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RELATED PARTY TRANSACTIONS | 9 Months Ended
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Dec. 31, 2023
Related Party Transactions [Abstract] |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The following table presents related party transactions as of December 31, 2023, and March 31, 2023:
| December 31, 2023 |  | March 31, 2023
| Related party balances |  | Total category as per financial statements captions |  | Related party balances |  | Total category as per financial statements captions
ASSETS |  |  |  |  |  |  |
Cash and cash equivalents | $ | — |  |  | $ | 561,883 |  |  | $ | 35,549 |  |  | $ | 581,417 |
Companies controlled by management | — |  |  |  |  | 35,549 |  |  |
Restricted cash | 67,215 |  |  | $ | 384,553 |  |  | $ | 114,885 |  |  | $ | 445,528 |
Companies controlled by management | 67,215 |  |  |  |  | 114,885 |  |  |
Trading securities | $ | 16,220 |  |  | $ | 3,680,453 |  |  | $ | 556 |  |  | $ | 2,412,556 |
Companies controlled by management | 16,220 |  |  |  |  | 556 |  |  |
Margin lending, brokerage and other receivables, net | $ | 43,241 |  |  | $ | 961,392 |  |  | $ | 295,611 |  |  | $ | 376,329 |
Management | 14,036 |  |  |  |  | 4,209 |  |  |
Companies controlled by management | 29,205 |  |  |  |  | 291,402 |  |  |
Loans issued | $ | 144,289 |  |  | $ | 1,346,005 |  |  | $ | 121,316 |  |  | $ | 826,258 |
Management | 116 |  |  |  |  | 139 |  |  |
Companies controlled by management | 144,173 |  |  |  |  | 121,177 |  |  |
Other assets, net | $ | 533 |  |  | $ | 88,244 |  |  | $ | 16,102 |  |  | $ | 73,463 |
Companies controlled by management | 533 |  |  |  |  | 16,102 |  |  |
LIABILITIES |  |  |  |  |  |  |
Customer liabilities | $ | 112,701 |  |  | $ | 2,248,042 |  |  | $ | 130,210 |  |  | $ | 1,925,247 |
Management | 5,243 |  |  |  |  | 19,789 |  |  |
Companies controlled by management | 106,561 |  |  |  |  | 110,253 |  |  |
Other | 897 |  |  |  |  | 168 |  |  |
Margin lending and trade payables | $ | 474 |  |  | $ | 145,804 |  |  | $ | 3,721 |  |  | $ | 122,900 |
Management | 222 |  |  |  |  | 227 |  |  |
Companies controlled by management | 252 |  |  |  |  | 3,494 |  |  |
Other liabilities | $ | 11,783 |  |  | $ | 61,447 |  |  | $ | 46 |  |  | $ | 30,060 |
Management | 7,700 |  |  |  |  | — |  |  |
Companies controlled by management | 4,074 |  |  |  |  | 46 |  |  |
Other | 9 |  |  |  |  | — |  |  |
| Three Months Ended December 31,
| 2023 |  | 2022
| Related party transactions |  | Total category as per financial statements captions |  | Related party transactions |  | Total category as per financial statements captions
Revenue: |  |  |  |  |  |  |
Fee and commission income | $ | 30,112 |  |  | $ | 120,159 |  |  | $ | 44,590 |  |  | $ | 80,883 |
Management | 226 |  |  |  |  | 149 |  |  |
Companies controlled by management | 29,878 |  |  |  |  | 44,441 |  |  |
Other | 8 |  |  |  | — |  |  |
Interest income | $ | 7,566 |  |  | $ | 226,445 |  |  | $ | 10,796 |  |  | $ | 80,255 |
Management | 208 |  |  |  |  | — |  |  |
Companies controlled by management | 7,358 |  |  |  |  | 10,796 |  |  |
Net gain on foreign exchange operations | $ | 593 |  |  | $ | 38,825 |  |  | $ | — |  |  | $ | 20,866 |
Management | 13 |  |  |  | — |  |  |
Companies controlled by management | 580 |  |  |  | — |  |  |
Expense: |  |  |  |  |  |  |
Fee and commission expense | $ | 55 |  |  | $ | 42,818 |  |  | $ | 2,304 |  |  | $ | 18,314 |
Companies controlled by management | 55 |  |  |  |  | 2,304 |  |  |
Interest expense | $ | 230 |  |  | $ | 131,223 |  |  | $ | 82 |  |  | $ | 52,037 |
Management | 62 |  |  |  |  | 1 |  |  |
Companies controlled by management | 160 |  |  |  |  | 81 |  |  |
Other | 8 |  |  |  |  | — |  |  |
General and administrative expenses | $ | 1,502 |  |  | $ | 32,106 |  |  | $ | 600 |  |  | $ | 16,428 |
Management | 226 |  |  |  |  | 105 |  |  |
Companies controlled by management | 1,041 |  |  |  |  | 495 |  |  |
Other | 235 |  |  |  |  | — |  |  |
| Nine Months Ended December 31,
| 2023 |  | 2022
| Related party transactions |  | Total category as per financial statements captions |  | Related party transactions |  | Total category as per financial statements captions
Revenue: |  |  |  |  |  |  |
Fee and commission income | $ | 66,029 |  |  | $ | 330,565 |  |  | $ | 181,396 |  |  | $ | 253,486 |
Management | 691 |  |  |  |  | 382 |  |  |
Companies controlled by management | 65,322 |  |  |  |  | 181,014 |  |  |
Other | 16 |  |  |  |  | — |  |  |
Interest income | $ | 22,650 |  |  | $ | 588,857 |  |  | $ | 21,659 |  |  | $ | 187,817 |
Management | 512 |  |  |  |  | — |  |  |
Companies controlled by management | 22,137 |  |  |  |  | 21,659 |  |  |
Other | 1 |  |  |  |  | — |  |  |
Net gain on foreign exchange operations | $ | 5,236 |  |  | $ | 54,430 |  |  | $ | — |  |  | $ | 30,014 |
Management | 14 |  |  |  |  | — |  |  |
Companies controlled by management | 5,222 |  |  |  |  | — |  |  |
Expense: |  |  |  |  |  |  |
Fee and commission expense | $ | 235 |  |  | $ | 103,116 |  |  | $ | 2,657 |  |  | $ | 60,068 |
Companies controlled by management | 235 |  |  |  |  | 2,657 |  |  |
Interest expense | $ | 635 |  |  | $ | 365,650 |  |  | $ | 129 |  |  | $ | 132,971 |
Management | 236 |  |  |  | 1 |  |  |
Companies controlled by management | 384 |  |  |  | 128 |  |  |
Other | 15 |  |  |  | — |  |  |
General and administrative expenses | $ | 9,063 |  |  | $ | 86,211 |  |  | $ | 803 |  |  | $ | 40,943 |
Management | 397 |  |  |  |  | 269 |  |  |
Companies controlled by management | 8,346 |  |  |  |  | 534 |  |  |
Other | 320 |  |  |  |  | — |  |  |
During the three months ended December 31, 2023 and 2022, the Group engaged in various related party transactions, a substantial amount of which were conducted with FST Belize, a Belize company which is wholly owned personally by the Company’s chief executive officer, chairman and majority shareholder, Timur Turlov, and is not part of the FRHC group of companies. FST Belize has its own brokerage customers, which include individuals and market-maker institutions and conducts business with the Group through a client omnibus account at Freedom EU. Fee and commission income earned from related parties is comprised primarily of brokerage commissions principally FST Belize. Fee and commission income earned from FST Belize principally consists of fees and commissions paid by FST Belize to Freedom EU to execute trades requested by brokerage customers of FST Belize, as well as commissions paid by FST Belize for order flow, which is net compensation received from firms to which the Company's broker-dealer subsidiaries send equity and options orders, and fees for outstanding short sale positions. For the three months ended December 31, 2023 and 2022, the Group's earned fee and commission income from FST Belize accounted for approximately 96% and 98% of the Group's total related party fee and commission income. For the nine months ended December 31, 2023 and 2022, the Group's fee and commission income from FST Belize accounted for approximately 96% and 93% of the Group's total related party fee and commission income. Interest income earned from related parties is comprised entirely of interest income from FST Belize, principally interest income from margin lending. For the three months ended December 31, 2023 and 2022, the Group's interest income generated from FST Belize accounted for approximately 92% and 100% of the Group's total related party interest income. For the nine months ended December 31, 2023 and 2022, the Group's interest income from FST Belize accounted for approximately 96% and 100% of the Group's total related party interest income. Margin lending, brokerage and other receivables from related parties principally represent margin lending receivables in respect of margin loans granted by Freedom EU to FST Belize. As of December 31, 2023 and March 31, 2023, the Group's margin lending receivables from FST Belize accounted for 63% and 98% of the Group's total margin lending, brokerage and other receivables from related parties. As of December 31, 2023 and March 31, 2023, 75% and 18%, respectively, of the Group's customer liabilities were deposits from FST Belize held by Freedom EU related to brokerage services provided by Freedom EU to FST Belize. As of December 31, 2023 and March 31, 2023, the Group had loans issued which included uncollateralized bank customer loans purchased from a related party, FFIN Credit, a company outside of the FRHC group which is controlled by Timur Turlov. Margin lending, brokerage and related banking services were provided to related parties pursuant to standard client account agreements and at standard market rates.

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