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Financial Assets And Financial Liabilities | 9 Months Ended
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Sep. 30, 2020
Financial Assets And Financial Liabilities [Abstract] |
Financial Assets And Financial Liabilities | 6. Financial Assets and Financial Liabilities Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis The tables below present, by level within the fair value hierarchy (see Note 2), financial assets and liabilities, measured at fair value on a recurring basis for the periods indicated. As required by ASC Topic 820, financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the respective fair value measurement.
|  | Financial Assets at Fair Value as of September 30, 2020
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total
|  | (in millions)
Securities segregated for regulatory purposes |  | $ | 4,974 |  | $ | — |  | $ | — |  | $ | 4,974
Financial instruments owned, at fair value |  |  |  |  |  |  |  |  |  |  |  |
Stocks |  |  | 375 |  |  | — |  |  | 1 |  |  | 376
Options |  |  | 29 |  |  | — |  |  | — |  |  | 29
Warrants |  |  | — |  |  | — |  |  | — |  |  | —
U.S. and foreign government securities |  |  | 28 |  |  | — |  |  | — |  |  | 28
Corporate bonds |  |  | — |  |  | — |  |  | 3 |  |  | 3
Currency forward contracts |  |  | — |  |  | 16 |  |  | — |  |  | 16
Total financial instruments owned, at fair value |  |  | 432 |  |  | 16 |  |  | 4 |  |  | 452
Other assets - other investments at fair value |  |  | 48 |  |  | — |  |  | — |  |  | 48
Total financial assets at fair value |  | $ | 5,454 |  | $ | 16 |  | $ | 4 |  | $ | 5,474
|  | Financial Liabilities at Fair Value as of September 30, 2020
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total
|  | (in millions)
Financial instruments sold, but not yet purchased, at fair value |  |  |  |  |  |  |  |  |  |  |  |
Stocks |  | $ | 158 |  | $ | — |  | $ | — |  | $ | 158
Options |  |  | 27 |  |  | — |  |  | — |  |  | 27
Currency forward contracts |  |  | — |  |  | 2 |  |  | — |  |  | 2
Total financial instruments sold, but not yet purchased, at fair value |  |  | 185 |  |  | 2 |  |  | — |  |  | 187
Total financial liabilities at fair value |  | $ | 185 |  | $ | 2 |  | $ | — |  | $ | 187
|  | Financial Assets at Fair Value as of December 31, 2019
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total
|  | (in millions)
Securities segregated for regulatory purposes |  | $ | 3,797 |  | $ | — |  | $ | — |  | $ | 3,797
Financial instruments owned, at fair value |  |  |  |  |  |  |  |  |  |  |  |
Stocks |  |  | 540 |  |  | — |  |  | — |  |  | 540
Options |  |  | 1,333 |  |  | — |  |  | — |  |  | 1,333
Warrants |  |  | — |  |  | — |  |  | — |  |  | —
U.S. and foreign government securities |  |  | 34 |  |  | — |  |  | — |  |  | 34
Corporate bonds |  |  | — |  |  | — |  |  | 3 |  |  | 3
Currency forward contracts |  |  | — |  |  | 6 |  |  | — |  |  | 6
Total financial instruments owned, at fair value |  |  | 1,907 |  |  | 6 |  |  | 3 |  |  | 1,916
Other assets - other investments at fair value |  |  | 36 |  |  | — |  |  | — |  |  | 36
Total financial assets at fair value |  | $ | 5,740 |  | $ | 6 |  | $ | 3 |  | $ | 5,749
‎
|  | Financial Liabilities at Fair Value as of December 31, 2019
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total
|  | (in millions)
Financial instruments sold, but not yet purchased, at fair value |  |  |  |  |  |  |  |  |  |  |  |
Stocks |  | $ | 183 |  | $ | — |  | $ | — |  | $ | 183
Options |  |  | 273 |  |  | — |  |  | — |  |  | 273
Currency forward contracts |  |  | — |  |  | 1 |  |  | — |  |  | 1
Total financial instruments sold, but not yet purchased, at fair value |  |  | 456 |  |  | 1 |  |  | — |  |  | 457
Total financial liabilities at fair value |  | $ | 456 |  | $ | 1 |  | $ | — |  | $ | 457
Level 3 Financial Assets and Financial Liabilities The Company’s Level 3 financial assets are comprised of delisted and illiquid securities reported within financial instruments owned, at fair value in the condensed consolidated statements of financial condition. As of September 30, 2020, Level 3 financial assets included $3 million in corporate bonds and $1 million in stocks which were not traded in active markets and were valued by the Company based on internal estimates. Financial Assets and Liabilities Not Measured at Fair Value The tables below represent the carrying value, fair value, and fair value hierarchy category of certain financial assets and liabilities that are not recorded at fair value in the Company's condensed consolidated statements of financial condition for the periods indicated. The tables below exclude certain financial instruments such as equity investments and all non-financial assets and liabilities.
|  | September 30, 2020
|  | Carrying ‎Value |  | Fair ‎Value |  | Level 1 |  | Level 2 |  | Level 3
|  | (in millions)
Financial assets, not measured at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 3,292 |  | $ | 3,292 |  | $ | 3,292 |  | $ | — |  | $ | —
Cash - segregated for regulatory purposes |  |  | 12,789 |  |  | 12,789 |  |  | 12,789 |  |  | — |  |  | —
Securities - segregated for regulatory purposes |  |  | 24,342 |  |  | 24,342 |  |  | — |  |  | 24,342 |  |  | —
Securities borrowed |  |  | 3,995 |  |  | 3,995 |  |  | — |  |  | 3,995 |  |  | —
Securities purchased under agreements to resell |  |  | 1,401 |  |  | 1,401 |  |  | — |  |  | 1,401 |  |  | —
Receivables from customer |  |  | 30,343 |  |  | 30,343 |  |  | — |  |  | 30,343 |  |  | —
Receivables from broker, dealers, and clearing organizations |  |  | 2,575 |  |  | 2,575 |  |  | — |  |  | 2,575 |  |  | —
Interest receivable |  |  | 69 |  |  | 69 |  |  | — |  |  | 69 |  |  | —
Other assets |  |  | 11 |  |  | 11 |  |  | — |  |  | 2 |  |  | 9
Total financial assets, not measured at fair value |  | $ | 78,817 |  | $ | 78,817 |  | $ | 16,081 |  | $ | 62,727 |  | $ | 9
Financial liabilities, not measured at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term borrowings |  | $ | 628 |  | $ | 628 |  | $ | — |  | $ | 628 |  | $ | —
Securities loaned |  |  | 5,738 |  |  | 5,738 |  |  | — |  |  | 5,738 |  |  | —
Payables to customer |  |  | 68,830 |  |  | 68,830 |  |  | — |  |  | 68,830 |  |  | —
Payables to brokers, dealers and clearing organizations |  |  | 313 |  |  | 313 |  |  | — |  |  | 313 |  |  | —
Interest payable |  |  | 3 |  |  | 3 |  |  | — |  |  | 3 |  |  | —
Total financial liabilities, not measured at fair value |  | $ | 75,512 |  | $ | 75,512 |  | $ | — |  | $ | 75,512 |  | $ | —
‎
|  | December 31, 2019
|  | Carrying ‎Value |  | Fair ‎Value |  | Level 1 |  | Level 2 |  | Level 3
|  | (in millions)
Financial assets, not measured at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 2,882 |  | $ | 2,882 |  | $ | 2,882 |  | $ | — |  | $ | —
Cash - segregated for regulatory purposes |  |  | 9,400 |  |  | 9,400 |  |  | 9,400 |  |  | — |  |  | —
Securities - segregated for regulatory purposes |  |  | 14,027 |  |  | 14,027 |  |  | — |  |  | 14,027 |  |  | —
Securities borrowed |  |  | 3,916 |  |  | 3,916 |  |  | — |  |  | 3,916 |  |  | —
Securities purchased under agreements to resell |  |  | 3,111 |  |  | 3,111 |  |  | — |  |  | 3,111 |  |  | —
Receivables from customer |  |  | 31,304 |  |  | 31,304 |  |  | — |  |  | 31,304 |  |  | —
Receivables from broker, dealers, and clearing organizations |  |  | 685 |  |  | 685 |  |  | — |  |  | 685 |  |  | —
Interest receivable |  |  | 158 |  |  | 158 |  |  | — |  |  | 158 |  |  | —
Other assets |  |  | 9 |  |  | 9 |  |  | — |  |  | 3 |  |  | 6
Total financial assets, not measured at fair value |  | $ | 65,492 |  | $ | 65,492 |  | $ | 12,282 |  | $ | 53,204 |  | $ | 6
Financial liabilities, not measured at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term borrowings |  | $ | 16 |  | $ | 16 |  | $ | — |  | $ | 16 |  | $ | —
Securities loaned |  |  | 4,410 |  |  | 4,410 |  |  | — |  |  | 4,410 |  |  | —
Securities sold under agreements to repurchase |  |  | 1,909 |  |  | 1,909 |  |  | — |  |  | 1,909 |  |  | —
Payables to customer |  |  | 56,248 |  |  | 56,248 |  |  | — |  |  | 56,248 |  |  | —
Payables to brokers, dealers and clearing organizations |  |  | 220 |  |  | 220 |  |  | — |  |  | 220 |  |  | —
Interest payable |  |  | 29 |  |  | 29 |  |  | — |  |  | 29 |  |  | —
Total financial liabilities, not measured at fair value |  | $ | 62,832 |  | $ | 62,832 |  | $ | — |  | $ | 62,832 |  | $ | —
Netting of Financial Assets and Financial Liabilities The Company’s policy is to net securities borrowed and securities loaned, and securities purchased under agreements to resell and securities sold under agreements to repurchase that meet the offsetting requirements prescribed in ASC Topic 210-20. In the tables below, the amounts of financial instruments that are not offset in the condensed consolidated statements of financial condition, but could be netted against cash or financial instruments with specific counterparties under master netting agreements, according to the terms of the agreements, including clearing houses (exchange traded options, warrants and discount certificates) or over the counter currency forward contract counterparties, are presented to provide financial statement readers with the Company’s net payable or receivable with counterparties for these financial instruments. ‎ The tables below present the netting of financial assets and of financial liabilities for the periods indicated.
|  | September 30, 2020
|  | 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 |  | $ | 24,342 | 1 |  | $ | — |  |  | $ | 24,342 |  | $ | (24,342) |  | $ | —
Securities borrowed |  |  | 3,995 |  |  |  | — |  |  |  | 3,995 |  |  | (3,822) |  |  | 173
Securities purchased under agreements to resell |  |  | 1,401 |  |  |  | — |  |  |  | 1,401 |  |  | (1,401) |  |  | —
Financial instruments owned, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options |  |  | 29 |  |  |  | — |  |  |  | 29 |  |  | (26) |  |  | 3
Currency forward contracts |  |  | 16 |  |  |  | — |  |  |  | 16 |  |  | — |  |  | 16
Total |  | $ | 29,783 |  |  | $ | — |  |  | $ | 29,783 |  | $ | (29,591) |  | $ | 192
|  | (in millions)
Offsetting of financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities loaned |  | $ | 5,738 |  |  | $ | — |  |  | $ | 5,738 |  | $ | (5,404) |  | $ | 334
Financial instruments sold, but not yet purchased, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options |  |  | 27 |  |  |  | — |  |  |  | 27 |  |  | (26) |  |  | 1
Currency forward contracts |  |  | 2 |  |  |  | — |  |  |  | 2 |  |  | — |  |  | 2
Total |  | $ | 5,767 |  |  | $ | — |  |  | $ | 5,767 |  | $ | (5,430) |  | $ | 337
‎
|  | December 31, 2019
|  |  | 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 |  | $ | 14,027 | 1 |  | $ | — |  |  | $ | 14,027 |  | $ | (14,027) |  | $ | —
Securities borrowed |  |  | 3,916 |  |  |  | — |  |  |  | 3,916 |  |  | (3,765) |  |  | 151
Securities purchased under agreements to resell |  |  | 3,111 |  |  |  | — |  |  |  | 3,111 |  |  | (3,111) |  |  | —
Financial instruments owned, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options |  |  | 1,333 |  |  |  | — |  |  |  | 1,333 |  |  | (267) |  |  | 1,066
Currency forward contracts |  |  | 6 |  |  |  | — |  |  |  | 6 |  |  | — |  |  | 6
Total |  | $ | 22,393 |  |  | $ | — |  |  | $ | 22,393 |  | $ | (21,170) |  | $ | 1,223
|  | (in millions)
Offsetting of financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Securities loaned |  | $ | 4,410 |  |  | $ | — |  |  | $ | 4,410 |  | $ | (4,186) |  | $ | 224
Securities sold under agreements to repurchase |  |  | 1,909 |  |  |  | — |  |  |  | 1,909 |  |  | (1,909) |  |  | —
Financial instruments sold, but not yet purchased, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Options |  |  | 273 |  |  |  | — |  |  |  | 273 |  |  | (267) |  |  | 6
Currency forward contracts |  |  | 1 |  |  |  | — |  |  |  | 1 |  |  | — |  |  | 1
Total |  | $ | 6,593 |  |  | $ | — |  |  | $ | 6,593 |  | $ | (6,362) |  | $ | 231
________________________ (1)As of September 30, 2020 and December 31, 2019, the Company had $24.3 billion and $14.0 billion, respectively, of securities purchased under agreements to resell that were segregated to satisfy regulatory requirements. These securities are included in “Securities - segregated for regulatory purposes” in the condensed 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, 2020 and December 31, 2019. ‎ Secured Financing Transactions – Maturities and Collateral Pledged The tables below present gross obligations for securities loaned transactions by remaining contractual maturity and class of collateral pledged for the periods indicated.
|  | September 30, 2020
|  | Remaining Contractual Maturity
|  | Overnight |  | Less than |  | 30 – 90 |  | Over 90 |  |  |
|  | and Open |  | 30 days |  | days |  | days |  | Total
|  | (in millions)
Securities loaned |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stocks |  | $ | 5,696 |  | $ | — |  | $ | — |  | $ | — |  | $ | 5,696
Corporate bonds |  |  | 41 |  |  | — |  |  | — |  |  | — |  |  | 41
Foreign government securities |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1
Total |  | $ | 5,738 |  | $ | — |  | $ | — |  | $ | — |  | $ | 5,738
|  | December 31, 2019
|  | Remaining Contractual Maturity
|  | Overnight |  | Less than |  | 30 – 90 |  | Over 90 |  |  |
|  | and Open |  | 30 days |  | days |  | days |  | Total
|  | (in millions)
Securities loaned |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stocks |  | $ | 4,356 |  | $ | — |  | $ | — |  | $ | — |  | $ | 4,356
Corporate bonds |  |  | 54 |  |  | — |  |  | — |  |  | — |  |  | 54
Total securities loaned |  |  | 4,410 |  |  | — |  |  | — |  |  | — |  |  | 4,410
Securities sold under agreements to repurchase |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government securities |  |  | 1,909 |  |  | — |  |  | — |  |  | — |  |  | 1,909
Total |  | $ | 6,319 |  | $ | — |  | $ | — |  | $ | — |  | $ | 6,319

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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