XML 29 R19.htm IDEA: XBRL DOCUMENT
v3.22.2

Fair Value of Financial Instruments | 6 Months Ended
--- | ---
Jun. 30, 2022
Fair Value Disclosures [Abstract] |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial Instruments Measured at Fair Value The Company’s financial instruments measured at fair value on the condensed consolidated statements of financial condition as of June 30, 2022 and December 31, 2021 have been categorized based upon the fair value hierarchy as follows:
|  | Quoted Prices in active Markets for Identical Assets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
|  | (in thousands)
As of June 30, 2022 |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |
Cash equivalents – Money market funds |  | $ | 725,142 |  |  | $ | — |  |  | $ | — |  |  | $ | 725,142 |
Receivable from affiliates – Foreign currency forward contracts |  | — |  |  | 5,561 |  |  | — |  |  | 5,561 |
Total assets measured at fair value |  | $ | 725,142 |  |  | $ | 5,561 |  |  | $ | — |  |  | $ | 730,703 |
As of December 31, 2021 |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |
Cash equivalents – Money market funds |  | $ | 654,553 |  |  | $ | — |  |  | $ | — |  |  | $ | 654,553 |
Receivable from affiliates – Foreign currency forward contracts |  | — |  |  | 3,019 |  |  | — |  |  | 3,019 |
Total assets measured at fair value |  | $ | 654,553 |  |  | $ | 3,019 |  |  | $ | — |  |  | $ | 657,572 |
The Company’s money market funds are classified within level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. There were no financial instruments measured at fair value in a liability position as of June 30, 2022 and December 31, 2021. The valuation for the Company’s foreign currency forward contracts is primarily based on the difference between the exchange rate associated with the forward contract and the exchange rate at the current period end. Foreign currency forward contracts are categorized as Level 2 in the fair value hierarchy. The Company enters into foreign currency forward contracts to mitigate its U.S. dollar and British pound sterling versus euro exposure, generally with a duration of less than twelve months. As of June 30, 2022 and December 31, 2021, the counterparty on each of the foreign currency forward contracts was an affiliate of Refinitiv and therefore the corresponding receivables on such contracts were included in receivable from affiliates on the accompanying condensed consolidated statements of financial condition. The following table summarizes the aggregate U.S. dollar equivalent notional amount of the Company’s foreign currency forward contracts not designated as hedges for accounting purposes:
|  | June 30, |  | December 31,
|  | 2022 |  | 2021
|  | (in thousands)
Foreign currency forward contracts – Gross notional amount |  | $ | 161,918 |  |  | $ | 146,202 |
The Company’s foreign currency forward contracts are not designated as hedges for accounting purposes and changes in the fair value of these contracts during the period are recognized in the condensed consolidated statements of income within general and administrative expenses. The total realized and unrealized gains (losses) on foreign currency forward contracts recorded within general and administrative expenses in the condensed consolidated statements of income are as follows:
|  | Three Months Ended |  | Six Months Ended
|  | June 30, |  | June 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
| (in thousands)
Foreign currency forward contracts not designated in accounting hedge relationship |  | $ | 5,488 |  |  | $ | (737) |  |  | $ | 6,170 |  |  | $ | 4,961 |
Financial Instruments Not Measured at Fair Value The Company’s financial instruments not measured at fair value on the condensed consolidated statements of financial condition as of June 30, 2022 and December 31, 2021 have been categorized based upon the fair value hierarchy as follows:
|  | Carrying Value |  | Quoted Prices in active Markets for Identical Assets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total Fair Value
As of June 30, 2022 |  | (in thousands)
Assets |  |  |  |  |  |  |  |  |  |
Cash and restricted cash |  | $ | 235,577 |  |  | $ | 235,577 |  |  | $ | — |  |  | $ | — |  |  | $ | 235,577 |
Receivable from brokers and dealers and clearing organizations |  | 1,646 |  |  | — |  |  | 1,646 |  |  | — |  |  | 1,646 |
Deposits with clearing organizations |  | 25,990 |  |  | 25,990 |  |  | — |  |  | — |  |  | 25,990 |
Accounts receivable |  | 155,426 |  |  | — |  |  | 155,426 |  |  | — |  |  | 155,426 |
Other assets – Memberships in clearing organizations |  | 2,410 |  |  | — |  |  | — |  |  | 2,410 |  |  | 2,410 |
Total |  | $ | 421,049 |  |  | $ | 261,567 |  |  | $ | 157,072 |  |  | $ | 2,410 |  |  | $ | 421,049 |
Liabilities |  |  |  |  |  |  |  |  |  |
Payable to brokers and dealers and clearing organizations |  | $ | 1,644 |  |  | $ | — |  |  | $ | 1,644 |  |  | $ | — |  |  | $ | 1,644 |
Total |  | $ | 1,644 |  |  | $ | — |  |  | $ | 1,644 |  |  | $ | — |  |  | $ | 1,644 |
As of December 31, 2021 |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |
Cash and restricted cash |  | $ | 318,495 |  |  | $ | 318,495 |  |  | $ | — |  |  | $ | — |  |  | $ | 318,495 |
Receivable from brokers and dealers and clearing organizations |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Deposits with clearing organizations |  | 20,523 |  |  | 20,523 |  |  | — |  |  | — |  |  | 20,523 |
Accounts receivable |  | 129,937 |  |  | — |  |  | 129,937 |  |  | — |  |  | 129,937 |
Other assets – Memberships in clearing organizations |  | 2,392 |  |  | — |  |  | — |  |  | 2,392 |  |  | 2,392 |
Total |  | $ | 471,347 |  |  | $ | 339,018 |  |  | $ | 129,937 |  |  | $ | 2,392 |  |  | $ | 471,347 |
Liabilities |  |  |  |  |  |  |  |  |  |
Payable to brokers and dealers and clearing organizations |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Total |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
The carrying value of financial instruments not measured at fair value classified within level 1 or level 2 of the fair value hierarchy approximates fair value because of the relatively short term nature of the underlying assets or liabilities. The memberships in clearing organizations, which are included in other assets on the condensed consolidated statements of financial condition, are classified within level 3 of the fair value hierarchy because the valuation requires assumptions that are both significant and unobservable. Financial Instruments Without Readily Determinable Fair Values Included in other assets on the condensed consolidated statements of financial condition are equity investments without readily determinable fair values of $21.0 million and $21.1 million as of June 30, 2022 and December 31, 2021, respectively. There were no impairments or adjustments to the carrying value of equity investments without readily determinable fair values during each of the three and six months ended June 30, 2022 and 2021 and no adjustments to the original cost basis recorded to the consolidated statements of operations have been made to the carrying value over the life of the instruments.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration