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Fair Value Measurements | 6 Months Ended
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Jun. 30, 2014
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”) establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily-available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Investments measured and reported at fair value are classified and disclosed in one of the following categories: Level I – Quoted prices are available in active markets for identical investments as of the reporting date. The type of investments included in Level I include listed equities and listed derivatives. As required by ASC 820, the Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price. Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. The estimated fair values of the Corporate Bonds, Municipal Bonds, Other Debt Securities and Securities Investments held at June 30, 2014 and December 31, 2013 are based on quoted market prices provided by external pricing services. Level III – Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. The following table presents the categorization of investments and certain other financial assets measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013:
| June 30, 2014
| Level I |  | Level II |  | Level III |  | Total
Corporate Bonds, Municipal Bonds and Other Debt Securities (1) | $ | — |  |  | $ | 33,827 |  |  | $ | — |  |  | $ | 33,827 |
Securities Investments (1) | 7,700 |  |  | 1,672 |  |  | — |  |  | 9,372 |
Mutual Funds | 5,772 |  |  | — |  |  | — |  |  | 5,772 |
Financial Instruments Owned and Pledged as Collateral at Fair Value | 76,773 |  |  | — |  |  | — |  |  | 76,773 |
Total Assets Measured At Fair Value | $ | 90,245 |  |  | $ | 35,499 |  |  | $ | — |  |  | $ | 125,744 |
| December 31, 2013
| Level I |  | Level II |  | Level III |  | Total
Corporate Bonds, Municipal Bonds and Other Debt Securities (1) | $ | — |  |  | $ | 33,882 |  |  | $ | — |  |  | $ | 33,882 |
Securities Investments (1) | 12,001 |  |  | 2,398 |  |  | — |  |  | 14,399 |
Mutual Funds | 9,380 |  |  | — |  |  | — |  |  | 9,380 |
Financial Instruments Owned and Pledged as Collateral at Fair Value | 56,311 |  |  | — |  |  | — |  |  | 56,311 |
Total Assets Measured At Fair Value | $ | 77,692 |  |  | $ | 36,280 |  |  | $ | — |  |  | $ | 113,972 |
(1) | Includes $12,673 and $14,254 of treasury bills, municipal bonds and commercial paper classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of June 30, 2014 and December 31, 2013, respectively.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. The Company had no transfers between fair value levels during the six months ended June 30, 2014 or the year ended December 31, 2013. The carrying amount and estimated fair value of the Company’s financial instrument assets and liabilities, which are not measured at fair value on the Unaudited Condensed Consolidated Statements of Financial Condition, are listed in the tables below.
|  |  | June 30, 2014
| Carrying |  | Estimated Fair Value
| Amount |  | Level I |  | Level II |  | Level III |  | Total
Financial Assets: |  |  |  |  |  |  |  |  |
Cash and Cash Equivalents | $ | 180,423 |  |  | $ | 180,423 |  |  | $ | — |  |  | $ | — |  |  | $ | 180,423 |
Accounts Receivable | 100,325 |  |  | — |  |  | 100,325 |  |  | — |  |  | 100,325 |
Receivable from Employees and Related Parties | 9,455 |  |  | — |  |  | 9,455 |  |  | — |  |  | 9,455 |
Assets Segregated for Bank Regulatory Requirements | 10,200 |  |  | 10,200 |  |  | — |  |  | — |  |  | 10,200 |
Financial Liabilities: |  |  |  |  |  |  |  |  |
Accounts Payable and Accrued Expenses | $ | 36,156 |  |  | $ | — |  |  | $ | 36,156 |  |  | $ | — |  |  | $ | 36,156 |
Securities Sold Under Agreements to Repurchase | 76,874 |  |  | — |  |  | 76,874 |  |  | — |  |  | 76,874 |
Payable to Employees and Related Parties | 17,548 |  |  | — |  |  | 17,548 |  |  | — |  |  | 17,548 |
Notes Payable | 104,207 |  |  | — |  |  | 131,257 |  |  | — |  |  | 131,257 |
|  |  | December 31, 2013
| Carrying |  | Estimated Fair Value
| Amount |  | Level I |  | Level II |  | Level III |  | Total
Financial Assets: |  |  |  |  |  |  |  |  |
Cash and Cash Equivalents | $ | 284,199 |  |  | $ | 284,199 |  |  | $ | — |  |  | $ | — |  |  | $ | 284,199 |
Securities Purchased Under Agreements to Resell | 19,134 |  |  | — |  |  | 19,134 |  |  | — |  |  | 19,134 |
Accounts Receivable | 83,347 |  |  | — |  |  | 83,347 |  |  | — |  |  | 83,347 |
Receivable from Employees and Related Parties | 9,233 |  |  | — |  |  | 9,233 |  |  | — |  |  | 9,233 |
Assets Segregated for Bank Regulatory Requirements | 10,200 |  |  | 10,200 |  |  | — |  |  | — |  |  | 10,200 |
Financial Liabilities: |  |  |  |  |  |  |  |  |
Accounts Payable and Accrued Expenses | $ | 18,365 |  |  | $ | — |  |  | $ | 18,365 |  |  | $ | — |  |  | $ | 18,365 |
Securities Sold Under Agreements to Repurchase | 75,563 |  |  | — |  |  | 75,563 |  |  | — |  |  | 75,563 |
Payable to Employees and Related Parties | 19,524 |  |  | — |  |  | 19,524 |  |  | — |  |  | 19,524 |
Notes Payable | 103,226 |  |  | — |  |  | 127,425 |  |  | — |  |  | 127,425 |
The following methods and assumptions were used to estimate the fair value of these financial assets and liabilities: The fair value of the Company’s Notes Payable is estimated based on a present value analysis utilizing aggregate market yields obtained from independent pricing sources for similar financial instruments. The carrying amounts reported on the Unaudited Condensed Consolidated Statements of Financial Condition for Cash and Cash Equivalents, Securities Purchased Under Agreements to Resell, Securities Sold Under Agreements to Repurchase, Accounts Receivable, Receivables from Employees and Related Parties, Accounts Payable and Accrued Expenses, Payables to Employees and Related Parties and Assets Segregated for Bank Regulatory Requirements approximate fair value due to the short-term nature of these items.

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- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=28364263&loc=d3e13537-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=28364263&loc=d3e13433-108611 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=25499696&loc=d3e19207-110258 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=28364263&loc=d3e13504-108611 + Details
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