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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.