Notes to consolidated financial statements 194 JPMorgan Chase & Co. /2012 Annual Report To assess whether the Firm has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, the Firm considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities.
This assessment includes, first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities.
In general, the parties that make the most significant decisions affecting the VIE (such as asset managers, collateral managers, servicers, or owners of call options or liquidation rights over the VIE’s assets) or have the right to unilaterally remove those decision-makers are deemed to have the power to direct the activities of a VIE.
To assess whether the Firm has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Firm considers all of its economic interests, including debt and equity investments, servicing fees, and derivative or other arrangements deemed to be variable interests in the VIE.
This assessment requires that the Firm apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE.
Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by the Firm.
The Firm performs on-going reassessments of: (1) whether entities previously evaluated under the majority votinginterest framework have become VIEs, based on certain events, and therefore subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Firm’s involvement with a VIE cause the Firm’s consolidation conclusion to change.
In January 2010, the Financial Accounting Standards Board (“FASB”) issued an amendment which deferred the requirements of the accounting guidance for VIEs for certain investment funds, including mutual funds, private equity funds and hedge funds.
For the funds to which the deferral applies, the Firm continues to apply other existing authoritative accounting guidance to determine whether such funds should be consolidated.
Assets held for clients in an agency or fiduciary capacity by the Firm are not assets of JPMorgan Chase and are not included on the Consolidated Balance Sheets.
Use of estimates in the preparation of consolidated financial statements The preparation of the Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expense, and disclosures of contingent assets and liabilities.
Actual results could be different from these estimates.
Foreign currency translation JPMorgan Chase revalues assets, liabilities, revenue and expense denominated in non-U.
S.  currencies into U. S.  dollars using applicable exchange rates.
Gains and losses relating to translating functional currency financial statements for U. S.  reporting are included in other comprehensive income/(loss) (“OCI”) within stockholders’ equity.
Gains and losses relating to nonfunctional currency transactions, including non-U.
S.  operations where the functional currency is the U. S.  dollar, are reported in the Consolidated Statements of Income.
Statements of cash flows For JPMorgan Chase’s Consolidated Statements of Cash Flows, cash is defined as those amounts included in cash and due from banks.
Significant accounting policies The following table identifies JPMorgan Chase’s other significant accounting policies and the Note and page where a detailed description of each policy can be found.
## Table 0 ##
Notes to consolidated financial statements 184 JPMorgan Chase & Co. /2017 Annual Report Derivatives netting The following tables present, as of December 31, 2017 and 2016, gross and net derivative receivables and payables by contract and settlement type.
Derivative receivables and payables, as well as the related cash collateral from the same counterparty, have been netted on the Consolidated balance sheets where the Firm has obtained an appropriate legal opinion with respect to the master netting agreement.
Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the Consolidated balance sheets, and those derivative receivables and payables are shown separately in the tables below.
In addition to the cash collateral received and transferred that is presented on a net basis with derivative receivables and payables, the Firm receives and transfers additional collateral (financial instruments and cash).
These amounts mitigate counterparty credit risk associated with the Firm’s derivative instruments, but are not eligible for net presentation: ?
collateral that consists of non-cash financial instruments (generally U. S.  government and agency securities and other G7 government securities) and cash collateral held at third party custodians, which are shown separately as “Collateral not nettable on the Consolidated balance sheets” in the tables below, up to the fair value exposure amount.  ?
the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables below; and ?
collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables below.
## Table 1 ##
Net interest income excluding CIB’s Markets businesses In addition to reviewing net interest income on a managed basis, management also reviews net interest income excluding net interest income arising from CIB’s Markets businesses to assess the performance of the Firm’s lending, investing (including asset-liability management) and deposit-raising activities.
This net interest income is referred to as non-markets related net interest income.
CIB’s Markets businesses are Fixed Income Markets and Equity Markets.
Management believes that disclosure of non-markets related net interest income provides investors and analysts with another measure by which to analyze the non-markets-related business trends of the Firm and provides a comparable measure to other financial institutions that are primarily focused on lending, investing and deposit-raising activities.
The data presented below are non-GAAP financial measures due to the exclusion of markets related net interest income arising from CIB.
## Table 2 ##
(a) Interest includes the effect of related hedges.
Taxable-equivalent amounts are used where applicable.
(b) For a reconciliation of net interest income on a reported and managed basis, see reconciliation from the Firm’s reported U. S.  GAAP results to managed basis on page 52.
(c) The amounts in this table differ from the prior-period presentation to align with CIB’s Markets businesses.
For further information on CIB’s Markets businesses, see page 65.

<table><tr><td>Business changes and developments</td><td>Note 2</td><td>Page 195</td></tr><tr><td>Fair value measurement</td><td>Note 3</td><td>Page 196</td></tr><tr><td>Fair value option</td><td>Note 4</td><td>Page 214</td></tr><tr><td>Derivative instruments</td><td>Note 6</td><td>Page 218</td></tr><tr><td>Noninterest revenue</td><td>Note 7</td><td>Page 228</td></tr><tr><td>Interest income and interest expense</td><td>Note 8</td><td>Page 230</td></tr><tr><td>Pension and other postretirement employee benefit plans</td><td>Note 9</td><td>Page 231</td></tr><tr><td>Employee stock-based incentives</td><td>Note 10</td><td>Page 241</td></tr><tr><td>Securities</td><td>Note 12</td><td>Page 244</td></tr><tr><td>Securities financing activities</td><td>Note 13</td><td>Page 249</td></tr><tr><td>Loans</td><td>Note 14</td><td>Page 250</td></tr><tr><td>Allowance for credit losses</td><td>Note 15</td><td>Page 276</td></tr><tr><td>Variable interest entities</td><td>Note 16</td><td>Page 280</td></tr><tr><td>Goodwill and other intangible assets</td><td>Note 17</td><td>Page 291</td></tr><tr><td>Premises and equipment</td><td>Note 18</td><td>Page 296</td></tr><tr><td>Long-term debt</td><td>Note 21</td><td>Page 297</td></tr><tr><td>Income taxes</td><td>Note 26</td><td>Page 303</td></tr><tr><td>Off–balance sheet lending-related financial instruments, guarantees and other commitments</td><td>Note 29</td><td>Page 308</td></tr><tr><td>Litigation</td><td>Note 31</td><td>Page 316</td></tr></table>
<table><tr><td></td><td colspan="4">2017</td><td colspan="4">2016</td></tr><tr><td>December 31, (in millions)</td><td>Gross derivative receivables</td><td colspan="2">Amounts netted on the Consolidated balance sheets</td><td>Net derivative receivables</td><td>Gross derivative receivables</td><td colspan="2">Amounts netted on the Consolidated balance sheets</td><td>Net derivative receivables</td></tr><tr><td>U.S. GAAP nettable derivative receivables</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Interest rate contracts:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Over-the-counter (“OTC”)</td><td>$305,569</td><td>$-284,917</td><td></td><td>$20,652</td><td>$365,227</td><td>$-342,173</td><td></td><td>$23,054</td></tr><tr><td>OTC–cleared</td><td>6,531</td><td>-6,318</td><td></td><td>213</td><td>235,399</td><td>-235,261</td><td></td><td>138</td></tr><tr><td>Exchange-traded<sup>(a)</sup></td><td>185</td><td>-84</td><td></td><td>101</td><td>241</td><td>-227</td><td></td><td>14</td></tr><tr><td>Total interest rate contracts</td><td>312,285</td><td>-291,319</td><td></td><td>20,966</td><td>600,867</td><td>-577,661</td><td></td><td>23,206</td></tr><tr><td>Credit contracts:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>OTC</td><td>15,390</td><td>-15,165</td><td></td><td>225</td><td>23,130</td><td>-22,612</td><td></td><td>518</td></tr><tr><td>OTC–cleared</td><td>7,225</td><td>-7,170</td><td></td><td>55</td><td>5,746</td><td>-5,739</td><td></td><td>7</td></tr><tr><td>Total credit contracts</td><td>22,615</td><td>-22,335</td><td></td><td>280</td><td>28,876</td><td>-28,351</td><td></td><td>525</td></tr><tr><td>Foreign exchange contracts:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>OTC</td><td>155,289</td><td>-142,420</td><td></td><td>12,869</td><td>226,271</td><td>-208,962</td><td></td><td>17,309</td></tr><tr><td>OTC–cleared</td><td>1,696</td><td>-1,654</td><td></td><td>42</td><td>1,238</td><td>-1,165</td><td></td><td>73</td></tr><tr><td>Exchange-traded<sup>(a)</sup></td><td>141</td><td>-7</td><td></td><td>134</td><td>104</td><td>-27</td><td></td><td>77</td></tr><tr><td>Total foreign exchange contracts</td><td>157,126</td><td>-144,081</td><td></td><td>13,045</td><td>227,613</td><td>-210,154</td><td></td><td>17,459</td></tr><tr><td>Equity contracts:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>OTC</td><td>22,024</td><td>-19,917</td><td></td><td>2,107</td><td>20,868</td><td>-20,570</td><td></td><td>298</td></tr><tr><td>Exchange-traded<sup>(a)</sup></td><td>14,188</td><td>-12,241</td><td></td><td>1,947</td><td>11,439</td><td>-9,431</td><td></td><td>2,008</td></tr><tr><td>Total equity contracts</td><td>36,212</td><td>-32,158</td><td></td><td>4,054</td><td>32,307</td><td>-30,001</td><td></td><td>2,306</td></tr><tr><td>Commodity contracts:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>OTC</td><td>10,903</td><td>-4,436</td><td></td><td>6,467</td><td>11,571</td><td>-5,605</td><td></td><td>5,966</td></tr><tr><td>Exchange-traded<sup>(a)</sup></td><td>8,854</td><td>-8,701</td><td></td><td>153</td><td>6,794</td><td>-6,766</td><td></td><td>28</td></tr><tr><td>Total commodity contracts</td><td>19,757</td><td>-13,137</td><td></td><td>6,620</td><td>18,365</td><td>-12,371</td><td></td><td>5,994</td></tr><tr><td>Derivative receivables with appropriate legal opinion</td><td>547,995</td><td>-503,030</td><td><sup>(b)</sup></td><td>44,965</td><td>908,028</td><td>-858,538</td><td><sup>(b)</sup></td><td>49,490</td></tr><tr><td>Derivative receivables where an appropriate legal opinion has not been either sought or obtained</td><td>11,558</td><td></td><td></td><td>11,558</td><td>14,588</td><td></td><td></td><td>14,588</td></tr><tr><td>Total derivative receivables recognized on the Consolidated balance sheets</td><td>$559,553</td><td></td><td></td><td>$56,523</td><td>$922,616</td><td></td><td></td><td>$64,078</td></tr><tr><td>Collateral not nettable on the Consolidated balance sheets<sup>(c)(d)</sup></td><td></td><td></td><td></td><td>-13,363</td><td></td><td></td><td></td><td>-18,638</td></tr><tr><td>Net amounts</td><td></td><td></td><td></td><td>$43,160</td><td></td><td></td><td></td><td>$45,440</td></tr></table>
<table><tr><td>Year ended December 31,(in millions, except rates)</td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Net interest income – managed basis<sup>(a)(b)</sup></td><td>$51,410</td><td>$47,292</td><td>$44,620</td></tr><tr><td>Less: CIB Markets net interest income<sup>(c)</sup></td><td>4,630</td><td>6,334</td><td>5,298</td></tr><tr><td>Net interest income excluding CIB Markets<sup>(a)</sup></td><td>$46,780</td><td>$40,958</td><td>$39,322</td></tr><tr><td>Average interest-earning assets</td><td>$2,180,592</td><td>$2,101,604</td><td>$2,088,242</td></tr><tr><td>Less: Average CIB Markets interest-earning assets<sup>(c)</sup></td><td>540,835</td><td>520,307</td><td>510,292</td></tr><tr><td>Average interest-earning assets excluding CIB Markets</td><td>$1,639,757</td><td>$1,581,297</td><td>$1,577,950</td></tr><tr><td>Net interest yield on average interest-earning assets – managed basis</td><td>2.36%</td><td>2.25%</td><td>2.14%</td></tr><tr><td>Net interest yield on average CIB Markets interest-earning assets<sup>(c)</sup></td><td>0.86</td><td>1.22</td><td>1.04</td></tr><tr><td>Net interest yield on average interest-earning assets excluding CIB Markets</td><td>2.85%</td><td>2.59%</td><td>2.49%</td></tr></table>

Question: Which year is Exchange-traded(a) for Gross derivative receivables the highest?
Answer: 2016