XML 29 R16.htm IDEA: XBRL DOCUMENT
v3.26.1

Derivative Financial Instruments | 3 Months Ended
--- | ---
Feb. 28, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Note 6. Derivative Financial Instruments Our derivative activities are recorded at fair value in our Consolidated Statement of Financial Condition in Financial instruments owned and Financial instruments sold, not yet purchased, net of cash paid or received under credit support agreements and on a net counterparty basis when a legally enforceable right to offset exists under a master netting agreement. We enter into derivative transactions to satisfy the needs of our clients and to manage our own exposure to market and credit risks. In addition, we apply hedge accounting to: (1) interest rate swaps that have been designated as fair value hedges of the changes in fair value due to the benchmark interest rate for certain fixed rate senior long-term debt, and (2) forward foreign exchange contracts designated as hedges to offset the change in the value of certain net investments in foreign operations. Derivatives are subject to various risks similar to other financial instruments, including market, credit and operational risk. The risks of derivatives should not be viewed in isolation, but rather should be considered on an aggregate basis along with our other trading-related activities. We manage the risks associated with derivatives on an aggregate basis along with the risks associated with proprietary trading as part of our firm wide risk management policies. In connection with our derivative activities, we may enter into International Swaps and Derivatives Association, Inc. master netting agreements or similar agreements with counterparties.
| February 28, 2026 (1)
| Assets | Liabilities
$ in thousands | Fair Value | Number of Contracts (2) | Fair Value | Number of Contracts (2)
Derivatives designated as accounting hedges: |  |  |  |
Interest rate contracts: |  |  |  |
Cleared OTC ........................................ | $3,515 | 3 | $1,256 | 1
Foreign exchange contracts: |  |  |  |
Bilateral OTC ....................................... | 10,449 | 5 | 2,543 | 6
Total derivatives designated as accounting hedges ............................ | 13,964 |  | 3,799 |
Derivatives not designated as accounting hedges: |  |  |  |
Interest rate contracts: |  |  |  |
Exchange-traded ................................ | 529 | 44,784 | 56 | 48,774
Cleared OTC ........................................ | 2,331,733 | 8,403 | 2,356,258 | 8,865
Bilateral OTC ....................................... | 267,009 | 1,702 | 577,234 | 683
Foreign exchange contracts: |  |  |  |
Exchange-traded ................................ | — | 36 | — | 22
Bilateral OTC ....................................... | 149,495 | 35,501 | 118,551 | 10,816
Equity contracts: |  |  |  |
Exchange-traded ................................ | 2,553,216 | 3,135,250 | 1,875,392 | 2,233,288
Bilateral OTC ....................................... | 1,693,580 | 53,207 | 1,901,935 | 44,644
Commodity contracts: |  |  |  |
Exchange-traded ................................ | 3,197 | 431 | 61 | 427
Bilateral OTC ....................................... | 4,445 | 7,198 | 9,626 | 8,209
Credit contracts: |  |  |  |
Cleared OTC ........................................ | 1,402 | 71 | 4,800 | 10
Bilateral OTC ....................................... | 75,525 | 33 | 53,711 | 19
Total derivatives not designated as accounting hedges ....................... | 7,080,131 |  | 6,897,624 |
Total gross derivative assets/ liabilities: |  |  |  |
Exchange-traded ................................ | 2,556,942 |  | 1,875,509 |
Cleared OTC ........................................ | 2,336,650 |  | 2,362,314 |
Bilateral OTC ....................................... | 2,200,503 |  | 2,663,600 |
Amounts offset in our Consolidated Statements of Financial Condition (3): |  |  |  |
Exchange-traded ................................ | (1,318,353) |  | (1,318,353) |
Cleared OTC ........................................ | (2,335,539) |  | (2,338,936) |
Bilateral OTC ....................................... | (1,533,021) |  | (1,943,147) |
Net amounts per Consolidated Statements of Financial Condition (4) ................................. | $1,907,182 |  | $1,300,987 |
(1)Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an organized exchange or central clearing counterparty. (2)The number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables from/Payables to brokers, dealers and clearing organizations. (3)Amounts netted include both netting by counterparty and for cash collateral paid or received. (4)We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in our Consolidated Statements of Financial Condition.
| November 30, 2025 (1)
| Assets | Liabilities
$ in thousands | Fair Value | Number of Contracts (2) | Fair Value | Number of Contracts (2)
Derivatives designated as accounting hedges: |  |  |  |
Interest rate contracts: |  |  |  |
Cleared OTC ......................................... | $— | — | $2,519 | 4
Foreign exchange contracts: |  |  |  |
Bilateral OTC ........................................ | 40,444 | 7 | 574 | 2
Total derivatives designated as accounting hedges ............................. | 40,444 |  | 3,093 |
Derivatives not designated as accounting hedges: |  |  |  |
Interest rate contracts: |  |  |  |
Exchange-traded ................................. | 232 | 33,107 | 24 | 36,811
Cleared OTC ......................................... | 806,009 | 8,148 | 804,799 | 8,325
Bilateral OTC ........................................ | 285,053 | 1,576 | 614,104 | 823
Foreign exchange contracts: |  |  |  |
Bilateral OTC ........................................ | 115,068 | 34,418 | 103,297 | 12,028
Equity contracts: |  |  |  |
Exchange-traded ................................. | 2,776,601 | 3,275,468 | 2,156,730 | 2,298,561
Bilateral OTC ........................................ | 1,367,089 | 57,254 | 1,670,215 | 36,481
Commodity contracts: |  |  |  |
Exchange-traded ................................. | 452 | 627 | 73 | 668
Bilateral OTC ....................................... | 6,381 | 18,497 | 7,293 | 15,417
Credit contracts: |  |  |  |
Cleared OTC ......................................... | 10,960 | 58 | 17,120 | 13
Bilateral OTC ........................................ | 121,557 | 17 | 98,456 | 15
Total derivatives not designated as accounting hedges ............................. | 5,489,402 |  | 5,472,111 |
Total gross derivative assets/ liabilities: |  |  |  |
Exchange-traded ................................. | 2,777,285 |  | 2,156,827 |
Cleared OTC ......................................... | 816,969 |  | 824,438 |
Bilateral OTC ........................................ | 1,935,592 |  | 2,493,939 |
Amounts offset in our Consolidated Statements of Financial Condition (3): |  |  |  |
Exchange-traded ................................. | (1,600,969) |  | (1,600,969) |
Cleared OTC ......................................... | (815,810) |  | (819,548) |
Bilateral OTC ........................................ | (1,288,985) |  | (1,564,670) |
Net amounts per Consolidated Statements of Financial Condition (4) .................................. | $1,824,082 |  | $1,490,017 |
(1)Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an organized exchange or central clearing counterparty. (2)The number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables from/Payables to brokers, dealers and clearing organizations. (3)Amounts netted include both netting by counterparty and for cash collateral paid or received. (4)We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what has been offset in our Consolidated Statements of Financial Condition. Gains (losses) recognized in Interest expense related to fair value hedges:
$ in thousands | Three Months Ended February 28,
Gains (Losses) | 2026 | 2025
Interest rate swaps (1) .............................................................. | $1,121 | $(5,628)
Long-term debt ........................................................................... | (10,916) | (6,691)
Total ............................................................................................. | $(9,795) | $(12,319)
(1)Includes net settlements of $9.6 million and $11.9 million for the three months ended February 28, 2026 and 2025, respectively. Gains (losses) on our net investment hedges recognized in Currency translation and other adjustments, a component of Other comprehensive income (loss), in our Consolidated Statements of Comprehensive Income:
$ in thousands | Three Months Ended February 28,
Gains (Losses) | 2026 | 2025
Foreign exchange contracts ..................................................... | $(27,965) | $16,854
Total ............................................................................................. | $(27,965) | $16,854
Unrealized and realized gains (losses) on derivative contracts recognized primarily in Principal transactions revenues, which are utilized in connection with our client activities and our economic risk management activities:
$ in thousands | Three Months Ended February 28,
Gains (Losses) | 2026 | 2025
Interest rate contracts ............................................................... | $267 | $(22,502)
Foreign exchange contracts ..................................................... | (1,731) | (4,875)
Equity contracts ......................................................................... | (119,375) | 494,216
Commodity contracts ................................................................ | 4,282 | 5,734
Credit contracts.......................................................................... | (3,058) | 1,051
Total ............................................................................................. | $(119,615) | $473,624
The net gains (losses) on derivative contracts in the table above are one of a number of activities comprising our business activities and are before consideration of economic hedging transactions, which generally offset the net gains (losses) included above. We substantially mitigate our exposure to market risk on our cash instruments through derivative contracts, which generally provide offsetting revenues, and we manage the risk associated with these contracts in the context of our overall risk management framework. OTC Derivatives Remaining contract maturities at February 28, 2026:
| OTC Derivative Assets (1) (2) (3)
$ in thousands | 0 – 12 Months | 1 – 5 Years | Greater Than 5 Years | Cross- Maturity Netting (4) | Total
Commodity swaps, options and forwards .................................... | $4,444 | $— | $— | $— | $4,444
Equity options and forwards ........ | 88,003 | 295,129 | 5,110 | (269) | 387,973
Credit default swaps ..................... | 1,012 | 25,469 | — | — | 26,481
Total return swaps ......................... | 174,444 | 180,251 | — | (5,324) | 349,371
Foreign currency forwards, swaps and options ................... | 86,314 | 520 | — | (520) | 86,314
Fixed income forwards ................. | 49,222 | — | — | — | 49,222
Interest rate swaps, options and forwards .................................... | 57,588 | 152,609 | 17,081 | (32,665) | 194,613
Total ................................................. | $461,027 | $653,978 | $22,191 | $(38,778) | 1,098,418
Cross-product counterparty netting ........................................ |  |  |  |  | (61,334)
Total OTC derivative assets included in Financial instruments owned .................. |  |  |  |  | $1,037,084
| OTC Derivative Liabilities (1) (2) (3)
$ in thousands | 0 – 12 Months | 1 – 5 Years | Greater Than 5 Years | Cross- Maturity Netting (4) | Total
Commodity swaps, options and forwards .................................... | $9,624 | $— | $— | $— | $9,624
Equity options and forwards ........ | 52,569 | 293,741 | 3,879 | (269) | 349,920
Credit default swaps ...................... | — | 5,643 | — | — | 5,643
Total return swaps ......................... | 331,760 | 316,070 | 28 | (5,324) | 642,534
Foreign currency forwards, swaps and options ................... | 47,768 | 216 | — | (520) | 47,464
Fixed income forwards ................. | 797 | — | — | — | 797
Interest rate swaps, options and forwards .................................... | 34,569 | 108,293 | 421,001 | (32,665) | 531,198
Total ................................................. | $477,087 | $723,963 | $424,908 | $(38,778) | 1,587,180
Cross-product counterparty netting ........................................ |  |  |  |  | (61,334)
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased ................................. |  |  |  |  | $1,525,846
(1)At February 28, 2026, we held net exchange-traded derivative assets and liabilities with a fair value of $1.24 billion and $557.2 million, respectively, which are not included in these tables. (2)OTC derivative assets and liabilities in the tables above are gross of collateral pledged. OTC derivative assets and liabilities are recorded net of collateral pledged in our Consolidated Statements of Financial Condition. At February 28, 2026, cash collateral received and pledged was $368.5 million and $782.0 million, respectively. (3)Derivative fair values include counterparty netting within product category. (4)Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories. OTC derivative assets at February 28, 2026:
Counterparty credit quality (1): | $ in thousands
A- or higher ............................................................................................... | $180,384
BBB- to BBB+ ........................................................................................... | 100,766
BB+ or lower ............................................................................................. | 332,366
Unrated ..................................................................................................... | 423,568
Total .......................................................................................................... | $1,037,084
(1)We utilize internal credit ratings determined by our Risk Management department. Credit ratings determined by Risk Management use methodologies that produce ratings generally consistent with those produced by external rating agencies. Credit Related Derivative Contracts External credit ratings of the underlyings or referenced assets for our written credit related derivative contracts:
| February 28, 2026
| External Credit Rating |
$ in millions | Investment Grade | Non- investment Grade | Total Notional
Credit protection sold: |  |  |
Index credit default swaps ..................... | $119.8 | $808.5 | $928.3
| November 30, 2025
| External Credit Rating |
$ in millions | Investment Grade | Non- investment Grade | Total Notional
Credit protection sold: |  |  |
Index credit default swaps ..................... | $51.4 | $873.2 | $924.6
Contingent Features Certain derivative instruments contain provisions that require us to either post additional collateral or immediately settle any outstanding liability balances upon a specific event related to our credit, primarily downgrades in our credit ratings. The following table presents the aggregate fair value of all derivative instruments with such credit-risk-related contingent features that are in a net liability position, the collateral amounts we have posted or received in the normal course of business and the potential collateral we could have been required to return and/or post additionally to our counterparties if the credit-risk-related contingent features underlying these agreements were triggered:
$ in millions | February 28, 2026 | November 30, 2025
Derivative instrument liabilities with credit-risk- related contingent features .................................... | $98.9 | $107.3
Collateral posted ........................................................... | (13.2) | (70.0)
Collateral received ........................................................ | 611.4 | 343.3
Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) ............................................... | 697.1 | 380.5
(1)These potential outflows include initial margin received from counterparties at the execution of the derivative contract. The initial margin will be returned if counterparties elect to terminate the contract after a downgrade.

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

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 182 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-182 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 185 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-185 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 184 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-184 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 181 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-181 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(5) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4H -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4H Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4H -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4H Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 15 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480960/815-15-50-3 Reference 13: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 183 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-183 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(4) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4I -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4I Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4F -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4F Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(iii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(ii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1B Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 26: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 27: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 28: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 29: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent Reference 30: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 31: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration