Financial Assets And Financial Liabilities

12 Months Ended

Dec. 31, 2023

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 December 31, 2023

	Level 1		Level 2		Level 3		Total

	(in millions)

Securities segregated for regulatory purposes
U.S. and foreign government securities	$	5,684	$	—	$	—	$	5,684
Municipal securities		—		70		—		70
Total securities segregated for regulatory purposes		5,684		70		—		5,754

Financial instruments owned, at fair value
Stocks		1,023		—		—		1,023
Options		354		—		—		354
U.S. and foreign government securities		39		—		—		39
Precious metals		—		12		—		12
Currency forward contracts		—		60		—		60
Total financial instruments owned, at fair value		1,416		72		—		1,488

Other assets
Customer-held fractional shares		144		—		—		144
Crypto-asset safeguarding asset		—		172		—		172
Other investments in equity securities		44		—		—		44
Total other assets		188		172		—		360
Total financial assets at fair value	$	7,288	$	314	$	—	$	7,602



	Financial Liabilities at Fair Value as of December 31, 2023
	Level 1		Level 2		Level 3		Total

	(in millions)

Financial instruments sold, but not yet purchased, at fair value
Stocks	$	77	$	—	$	—	$	77
Options		104		—		—		104
Precious metals		—		7		—		7
Currency forward contracts		—		5		—		5
Total financial instruments sold, but not yet purchased, at fair value		181		12		—		193

Accounts payable, accrued expenses and other liabilities
Fractional shares repurchase obligation		144		—		—		144
Crypto-asset safeguarding liability		—		172		—		172
Total accounts payable, accrued expenses and other liabilities		144		172		—		316
Total financial liabilities at fair value	$	325	$	184	$	—	$	509


	Financial Assets at Fair Value as of December 31, 2022
	Level 1		Level 2		Level 3		Total

	(in millions)

Securities segregated for regulatory purposes
U.S. and foreign government securities	$	4,641	$	—	$	—	$	4,641
Municipal securities		—		82		—		82
Total securities segregated for regulatory purposes		4,641		82		—		4,723

Financial instruments owned, at fair value
Stocks		380		—		—		380
Options		31		—		—		31
U.S. and foreign government securities		35		—		—		35
Precious metals		—		9		—		9
Currency forward contracts		—		30		—		30
Total financial instruments owned, at fair value		446		39		—		485

Other assets
Customer-held fractional shares		91		—		—		91
Crypto-asset safeguarding asset		—		80		—		80
Other investments in equity securities		34		—		—		34
Total other assets		125		80		—		205
Total financial assets at fair value	$	5,212	$	201	$	—	$	5,413



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

	(in millions)
Financial instruments sold, but not yet purchased, at fair value
Stocks	$	121	$	—	$	—	$	121
Options		16		—		—		16
Precious metals		—		7		—		7
Currency forward contracts		—		2		—		2
Total financial instruments sold, but not yet purchased, at fair value		137		9		—		146

Accounts payable, accrued expenses and other liabilities
Fractional shares repurchase obligation		91		—		—		91
Crypto-asset safeguarding liability		—		80		—		80
Total accounts payable, accrued expenses and other liabilities		91		80		—		171
Total financial liabilities at fair value	$	228	$	89	$	—	$	317

Level 3 Financial Assets and Financial Liabilities

There were no transfers in or out of level 3 for the year ended December 31, 2023.

Financial Assets and Liabilities Not Measured at Fair Value

Financial assets and liabilities not measured at fair value are recorded at carrying value, which approximates fair value due to their short-term nature. 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 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.



	December 31, 2023
	Carrying ‎Value		Fair ‎Value		Level 1		Level 2		Level 3

	(in millions)
Financial assets, not measured at fair value
Cash and cash equivalents	$	3,753	$	3,753	$	3,753	$	—	$	—
Cash - segregated for regulatory purposes		28,840		28,840		28,840		—		—
Securities - segregated for regulatory purposes		29,632		29,632		—		29,632		—
Securities borrowed		5,835		5,835		—		5,835		—
Securities purchased under agreements to resell		5,504		5,504		—		5,504		—
Receivables from customers		44,472		44,472		—		44,472		—
Receivables from brokers, dealers and clearing organizations		1,643		1,643		—		1,643		—
Interest receivable		375		375		—		375		—
Other assets		22		23		—		2		21
Total financial assets, not measured at fair value	$	120,076	$	120,077	$	32,593	$	87,463	$	21



Financial liabilities, not measured at fair value
Short-term borrowings	$	17	$	17	$	—	$	17	$	—
Securities loaned		11,347		11,347		—		11,347		—
Payables to customers		101,012		101,012		—		101,012		—
Payables to brokers, dealers and clearing organizations		590		590		—		590		—
Interest payable		311		311		—		311		—
Total financial liabilities, not measured at fair value	$	113,277	$	113,277	$	—	$	113,277	$	—

‎



	December 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	$	3,436	$	3,436	$	3,436	$	—	$	—
Cash - segregated for regulatory purposes		25,167		25,167		25,167		—		—
Securities - segregated for regulatory purposes		27,058		27,058		—		27,058		—
Securities borrowed		4,749		4,749		—		4,749		—
Securities purchased under agreements to resell		6,029		6,029		—		6,029		—
Receivables from customers		38,760		38,760		—		38,760		—
Receivables from brokers, dealers and clearing organizations		3,469		3,469		—		3,469		—
Interest receivable		341		341		—		341		—
Other assets		17		18		—		2		16
Total financial assets, not measured at fair value	$	109,026	$	109,027	$	28,603	$	80,408	$	16



Financial liabilities, not measured at fair value
Short-term borrowings	$	18	$	18	$	—	$	18	$	—
Securities loaned		8,940		8,940		—		8,940		—
Payables to customers		93,195		93,195		—		93,195		—
Payables to brokers, dealers and clearing organizations		291		291		—		291		—
Interest payable		193		193		—		193		—
Total financial liabilities, not measured at fair value	$	102,637	$	102,637	$	—	$	102,637	$	—

‎

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 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 financial liabilities for the periods indicated.



	December 31, 2023
	Gross			Amounts			Net Amounts		Amounts Not
	Amounts			Offset in the			Presented in the		Offset in the
	of Financial			Consolidated			Consolidated		Consolidated Statement
	Assets and			Statement of			Statement of		of Financial Condition
	Liabilities			Financial			Financial		Cash or Financial		Net
	Recognized			Condition		²	Condition		Instruments		Amount

	(in millions)
Offsetting of financial assets
Securities segregated for regulatory purposes - purchased under agreements to resell	$	29,632	¹	$	—		$	29,632	$	(29,632)	$	—
Securities borrowed		5,835			—			5,835		(5,618)		217
Securities purchased under agreements to resell		5,504			—			5,504		(5,504)		—
Financial instruments owned, at fair value
Options		354			—			354		(104)		250
Currency forward contracts		60			—			60		—		60
Total	$	41,385		$	—		$	41,385	$	(40,858)	$	527


	(in millions)
Offsetting of financial liabilities
Securities loaned	$	11,347	$	—	$	11,347	$	(10,443)	$	904
Financial instruments sold, but not yet purchased, at fair value
Options		104		—		104		(104)		—
Currency forward contracts		5		—		5		—		5
Total	$	11,456	$	—	$	11,456	$	(10,547)	$	909

‎



	December 31, 2022
		Gross		Amounts			Net Amounts		Amounts Not
		Amounts		Offset in the			Presented in the		Offset in the
		of Financial		Consolidated			Consolidated		Consolidated Statement
		Assets and		Statement of			Statement of		of Financial Condition
		Liabilities		Financial			Financial		Cash or Financial		Net
		Recognized		Condition		²	Condition		Instruments		Amount

	(in millions)
Offsetting of financial assets
Securities segregated for regulatory purposes - purchased under agreements to resell	$	27,058	¹	$	—		$	27,058	$	(27,058)	$	—
Securities borrowed		4,749			—			4,749		(4,597)		152
Securities purchased under agreements to resell		6,029			—			6,029		(6,029)		—
Financial instruments owned, at fair value
Options		31			—			31		(16)		15
Currency forward contracts		30			—			30		—		30
Total	$	37,897		$	—		$	37,897	$	(37,700)	$	197


	(in millions)
Offsetting of financial liabilities
Securities loaned	$	8,940	$	—	$	8,940	$	(8,260)	$	680
Financial instruments sold, but not yet purchased, at fair value
Options		16		—		16		(16)		—
Currency forward contracts		2		—		2		—		2
Total	$	8,958	$	—	$	8,958	$	(8,276)	$	682

___________________________

(1)As of December 31, 2023 and 2022, the Company had $29.6 billion and $27.1 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 consolidated statements of financial condition.
‎

(2)The Company did not have any balances eligible for netting in accordance with ASC Topic 210-20 at December 31, 2023 and 2022.

‎

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.



	December 31, 2023
	Remaining Contractual Maturity
	Overnight		Less than		30 – 90		Over 90
	and Open		30 days		days		days		Total

	(in millions)

Securities loaned
Stocks	$	11,306	$	—	$	—	$	—	$	11,306
Corporate bonds		41		—		—		—		41
Foreign government securities		—		—		—		—		—
Total securities loaned	$	11,347	$	—	$	—	$	—	$	11,347



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

	(in millions)

Securities loaned
Stocks	$	8,837	$	—	$	—	$	—	$	8,837
Corporate bonds		101		—		—		—		101
Foreign government securities		2		—		—		—		2
Total securities loaned	$	8,940	$	—	$	—	$	—	$	8,940

- 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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