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Financial Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Summary of fair value measurements measured on a recurring basis

Fair value measurements for those items measured on a recurring basis are summarized below as of March 31, 2019:

		March 31, 2019
(in thousands)		Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Counterparty and Cash Collateral Netting				Total Fair Value
Assets
Financial instruments owned, at fair value:
Equity securities		$	733,310			$	1,198,175			$	—			$	—			$	1,931,485
U.S. and Non-U.S. government obligations		152,884				17,558				—				—				170,442
Corporate Bonds		—				82,412				—				—				82,412
Exchange traded notes		14,360				5,801				—				—				20,161
Currency forwards		—				1,212,911				—				(1,209,506		)		3,405
Options		3,914				—				—				—				3,914
		904,468				2,516,857				—				(1,209,506		)		2,211,819
Financial instruments owned, pledged as collateral:
Equity securities		376,711				320,379				—				—				697,090
Exchange traded notes		18				43,522				—				—				43,540
		376,729				363,901				—				—				740,630
Other Assets
Equity investment		—				—				46,529				—				46,529
Exchange stock		2,517				—				—				—				2,517
		2,517				—				46,529				—				49,046
Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities		1,005,560				1,082,273				—				—				2,087,833
U.S. and Non-U.S. government obligations		69,364				834				—				—				70,198
Corporate Bonds		—				99,587				—				—				99,587
Exchange traded notes		3,843				28,805				—				—				32,648
Currency forwards		—				1,219,684				—				(1,219,684		)		—
Options		4,359				—				—				—				4,359
		$	1,083,126			$	2,431,183			$	—			$	(1,219,684	)		$	2,294,625

Fair value measurements for those items measured on a recurring basis are summarized below as of December 31, 2018:

		December 31, 2018
(in thousands)		Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)				Counterparty and Cash Collateral Netting				Total Fair Value
Assets
Financial instruments owned, at fair value:
Equity securities		$	587,680			$	1,022,221			$	—			$	—			$	1,609,901
U.S. and Non-U.S. government obligations		91,466				14,547				—				—				106,013
Corporate Bonds		—				87,500				—				—				87,500
Exchange traded notes		3,396				27,966				—				—				31,362
Currency forwards		—				2,792,373				—				(2,790,242		)		2,131
Options		11,899				—				—				—				11,899
		694,441				3,944,607				—				(2,790,242		)		1,848,806
Financial instruments owned, pledged as collateral:
Equity securities		389,810				359,036				—				—				748,846
U.S. and Non-U.S. government obligations		—				—				—				—				—
Exchange traded notes		6,968				35,301				—				—				42,269
		396,778				394,337				—				—				791,115
Other Assets
Equity investment		—				—				45,856				—				45,856
Exchange stock		2,417				—				—				—				2,417
		2,417				—				45,856				—				48,273
Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities		931,992				1,336,338				—				—				2,268,330
U.S. and Non-U.S. government obligations		112,058				3,054				—				—				115,112
Corporate Bonds		—				40,123				—				—				40,123
Exchange traded notes		371				39,613				—				—				39,984
Currency forwards		—				2,720,749				—				(2,719,954		)		795
Options		11,051				—				—				—				11,051
		$	1,055,472			$	4,139,877			$	—			$	(2,719,954	)		$	2,475,395

The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of March 31, 2019:

		March 31, 2019
										Quoted Prices in Active Markets for Identical Assets				Significant Other Observable Inputs				Significant Unobservable Inputs
(in thousands)		Carrying Value				Fair Value				(Level 1)				(Level 2)				(Level 3)
Assets
Cash and cash equivalents		$	771,003			$	771,003			$	771,003			$	—			$	—
Cash restricted or segregated under regulations and other		17,324				17,324				17,324				—				—
Securities borrowed		1,282,867				1,282,867				—				1,282,867				—
Securities purchased under agreements to resell		5,655				5,655				—				5,655				—
Receivables from broker-dealers and clearing organizations		1,187,720				1,187,720				5,001				1,182,719				—
Total Assets		3,264,569				3,264,569				793,328				2,471,241				—
Liabilities
Short-term borrowings		159,716				159,716				—				159,716				—
Long-term borrowings		1,977,716				2,052,816				—				2,052,816				—
Securities loaned		819,903				819,903				—				819,903				—
Securities sold under agreements to repurchase		290,000				290,000				—				290,000				—
Payables to broker-dealers and clearing organizations		987,842				987,842				3,836				984,006				—
Total Liabilities		$	4,235,177			$	4,310,277			$	3,836			$	4,306,441			$	—

The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of December 31, 2018:

		December 31, 2018
										Quoted Prices in Active Markets for Identical Assets				Significant Other Observable Inputs				Significant Unobservable Inputs
(in thousands)		Carrying Value				Fair Value				(Level 1)				(Level 2)				(Level 3)
Assets
Cash and cash equivalents		$	736,047			$	736,047			$	736,047			$	—			$	—
Securities borrowed		1,399,684				1,399,684				—				1,399,684				—
Securities purchased under agreements to resell		15,475				15,475				—				15,475				—
Receivables from broker-dealers and clearing organizations		1,101,449				1,101,449				71,288				1,030,161				—
Total Assets		3,252,655				3,252,655				807,335				2,445,320				—
Liabilities
Short-term borrowings		15,128				15,128				—				15,128				—
Long-term borrowings		907,037				916,465				—				916,465				—
Securities loaned		1,130,039				1,130,039				—				1,130,039				—
Securities sold under agreements to repurchase		281,861				281,861				—				281,861				—
Payables to broker dealer and clearing organizations		567,441				567,441				1,031				566,410				—
Total Liabilities		$	2,901,506			$	2,910,934			$	1,031			$	2,909,903			$	—

Summary of changes in Level 3 financial instruments measured at fair value on a recurring basis

The following presents the changes in Level 3 financial instruments measured at fair value on a recurring basis:

		Three Months Ended March 31, 2019
(in thousands)		Balance at December 31, 2018				Purchases				Total Realized and Unrealized Gains / (Losses)				Net Transfers into (out of) Level 3				Settlement				Balance at March 31, 2019				Change in Net Unrealized Gains / (Losses) on Investments still held at March 31, 2019
Assets
Other assets:
Equity investment		$	45,856			$	—			$	673			$	—			$	—			$	46,529			$	673
Total		45,856				—				673				—				—				46,529				673

		Three months ended March 31, 2018
(in thousands)		Balance at December 31, 2017				Purchases				Total Realized and Unrealized Gains / (Losses)				Net Transfers into (out of) Level 3				Settlement				Balance at March 31, 2018				Change in Net Unrealized Gains / (Losses) on Investments still held at March 31, 2018
Assets
Other assets:
Equity investment		$	40,588			$	—			$	1,890			$	—			$	—			$	42,478			$	1,890
Total		40,588				—				1,890				—				—				42,478				1,890

Summary of netting of certain financial assets and financial liabilities

The following tables set forth the gross and net presentation of certain financial assets and financial liabilities as of March 31, 2019 and December 31, 2018:

		March 31, 2019
		Gross Amounts of Recognized Assets				Gross Amounts Offset in the Condensed Consolidated Statement of Financial Condition				Net Amounts of Assets Presented in the Condensed Consolidated Statement of Financial Condition
														Gross Amounts Not Offset In the Condensed Consolidated Statement of Financial Condition
(in thousands)														Financial Instruments				Cash Collateral Received				Net Amount
Offsetting of Financial Assets:
Securities borrowed		$	1,282,867			$	—			$	1,282,867			$	(1,246,913	)		$	(698	)		$	35,256
Securities purchased under agreements to resell		5,655				—				5,655				(5,650		)		—				5
Trading assets, at fair value:
Currency forwards		1,212,911				(1,209,506		)		3,405				—				—				3,405
Options		3,914				—				3,914				(3,914		)		—				—
Total		$	2,505,347			$	(1,209,506	)		$	1,295,841			$	(1,256,477	)		$	(698	)		$	38,666

		Gross Amounts of Recognized Liabilities				Gross Amounts Offset in the Condensed Consolidated Statement of Financial Condition				Net Amounts of Liabilities Presented in the Condensed Consolidated Statement of Financial Condition
														Gross Amounts Not Offset In the Condensed Consolidated Statement of Financial Condition
(in thousands)														Financial Instruments				Cash Collateral Pledged				Net Amount
Offsetting of Financial Liabilities:
Securities loaned		$	819,903			$	—			$	819,903			$	(806,960	)		$	(5,242	)		$	7,701
Securities sold under agreements to repurchase		290,000				—				290,000				(290,000		)		—				—
Trading liabilities, at fair value:
Currency forwards		1,219,684				(1,219,684		)		—				—				—				—
Options		4,359				—				4,359				(3,914		)		—				445
Total		$	2,333,946			$	(1,219,684	)		$	1,114,262			$	(1,100,874	)		$	(5,242	)		$	8,146

		December 31, 2018
		Gross Amounts of Recognized Assets				Gross Amounts Offset in the Consolidated Statement of Financial Condition				Net Amounts of Assets Presented in the Consolidated Statement of Financial Condition
														Gross Amounts Not Offset In the Consolidated Statement of Financial Condition
(in thousands)														Financial Instruments				Cash Collateral Received				Net Amount
Offsetting of Financial Assets:
Securities borrowed		$	1,399,684			$	—			$	1,399,684			$	(1,361,635	)		$	(8,822	)		$	29,227
Securities purchased under agreements to resell		15,475				—				15,475				(15,475		)		—				—
Trading assets, at fair value:
Currency forwards		2,792,373				(2,790,242		)		2,131				—				—				2,131
Options		11,899				—				11,899				(11,899		)		—				—
Total		$	4,219,431			$	(2,790,242	)		$	1,429,189			$	(1,389,009	)		$	(8,822	)		$	31,358

		Gross Amounts of Recognized Liabilities				Gross Amounts Offset in the Consolidated Statement of Financial Condition				Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition
														Gross Amounts Not Offset In the Statement of Financial Condition
(in thousands)														Financial Instruments				Cash Collateral Pledged				Net Amount
Offsetting of Financial Liabilities:
Securities loaned		$	1,130,039			$	—			$	1,130,039			$	(1,108,461	)		$	(8,822	)		$	12,756
Securities sold under agreements to repurchase		281,861				—				281,861				(281,861		)		—				—
Trading liabilities, at fair value:
Currency forwards		2,720,749				(2,719,954		)		795				—				(792		)		3
Options		11,051				—				11,051				(11,051		)		—				—
Total		$	4,143,700			$	(2,719,954	)		$	1,423,746			$	(1,401,373	)		$	(9,614	)		$	12,759

Summary of gross obligations for repurchase agreement and securities borrowed transactions by remaining contractual maturity and class of collateral pledged

The following table presents gross obligations for securities sold under agreements to repurchase and for securities lending transactions by remaining contractual maturity and the class of collateral pledged:

		March 31, 2019
		Remaining Contractual Maturity
(in thousands)		Overnight and Continuous				Less than 30 days				30 - 60 days				61 - 90 Days				Total
Securities sold under agreements to repurchase:
Equity securities		$	—			$	90,000			$	40,000			$	160,000			$	290,000
U.S. and Non-U.S. government obligations		—				—				—				—				—
Total		—				90,000				40,000				160,000				290,000
Securities lending transactions:
Equity securities		819,903				—				—				—				819,903
Total		$	819,903			$	—			$	—			$	—			$	819,903

		December 31, 2018
		Remaining Contractual Maturity
(in thousands)		Overnight and Continuous				Less than 30 days				30 - 60 days				61 - 90 Days				Total
Securities sold under agreements to repurchase:
Equity securities		$	—			$	45,000			$	65,000			$	160,000			$	270,000
U.S. and Non-U.S. government obligations		11,861				—				—				—				11,861
Total		11,861				45,000				65,000				160,000				281,861
Securities loaned:
Equity securities		1,130,039				—				—				—				1,130,039
Total		$	1,130,039			$	—			$	—			$	—			$	1,130,039

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- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19279-110258

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
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Tabular disclosure of derivative and other financial assets and liabilities that are subject to offsetting, including master netting arrangements.

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Tabular disclosure of information by remaining contractual maturity and class of collateral pledges.

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