Financial Assets And Financial Liabilities (Tables)

9 Months Ended

Sep. 30, 2018

Financial Assets And Financial Liabilities [Abstract]



	Financial Assets At Fair Value as of September 30, 2018

	Level 1		Level 2		Level 3		Total

	(in millions)
Securities segregated for regulatory purposes	$	4,098	$	—	$	—	$	4,098
Financial instruments owned, at fair value
Stocks		632		—		1		633
Options		1,720		—		—		1,720
Warrants		—		—		—		—
U.S. and foreign government securities		230		—		—		230
Corporate and municipal bonds		—		2		3		5
Currency forward contracts		—		—		—		—
Total financial instruments owned, at fair value		2,582		2		4		2,588
Total financial assets at fair value	$	6,680	$	2	$	4	$	6,686



	Financial Liabilities At Fair Value as of September 30, 2018
	Level 1		Level 2		Level 3		Total

	(in millions)
Financial instruments sold, but not yet purchased, at fair value
Stocks	$	215	$	—	$	—	$	215
Options		689		—		—		689
Currency forward contracts		—		11		—		11
Total financial instruments sold, but not yet purchased, at fair value		904		11		—		915
Total financial liabilities at fair value	$	904	$	11	$	—	$	915




	Financial Assets At Fair Value as of December 31, 2017
	Level 1		Level 2		Level 3		Total

	(in millions)
Securities segregated for regulatory purposes	$	4,519	$	—	$	—	$	4,519
Financial instruments owned, at fair value
Stocks		2,000		—		1		2,001
Options		1,052		—		—		1,052
Warrants		5		—		—		5
U.S. and foreign government securities		60		—		—		60
Corporate and municipal bonds		—		1		3		4
Currency forward contracts		—		32		—		32
Total financial instruments owned, at fair value		3,117		33		4		3,154
Total financial assets at fair value	$	7,636	$	33	$	4	$	7,673



	Financial Liabilities At Fair Value as of December 31, 2017
	Level 1		Level 2		Level 3		Total

	(in millions)
Financial instruments sold, but not yet purchased, at fair value
Stocks	$	302	$	—	$	—	$	302
Options		464		—		—		464
Currency forward contracts		—		1		—		1
Total financial instruments sold, but not yet purchased, at fair value		766		1		—		767
Total financial liabilities at fair value	$	766	$	1	$	—	$	767

Trading Gains From Market Making Transactions



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(in millions)
Equities	$	7	$	9	$	32	$	29
Foreign exchange		—		2		—		(3)
Total trading gains, net	$	7	$	11	$	32	$	26

Financial Assets and Liabilities Not Measured at Fair Value



	September 30, 2018
	Carrying Value		Fair Value		Level 1		Level 2		Level 3

	(in millions)
Financial assets, not measured at fair value
Cash and cash equivalents	$	3,062	$	3,062	$	3,062	$	—	$	—
Cash - segregated for regulatory purposes		7,523		7,523		7,523		—		—
Securities - segregated for regulatory purposes		8,734		8,734		—		8,734		—
Securities borrowed		3,551		3,551		—		3,551		—
Securities purchased under agreements to resell		331		331		—		331		—
Receivables from customer		30,913		30,913		—		30,913		—
Receivables from broker, dealers, and clearing organizations		846		846		—		846		—
Interest receivable		117		117		—		117		—
Other assets		5		6		—		6		—
Total financial assets, not measured at fair value	$	55,082	$	55,083	$	10,585	$	44,498	$	—



Financial liabilities, not measured at fair value
Short-term borrowings	$	28	$	28	$	—	$	28	$	—
Securities loaned		3,834		3,834		—		3,834		—
Securities sold under agreements to repurchase		—		—		—		—		—
Payables to customer		49,823		49,823		—		49,823		—
Payables to brokers, dealers and clearing organizations		179		179		—		179		—
Interest payable		35		35		—		35		—
Total financial liabilities, not measured at fair value	$	53,899	$	53,899	$	—	$	53,899	$	—



	December 31, 2017
	Carrying Value		Fair Value		Level 1		Level 2		Level 3
	(in millions)
Financial assets, not measured at fair value
Cash and cash equivalents	$	1,732	$	1,732	$	1,732	$	—	$	—
Cash - segregated for regulatory purposes		6,547		6,547		6,547		—		—
Securities - segregated for regulatory purposes		9,166		9,166		—		9,166		—
Securities borrowed		2,957		2,957		—		2,957		—
Securities purchased under agreements to resell		2,035		2,035		—		2,035		—
Receivables from customer		29,821		29,821		—		29,821		—
Receivables from broker, dealers, and clearing organizations		823		823		—		823		—
Interest receivable		116		116		—		116		—
Other assets		6		6		—		6		—
Total financial assets, not measured at fair value	$	53,203	$	53,203	$	8,279	$	44,924	$	—



Financial liabilities, not measured at fair value
Short-term borrowings	$	15	$	15	$	—	$	15	$	—
Securities loaned		4,444		4,444		—		4,444		—
Securities sold under agreements to repurchase		1,316		1,316		—		1,316		—
Payables to customer		47,548		47,548		—		47,548		—
Payables to brokers, dealers and clearing organizations		283		283		—		283		—
Interest payable		22		22		—		22		—
Total financial liabilities, not measured at fair value	$	53,628	$	53,628	$	—	$	53,628	$	—

Offsetting Assets



	September 30, 2018
	Gross			Amounts			Net Amounts		Amounts Not Offset
	Amounts			Offset in the			Presented in		in the Condensed
	of Financial			Condensed			the Condensed		Consolidated Statement
	Assets and			Consolidated			Consolidated		of Financial Condition
	Liabilities			Statement of			Statement of		Cash or Financial
	Recognized			Financial Condition		2	Financial Condition		Instruments		Net Amount

	(in millions)
Offsetting of financial assets
Securities segregated for regulatory purposes - purchased under agreements to resell	$	8,734	1	$	—		$	8,734	$	(8,734)	$	—
Securities borrowed		3,551			—			3,551		(3,375)		176
Securities purchased under agreements to resell		331			—			331		(331)		—
Financial instruments owned, at fair value
Options		1,720			—			1,720		(677)		1,043
Warrants		—			—			—		—		—
Currency forward contracts		—			—			—		—		—
Total	$	14,336		$	—		$	14,336	$	(13,117)	$	1,219



	December 31, 2017
		Gross		Amounts			Net Amounts		Amounts Not Offset
		Amounts		Offset in the			Presented in		in the Condensed
		of Financial		Condensed			the Condensed		Consolidated Statement
		Assets and		Consolidated			Consolidated		of Financial Condition
		Liabilities		Statement of			Statement of		Cash or Financial
		Recognized		Financial Condition		2	Financial Condition		Instruments		Net Amount

	(in millions)
Offsetting of financial assets
Securities segregated for regulatory purposes - purchased under agreements to resell	$	9,166	1	$	—		$	9,166	$	(9,166)	$	—
Securities borrowed		2,957			—			2,957		(2,822)		135
Securities purchased under agreements to resell		2,035			—			2,035		(2,035)		—
Financial instruments owned, at fair value
Options		1,052			—			1,052		(451)		601
Warrants		5			—			5		—		5
Currency forward contracts		32			—			32		—		32
Total	$	15,247		$	—		$	15,247	$	(14,474)	$	773

(1)

As of September 30, 2018 and December 31, 2017, the Company had $8.7 billion and $9.2 billion, respectively, of securities purchased under agreements to resell that were segregated to satisfy regulatory requirements. These securities are included in “Cash and securities - segregated for regulatory purposes” in the consolidated statements of financial condition.

(2)

The Company did not have any balances eligible for netting in accordance with ASC Topic 210-20 at September 30, 2018 and December 31, 2017.

Offsetting Liabilities


	(in millions)
Offsetting of financial liabilities
Securities loaned	$	3,834	$	—	$	3,834	$	(3,582)	$	252
Securities sold under agreements to repurchase		—		—		—		—		—
Financial instruments sold, but not yet purchased, at fair value
Options		689		—		689		(677)		12
Warrants		—		—		—		—		—
Currency forward contracts		11		—		11		—		11
Total	$	4,534	$	—	$	4,534	$	(4,259)	$	275


	(in millions)
Offsetting of financial liabilities
Securities loaned	$	4,444	$	—	$	4,444	$	(4,201)	$	243
Securities sold under agreements to repurchase		1,316		—		1,316		(1,316)		—
Financial instruments sold, but not yet purchased, at fair value
Options		464		—		464		(451)		13
Warrants		—		—		—		—		—
Currency forward contracts		1		—		1		—		1
Total	$	6,225	$	—	$	6,225	$	(5,968)	$	257

(1)

(2)

The Company did not have any balances eligible for netting in accordance with ASC Topic 210-20 at September 30, 2018 and December 31, 2017.

Schedule of Securities Financing Transactions



	September 30, 2018
	Remaining Contractual Maturity
	Overnight		Less than		30 – 90		Over 90
	and Open		30 days		days		days		Total

	(in millions)
Securities loaned
Stocks	$	3,789	$	-	$	-	$	-	$	3,789
Corporate bonds		45		-		-		-		45
Foreign government securities		-		-		-		-		-
Total securities loaned	$	3,834	$	-	$	-	$	-	$	3,834


	December 31, 2017
	Remaining Contractual Maturity
	Overnight		Less than		30 – 90		Over 90
	and Open		30 days		days		days		Total

	(in millions)
Securities loaned
Stocks	$	4,389	$	-	$	-	$	-	$	4,389
Corporate bonds		55		-		-		-		55
Total securities loaned		4,444		-		-		-		4,444

Securities sold under agreements to repurchase
U.S. government securities		1,316		-		-		-		1,316
Total	$	5,760	$	-	$	-	$	-	$	5,760