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Segment Reporting And Geographic Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting And Geographic Information [Abstract]  
Segment Reporting And Geographic Information 14.  Segment Reporting and Geographic Information

Segment Reporting

The Company has a single reportable segment, electronic brokerage, which is managed on a consolidated basis since the Company’s chief operating decision maker (“CODM”) assesses performance and allocates resources on a consolidated basis based on income before income taxes and net income as reported on the consolidated statements of comprehensive income. The Company’s CODM is its Chief Executive Officer and President.

The electronic brokerage segment provides execution, clearing and settlement of trades globally for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers and individual investors. The electronic brokerage segment derives revenue from customers in the U.S. and international markets by routing orders and executing and processing trades in stocks, options, futures, foreign exchange instruments (“forex”), bonds, mutual funds, ETFs, precious metals, and forecast contracts on more than 160 electronic exchanges and market centers in 36 countries and 28 currencies around the world, and by offering custody, prime brokerage, and securities and margin lending services to customers. In addition, electronic brokerage customers can use its trading platform to trade certain cryptocurrencies through third-party cryptocurrency service providers that execute, clear and custody the cryptocurrencies.

Since the electronic brokerage segment is managed on a consolidated basis, there are no reconciling items between segment and the consolidated amounts reported in these financial statements, including total assets and segment assets. The accounting policies of the electronic brokerage segment are the same as those described in the summary of significant accounting policies in Note 2.

The table below presents selected financial information, including significant expenses, for the Company’s single operating segment for the periods indicated.

Three Months Ended March 31,

2025

2024

(in millions)

Total net revenues

$

1,427 

$

1,203 

Significant Expenses

Transaction based fees 1

102 

80 

Non-transaction based fees 1

19 

21 

Employee compensation 2

143 

133 

Advertising 3

21 

13 

Other expenses 4

87 

90 

Total non-interest expenses

372 

337 

Income before income taxes

1,055 

866 

Income tax expense

91 

71 

Net income

$

964 

$

795 

Total segment assets

$

157,670 

$

132,238 

Total depreciation and amortization 5

$

15 

$

17 

__________________________

(1)Included in “Execution, clearing and distribution fees” in the condensed consolidated statements of comprehensive income.

(2)Included in “Employee compensation and benefits” in the condensed consolidated statements of comprehensive income.

(3)Included in “General and administrative” in the condensed consolidated statements of comprehensive income.


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(4)Includes “Occupancy, depreciation and amortization”; “Communications”; “Customer bad debt”; employee benefits and other personnel expenses included in “Employee compensation and benefits”; and professional services, legal and regulatory matters, and other administrative expenses included in “General and administrative” in the condensed consolidated statements of comprehensive income.

(5)Included in “Occupancy, depreciation and amortization” in the condensed consolidated statements of comprehensive income.

Interest income and expense is disclosed in the condensed consolidated statements of comprehensive income.

Geographic Information

The Company operates its automated global business in the U.S. and international markets on more than 160 electronic exchanges and market centers. A significant portion of the Company’s net revenues is generated by subsidiaries operating outside the U.S. International operations are conducted in 35 countries in Europe, Asia/Pacific and the Americas (outside the U.S.). The following table presents total net revenues and income before income taxes by geographic area for the periods indicated.

Significant transactions and balances between the operating subsidiaries occur, primarily as a result of certain operating subsidiaries holding exchange or clearing organization memberships, which are utilized to provide execution and clearing services to subsidiaries. Intra-region income and expenses and related balances have been eliminated in this geographic information to reflect the external business conducted in each geographic region. The geographic analysis presented below is based on the location of the subsidiaries in which the transactions are recorded. This geographic information does not reflect the way the Company’s business is managed.

Three Months Ended March 31,

2025

2024

(in millions)

Net revenues

United States

$

990

$

828

International

437

375

Total net revenues

$

1,427

$

1,203

Income before income taxes

United States

$

806

$

647

International

249

219

Total income before income taxes

$

1,055

$

866