• U.S. commercial banks generated $2.3 billion in revenues trading cash and derivative instruments in the third quarter of 2007, down 62% from the $6.2 billion reported in the second quarter. This decline is attributed largely to the difficult trading environment in credit markets.
• Net Current Credit Exposure increased $53 billion, or 27% from the prior quarter, to $252 billion.
• The notional amount of derivatives held by U.S. commercial banks increased $19.7 trillion to $172.2 trillion in the third quarter, 13% higher than in the second quarter. Bank derivative contracts remain concentrated in interest rate products, which represent 81% of total notionals.
• The notional amount of credit derivatives, the fastest growing product in the derivatives market, increased 19% from the second quarter to $14 trillion. Credit default swaps represent 98% of the total amount of credit derivatives.

→ OCC’s Quarterly Report on Bank Derivatives Activities Third Quarter 2007