Financial Assets And Financial Liabilities

3 Months Ended

Mar. 31, 2022

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 March 31, 2022

	Level 1		Level 2		Level 3		Total

	(in millions)

Securities segregated for regulatory purposes	$	7,416	$	—	$	—	$	7,416
Financial instruments owned, at fair value
Stocks		477		—		—		477
Options		36		—		—		36
U.S. and foreign government securities		53		—		—		53
Precious metals		—		10		—		10
Currency forward contracts		—		1		—		1
Total financial instruments owned, at fair value		566		11		—		577

Other assets		215		—		—		215
Total financial assets at fair value	$	8,197	$	11	$	—	$	8,208



	Financial Liabilities at Fair Value as of March 31, 2022
	Level 1		Level 2		Level 3		Total

	(in millions)

Financial instruments sold, but not yet purchased, at fair value
Stocks	$	140	$	—	$	—	$	140
Options		35		—		—		35
Precious metals		—		8		—		8
Currency forward contracts		—		7		—		7
Total financial instruments sold, but not yet purchased, at fair value		175		15		—		190

Accounts payable, accrued expenses and other liabilities		166		—		—		166
Total financial liabilities at fair value	$	341	$	15	$	—	$	356


	Financial Assets at Fair Value as of December 31, 2021
	Level 1		Level 2		Level 3		Total

	(in millions)

Securities segregated for regulatory purposes	$	4,729	$	—	$	—	$	4,729
Financial instruments owned, at fair value
Stocks		548		—		—		548
Options		22		—		—		22
U.S. and foreign government securities		54		—		—		54
Precious metals		—		10		—		10
Currency forward contracts		—		39		—		39
Total financial instruments owned, at fair value		624		49		—		673

Other assets		215		—		—		215
Total financial assets at fair value	$	5,568	$	49	$	—	$	5,617

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	Financial Liabilities at Fair Value as of December 31, 2021
	Level 1		Level 2		Level 3		Total

	(in millions)
Financial instruments sold, but not yet purchased, at fair value
Stocks	$	144	$	—	$	—	$	144
Options		22		—		—		22
Precious metals		—		6		—		6
Currency forward contracts		—		10		—		10
Total financial instruments sold, but not yet purchased, at fair value		166		16		—		182

Accounts payable, accrued expenses and other liabilities		166		—		—		166
Total financial liabilities at fair value	$	332	$	16	$	—	$	348

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 method investments and all non-financial assets and liabilities.



	March 31, 2022
	Carrying ‎Value		Fair ‎Value		Level 1		Level 2		Level 3

	(in millions)

Financial assets, not measured at fair value
Cash and cash equivalents	$	2,667	$	2,667	$	2,667	$	—	$	—
Cash - segregated for regulatory purposes		24,581		24,581		24,581		—		—
Securities - segregated for regulatory purposes		16,934		16,934		—		16,934		—
Securities borrowed		4,445		4,445		—		4,445		—
Securities purchased under agreements to resell		6,268		6,268		—		6,268		—
Receivables from customers		48,306		48,306		—		48,306		—
Receivables from brokers, dealers and clearing organizations		2,188		2,188		—		2,188		—
Interest receivable		118		118		—		118		—
Other assets		18		19		—		2		17
Total financial assets, not measured at fair value	$	105,525	$	105,526	$	27,248	$	78,261	$	17



Financial liabilities, not measured at fair value
Short-term borrowings	$	11	$	11	$	—	$	11	$	—
Securities loaned		11,379		11,379		—		11,379		—
Securities sold under agreements to repurchase		300		300		—		300		—
Payables to customers		91,097		91,097		—		91,097		—
Payables to brokers, dealers and clearing organizations		230		230		—		230		—
Interest payable		8		8		—		8		—
Total financial liabilities, not measured at fair value	$	103,025	$	103,025	$	—	$	103,025	$	—

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	December 31, 2021
	Carrying ‎Value		Fair ‎Value		Level 1		Level 2		Level 3

	(in millions)

Financial assets, not measured at fair value
Cash and cash equivalents	$	2,395	$	2,395	$	2,395	$	—	$	—
Cash - segregated for regulatory purposes		22,888		22,888		22,888		—		—
Securities - segregated for regulatory purposes		10,392		10,392		—		10,392		—
Securities borrowed		3,912		3,912		—		3,912		—
Securities purchased under agreements to resell		4,380		4,380		—		4,380		—
Receivables from customers		54,935		54,935		—		54,935		—
Receivables from brokers, dealers and clearing organizations		3,771		3,771		—		3,771		—
Interest receivable		127		127		—		127		—
Other assets		20		20		—		2		18
Total financial assets, not measured at fair value	$	102,820	$	102,820	$	25,283	$	77,519	$	18



Financial liabilities, not measured at fair value
Short-term borrowings	$	27	$	27	$	—	$	27	$	—
Securities loaned		11,769		11,769		—		11,769		—
Payables to customers		85,634		85,634		—		85,634		—
Payables to brokers, dealers and clearing organizations		557		557		—		557		—
Interest payable		8		8		—		8		—
Total financial liabilities, not measured at fair value	$	97,995	$	97,995	$	—	$	97,995	$	—

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.

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The tables below present the netting of financial assets and financial liabilities for the periods indicated.



	March 31, 2022
	Gross			Amounts			Net Amounts		Amounts Not Offset
	Amounts			Offset in the			Presented in		in the Condensed
	of Financial			Condensed			the Condensed		Consolidated Statements
	Assets and			Consolidated			Consolidated		of Financial Condition
	Liabilities			Statements of			Statements 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	$	16,934	¹	$	—		$	16,934	$	(16,934)	$	—
Securities borrowed		4,445			—			4,445		(4,238)		207
Securities purchased under agreements to resell		6,268			—			6,268		(6,268)		—
Financial instruments owned, at fair value
Options		36			—			36		(33)		3
Currency forward contracts		1			—			1		—		1
Total	$	27,684		$	—		$	27,684	$	(27,473)	$	211


	(in millions)
Offsetting of financial liabilities
Securities loaned	$	11,379	$	—	$	11,379	$	(10,548)	$	831
Securities sold under agreements to repurchase		300		—		300		(300)		—
Financial instruments sold, but not yet purchased, at fair value
Options		35		—		35		(33)		2
Currency forward contracts		7		—		7		—		7
Total	$	11,721	$	—	$	11,721	$	(10,881)	$	840

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	December 31, 2021
		Gross		Amounts			Net Amounts		Amounts Not Offset
		Amounts		Offset in the			Presented in		in the Condensed
		of Financial		Condensed			the Condensed		Consolidated Statements
		Assets and		Consolidated			Consolidated		of Financial Condition
		Liabilities		Statements of			Statements 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	$	10,392	¹	$	—		$	10,392	$	(10,392)	$	—
Securities borrowed		3,912			—			3,912		(3,642)		270
Securities purchased under agreements to resell		4,380			—			4,380		(4,380)		—
Financial instruments owned, at fair value
Options		22			—			22		(19)		3
Currency forward contracts		39			—			39		—		39
Total	$	18,745		$	—		$	18,745	$	(18,433)	$	312


	(in millions)
Offsetting of financial liabilities
Securities loaned	$	11,769	$	—	$	11,769	$	(10,992)	$	777
Financial instruments sold, but not yet purchased, at fair value
Options		22		—		22		(19)		3
Currency forward contracts		10		—		10		—		10
Total	$	11,801	$	—	$	11,801	$	(11,011)	$	790

________________________

(1)As of March 31, 2022 and December 31, 2021, the Company had $16.9 billion and $10.4 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 March 31, 2022 and December 31, 2021.

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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.



	March 31, 2022
	Remaining Contractual Maturity
	Overnight		Less than		30 – 90		Over 90
	and Open		30 days		days		days		Total

	(in millions)

Securities loaned
Stocks	$	11,310	$	—	$	—	$	—	$	11,310
Corporate bonds		66		—		—		—		66
Foreign government securities		3		—		—		—		3
Total securities loaned	$	11,379	$	—	$	—	$	—	$	11,379

Securities sold under agreements to repurchase
U.S. government securities		300		—		—		—		300
Total	$	11,679	$	—	$	—	$	—	$	11,679


	December 31, 2021
	Remaining Contractual Maturity
	Overnight		Less than		30 – 90		Over 90
	and Open		30 days		days		days		Total

	(in millions)

Securities loaned
Stocks	$	11,715	$	—	$	—	$	—	$	11,715
Corporate bonds		51		—		—		—		51
Foreign government securities		3		—		—		—		3
Total securities loaned	$	11,769	$	—	$	—	$	—	$	11,769

- 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.

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