHCK8740
IR Non-Trading BHCK8741 BHCK8745
FX Non-Trading BHCK8742 BHCK8746
Equity Non-Trading BHCK8743 BHCK8747
Commodity Non-Trading BHCK8744 BHCK8748


Item 15: OTC Derivatives Credit Exposure and Collateral

Item 15 is a counterparty-segmented grid. Columns A-E are: A = Banks and securities firms, B = Monoline financial guarantors, C = Hedge funds, D = Sovereign governments, E = Corporations and all other counterparties.

Line Description Code base (cols A-E)
15.a Net current credit exposure BHCKG418-G422
15.b.(1) Collateral - Cash (U.S. dollar) BHCKG423-G427
15.b.(2) Collateral - Cash (Other currencies) BHCKG428-G432
15.b.(3) Collateral - U.S. Treasury securities BHCKG433-G437
15.b.(4) Collateral - U.S. govt agency & GSE debt BHCKG438-G442
15.b.(5) Collateral - Corporate bonds BHCKG443-G447
15.b.(6) Collateral - Equity securities BHCKG448-G452
15.b.(7) Collateral - All other BHCKG453-G457
15.b.(8) Total fair value of collateral BHCKG458-G462

Codes are perfectly sequential (G418..G462); the monoline/sovereign columns (G419, G424, ..., G460) are absent from the field-spec PDF parse but were confirmed via MDRM captions and warehouse presence (2009-06-30 onward) per the FIELDSPEC_KNOWN_GAPS adjudication rule.


See also: Trading Activities Deep Dive for comprehensive HC-D and HC-L analysis

Last Updated: 2026-06-11 (v8 conceptual-accuracy sweep) Reference: FR Y-9C field spec (202603), MDRM, and FreeNIC warehouse