Citigroup Overtakes JPMorgan as Top U.S. Derivatives Dealer

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Citigroup Inc. overtook JPMorgan Chase & Co. to become the largest derivatives dealer in the U.S.

The firm’s derivative contracts as measured on a notional basis were $56.6 trillion at the end of the first quarter, according to data compiled by the Office of the Comptroller of the Currency and released Monday. JPMorgan ranked second with $56.2 trillion and Goldman Sachs Group Inc. third with $52 trillion.

Citigroup has been expanding in derivatives as it rebuilds trading businesses that suffered after the financial crisis led the firm to take a government bailout. The U.S. lender has amassed the largest stockpile of interest-rate swaps, a type of derivative that can swing in value when central banks change rates.

JPMorgan’s contracts totaled $63.6 trillion at the end of December, while Citigroup’s tally was $60 trillion, according to the OCC. Goldman Sachs reported $57.3 trillion.

Citigroup has said it’s pursued a risk-managed expansion off of a low base to bring the firm in line with competitors. Chief Financial Officer John Gerspach has said the New York-based bank doesn’t consider notional values to be an accurate gauge of risk.

Mark Costiglio, a spokesman for Citigroup, declined to comment on the OCC report.

Revenue from market-making in interest-rate derivatives and bonds at Goldman Sachs fell $2.5 billion in the three months ending March 31, extending its losses to a third quarter.

(An earlier version of this story was corrected to show that Citigroup contracts didn’t increase in the first quarter.)

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