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Fair Value of Financial Instruments
 6 Months Ended
Jun. 30, 2024
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, 2024 and December 31, 2023 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
(dollars in thousands)
As of June 30, 2024
Assets
Cash equivalents – Money market funds and other highly liquid investments$1,562,815 $— $— $1,562,815 
Receivable and due from affiliates – Foreign exchange derivative contracts— 2,626 — 2,626 
Other assets – Investment in available for sale debt securities— — 10,102 10,102 
Total assets measured at fair value$1,562,815 $2,626 $10,102 $1,575,543 
As of December 31, 2023
Assets
Cash equivalents – Money market funds and other highly liquid investments$1,543,644 $— $— $1,543,644 
Total assets measured at fair value$1,543,644 $— $— $1,543,644 
Liabilities
Payable and due to affiliates – Foreign exchange derivative contracts
$— $775 $— $775 
Total liabilities measured at fair value$— $775 $— $775 
The Company’s cash equivalents are classified within level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets.
In April 2024, the Company made an investment in a convertible note with a principal amount and original amortized cost basis of $10.0 million. The note accrues interest at a rate of 5% per annum, compounded annually, and matures on the earliest to occur of January 19, 2027, an event of default or a change in control as each term is defined in the convertible note. The note and accrued interest will convert to equity securities of the issuer on January 19, 2027, if not previously repaid or converted upon certain defined financing events. The convertible note is accounted for as an available-for-sale debt security and the convertible note and accrued interest is included within other assets on the accompanying condensed consolidated statements of financial condition at a fair value and amortized cost basis of $10.1 million as of June 30, 2024. There were no fair value adjustments or credit losses recorded on the convertible note during the three and six months ended June 30, 2024. The convertible note is classified within level 3 of the fair value hierarchy because the valuation requires assumptions that are both significant and unobservable. The primary methods used to estimate the fair value of the convertible note were a discounted cash flow analysis and a probability-weighted expected return model which incorporated the credit risk of the issuer and scenarios in which the note would convert into equity, the estimated equity value of the issuer and the conversion terms outlined in the convertible note agreement. Significant unobservable inputs included a discount rate of 15%. Significant increases or decreases in the discount rate would have resulted in a significantly lower or higher fair value measurement.
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 12 months. On June 1, 2023, the Company entered into a foreign currency call option on Australian dollars, giving the Company an option to buy A$120.7 million ($79.9 million U.S. dollars as translated as of June 30, 2023), in order to partially mitigate the Company’s U.S. dollar versus Australian dollar foreign exchange exposure on the then anticipated payment of the Australian dollar denominated purchase price for the Yieldbroker acquisition. The valuations for the Company’s foreign currency forward contracts and foreign currency call option are primarily based on the difference between the exchange rate associated with the contract and the exchange rate at the current period end for the tenor of the contract. Foreign currency forward contracts and the foreign currency call option are categorized as Level 2 in the fair value hierarchy. As of June 30, 2024 and December 31, 2023, the counterparty on each of these foreign exchange derivative contracts was an affiliate of LSEG and therefore the corresponding assets or liabilities on such contracts were included in receivable and due from affiliates or payable and due to affiliates, respectively, 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 exchange derivative contracts not designated as hedges for accounting purposes:
  June 30,December 31,
20242023
(dollars in thousands)
Foreign currency forward contracts – Gross notional amount$229,131 $192,877 
The Company’s foreign exchange derivative 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. The total realized and unrealized gains (losses) on foreign exchange derivative contracts recorded within the condensed consolidated statements of income are as follows:
Three Months EndedSix Months Ended
June 30,June 30,
2024202320242023
(dollars in thousands)
Foreign currency forward contracts not designated in accounting hedge relationship – General and administrative (expenses)/income$2,560 $2,198 $6,911 $1,038 
Foreign currency call option contract not designated in accounting hedge relationship – Other income/(loss) (1)
$— $618 $— $618 
(1) On June 1, 2023, the Company entered into a foreign currency call option on Australian dollars, in order to partially mitigate the Company’s U.S. dollar versus Australian dollar foreign exchange exposure on the then-anticipated payment of the Australian dollar denominated purchase price for the Yieldbroker Acquisition. On August 25, 2023, the Company unwound the out-of-the-money foreign currency call option and received $1.1 million.
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, 2024 and December 31, 2023 have been categorized based upon the fair value hierarchy as follows:
Carrying ValueQuoted 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, 2024(dollars in thousands)
Assets
Cash and restricted cash$156,415 $156,415 $— $— $156,415 
Receivable from brokers and dealers and clearing organizations432,037 — 432,037 — 432,037 
Deposits with clearing organizations62,694 62,694 — — 62,694 
Accounts receivable233,084 — 233,084 — 233,084 
Other assets – Memberships in clearing organizations
2,907 — — 2,907 2,907 
Total$887,137 $219,109 $665,121 $2,907 $887,137 
Liabilities
Securities sold under agreements to repurchase
$— $— $— $— $— 
Payable to brokers and dealers and clearing organizations424,751 — 424,751 — 424,751 
Total$424,751 $— $424,751 $— $424,751 
As of December 31, 2023
Assets
Cash and restricted cash$163,824 $163,824 $— $— $163,824 
Receivable from brokers and dealers and clearing organizations381,178 — 381,178 — 381,178 
Deposits with clearing organizations36,806 36,806 — — 36,806 
Accounts receivable168,407 — 168,407 — 168,407 
Other assets – Memberships in clearing organizations
2,426 — — 2,426 2,426 
Total$752,641 $200,630 $549,585 $2,426 $752,641 
Liabilities
Securities sold under agreements to repurchase(1)
$21,612 $— $21,612 $— $21,612 
Payable to brokers and dealers and clearing organizations351,864 — 351,864 — 351,864 
Total$373,476 $— $373,476 $— $373,476 
(1)As of December 31, 2023, Treasury securities with a fair value of $21.6 million collateralized the securities sold under agreements to repurchase liability. The liability amounts presented represent the gross liability and are not offset on the condensed consolidated statements of financial condition. The securities sold under agreements to repurchase liability were subsequently settled on January 2, 2024.
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.
Non-recurring Fair Value Measurements
The Company measures certain assets and liabilities, such as assets acquired in a business combination, at fair value as of the acquisition date. See Note 4 – Acquisitions for further details regarding these non-recurring fair value measurements.
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 $10.5 million and $8.9 million as of June 30, 2024 and December 31, 2023, respectively. These equity investments are subject to general contractual sale restrictions that prohibit the transfer or sale of the investment without prior consent of the investee.