187 JPMorgan Chase & Co./2020 Form 10-K During the year ended December 31, 2019, significant transfers from level 3 into level 2 included the following: Gains and losses The following describes significant components of total realized/unrealized gains/(losses) for instruments measured at fair value on a recurring basis for the years ended December 31, 2020, 2019 and 2018. These amounts exclude any effects of the Firm’s risk management activities where the financial instruments are classified as level 1 and 2 of the fair value hierarchy. Refer to Changes in level 3 recurring fair value measurements rollforward tables on pages 182- 186 for further information on these instruments. During the year ended December 31, 2018, significant transfers from level 2 into level 3 included the following: During the year ended December 31, 2018, significant transfers from level 3 into level 2 included the following: All transfers are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur. 2018 2019 2020 • $1.5 billion of total debt and equity instruments, the majority of which were obligations of U.S. states and municipalities and trading loans, driven by an increase in observability. • $1.1 billion of gross equity derivative receivables and $1.3 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs. • $962 million of gross commodities derivative payables as a result of an increase in observability. • $1.2 billion of deposits as a result of an increase in observability and a decrease in the significance of unobservable inputs. • $1.4 billion of long-term debt as a result of an increase in observability and a decrease in the significance of unobservable inputs. • $1.4 billion of total debt and equity instruments, the majority of which were trading loans, driven by a decrease in observability. • $1.0 billion of gross equity derivative receivables and $1.6 billion of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs. • $1.1 billion of long-term debt driven by a decrease in observability and an increase in the significance of unobservable inputs for certain structured notes. • $1.5 billion of total debt and equity instruments, the majority of which were trading loans, driven by an increase in observability. • $1.2 billion of gross equity derivative receivables and $1.5 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs. • $1.6 billion of net gains on liabilities largely driven by market movements in long-term debt. • $10 million of net gains on assets driven by gains in net interest rate derivative receivables due to market movements largely offset by losses in MSRs reflecting faster prepayment speeds on lower rates. Refer to Note 15 for additional information on MSRs. • $102 million of net gains on liabilities driven by market movements in short-term borrowings. • $2.1 billion of net losses on assets largely due to MSRs reflecting faster prepayment speeds on lower rates. Refer to Note 15 for additional information on MSRs. • $3.3 billion of net losses on liabilities predominantly driven by market movements in long-term debt.