Receivables from/Payables to Broker-Dealers and Clearing Organizations

6 Months Ended

Jun. 30, 2024

Due to and from Broker-Dealers and Clearing Organizations [Abstract]

Receivables from/Payables to Broker-Dealers and Clearing Organizations

The following is a summary of receivables from and payables to brokers-dealers and clearing organizations at June 30, 2024 and December 31, 2023:



(in thousands)	June 30, 2024		December 31, 2023
Assets
Due from prime brokers	$	308,037	$	208,639
Deposits with clearing organizations	197,684		182,008
Net equity with futures commission merchants	149,582		166,808
Unsettled trades with clearing organizations	1,689		1,096
Securities failed to deliver	210,200		148,822
Commissions and fees	35,675		30,351
Total receivables from broker-dealers and clearing organizations	$	902,867	$	737,724

Liabilities
Due to prime brokers	$	596,933	$	780,310
Net equity with futures commission merchants (1)	(28,531)		(36,059)
Unsettled trades with clearing organizations	151,047		313,875
Securities failed to receive	118,544		104,702
Commissions and fees	5,119		4,884
Total payables to broker-dealers and clearing organizations	$	843,112	$	1,167,712

(1) The Company presents its balances, including outstanding principal balances on all broker credit facilities, on a net-by-counterparty basis within receivables from and payables to broker-dealers and clearing organizations when the criteria for offsetting are met.

Included as a deduction from “Due from prime brokers” and “Net equity with futures commission merchants” is the outstanding principal balance on all of the Company’s prime brokerage credit facilities (described in Note 9 “Borrowings”) of approximately $119.3 million and $175.3 million as of June 30, 2024 and December 31, 2023, respectively. The loan proceeds from the credit facilities are available only to meet the initial margin requirements associated with the Company’s ordinary course futures and other trading positions, which are held in the Company’s trading accounts with an affiliate of the respective financial institutions. The credit facilities are fully collateralized by the Company’s trading accounts and deposit accounts with these financial institutions. “Securities failed to deliver” and “Securities failed to receive” include amounts with a clearing organization and other broker-dealers.