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Financial Instruments and Other Inventory Positions | 12 Months Ended
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Dec. 31, 2025
Financial Instruments Owned and Sold, Not yet Purchased [Abstract] |
Financial Instruments and Other Inventory Positions Owned and Financial Instruments and Other Inventory Positions Sold, but Not Yet Purchased | FINANCIAL INSTRUMENTS AND OTHER INVENTORY POSITIONS
| December 31, |  | December 31,
(Amounts in thousands) | 2025 |  | 2024
Financial instruments and other inventory positions owned |  |  |
Corporate securities: |  |  |
Convertible securities | $ | 140,306 |  |  | $ | 136,176 |
Equity securities | — |  |  | 2 |
Fixed income securities | 2,831 |  |  | 1,583 |
Municipal securities: |  |  |
Taxable securities | 33,021 |  |  | 21,171 |
Tax-exempt securities | 125,419 |  |  | 126,945 |
Short-term securities | 19,531 |  |  | 1,075 |
Asset-backed securities | 92,472 |  |  | 50,188 |
U.S. government agency securities | 82,666 |  |  | 78,256 |
U.S. government securities | 201 |  |  | 4,633 |
Derivative contracts | 5,823 |  |  | 5,699 |
Total financial instruments and other inventory positions owned | $ | 502,270 |  |  | $ | 425,728 |
Financial instruments and other inventory positions sold, but not yet purchased |  |  |
Corporate securities: |  |  |
Equity securities | $ | — |  |  | $ | 19,740 |
Fixed income securities | 3,300 |  |  | 614 |
U.S. government securities | 43,403 |  |  | 54,249 |
Derivative contracts | 1,811 |  |  | 2,379 |
Total financial instruments and other inventory positions sold, but not yet purchased | $ | 48,514 |  |  | $ | 76,982 |
At December 31, 2025 and 2024, financial instruments and other inventory positions owned in the amount of $67.1 million and $74.6 million, respectively, had been pledged as collateral for short-term financing arrangements. Financial instruments and other inventory positions sold, but not yet purchased represent obligations of the Company to deliver the specified security at the contracted price, thereby creating a liability to purchase the security in the market at prevailing prices. The Company is obligated to acquire the securities sold short at prevailing market prices, which may exceed the amount reflected on the consolidated statements of financial condition. The Company economically hedges changes in the market value of its financial instruments and other inventory positions owned using inventory positions sold, but not yet purchased, interest rate derivatives, U.S. treasury bond futures and options, and equity option contracts. Derivative Contract Financial Instruments Customer Matched-Book Derivatives The Company enters into interest rate derivative contracts in a principal capacity as a dealer to satisfy the financial needs of its customers. The Company simultaneously enters into an interest rate derivative contract with a third party for the same notional amount to hedge the interest rate and credit risk of the initial client interest rate derivative contract. In certain instances, the Company has only hedged interest rate risk with a third party, and retains uncollateralized credit risk as described below. These instruments use rates based upon the Secured Overnight Financing Rate ("SOFR") index, the MMD index or the Securities Industry and Financial Markets Association ("SIFMA") index. Trading Securities Derivatives The Company enters into interest rate derivative contracts and uses U.S. treasury bond futures and options to hedge interest rate and market value risks primarily associated with its fixed income securities. These instruments use rates based upon the MMD index. The Company also enters into equity option contracts to hedge market value risk associated with its convertible securities. The Company may enter into credit default swap contracts to hedge credit spread risk associated with the debt instruments held in our trading inventory. These instruments use rates based upon the Credit Default Swap Index ("CDX"). Derivatives are reported on a net basis by counterparty (i.e., the net payable or receivable for derivative assets and liabilities for a given counterparty) when a legal right of offset exists and on a net basis by cross product when applicable provisions are stated in master netting agreements. Cash collateral received or paid is netted on a counterparty basis, provided a legal right of offset exists. The total absolute notional contract amount, representing the absolute value of the sum of gross long and short derivative contracts, provides an indication of the volume of the Company's derivative activity and does not represent gains and losses. The following table presents the gross fair market value and the total absolute notional contract amount of the Company's outstanding derivative instruments, prior to counterparty netting, by asset or liability position:
|  | December 31, 2025 |  | December 31, 2024
(Amounts in thousands) |  | Derivative |  | Derivative |  | Notional |  | Derivative |  | Derivative |  | Notional
Derivative Category |  | Assets (1) |  | Liabilities (2) |  | Amount |  | Assets (1) |  | Liabilities (2) |  | Amount
Interest rate: |  |  |  |  |  |  |  |  |  |  |  |
Customer matched-book |  | $ | 7,033 |  |  | $ | 4,878 |  |  | $ | 355,129 |  |  | $ | 10,906 |  |  | $ | 8,629 |  |  | $ | 393,860 |
Trading securities |  | 1,063 |  |  | 5,695 |  |  | 236,400 |  |  | 1,098 |  |  | 442 |  |  | 171,333 |
|  | $ | 8,096 |  |  | $ | 10,573 |  |  | $ | 591,529 |  |  | $ | 12,004 |  |  | $ | 9,071 |  |  | $ | 565,193 |
(1)Derivative assets are included within financial instruments and other inventory positions owned on the consolidated statements of financial condition. (2)Derivative liabilities are included within financial instruments and other inventory positions sold, but not yet purchased on the consolidated statements of financial condition. The Company's derivative contracts do not qualify for hedge accounting; therefore, unrealized gains and losses are recorded on the consolidated statements of operations. The gains and losses on the related economically hedged inventory positions are not disclosed below as they are not in qualifying hedging relationships. The following table presents the Company's unrealized gains/(losses) on derivative instruments:
(Amounts in thousands) |  |  |  |  |  | Year Ended December 31,
Derivative Category |  | Operations Category |  |  |  |  |  | 2025 |  | 2024 |  | 2023
Interest rate derivative contract |  | Investment banking |  |  |  |  |  | $ | (108) |  |  | $ | (3,361) |  |  | $ | (426) |
Interest rate derivative contract |  | Institutional brokerage |  |  |  |  |  | (5,132) |  |  | 2,963 |  |  | (5,790) |
|  |  |  |  |  |  |  | $ | (5,240) |  |  | $ | (398) |  |  | $ | (6,216) |
Credit risk associated with the Company's derivatives is the risk that a derivative counterparty will not perform in accordance with the terms of the applicable derivative contract. Credit exposure associated with the Company's derivatives is driven by uncollateralized market movements in the fair value of the contracts with counterparties and is monitored regularly by the Company's financial risk committee. The Company considers counterparty credit risk in determining derivative contract fair value. The Company's derivative contracts are generally collateralized by its counterparties, who are major financial institutions. As of December 31, 2025, the Company had $4.7 million of uncollateralized credit exposure with three counterparties (notional contract amount of $72.4 million), including $4.1 million of uncollateralized credit exposure with one counterparty.

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- Definition Financial Instruments Owned and Sold, Not yet Purchased + References No definition available. + Details
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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/825/tableOfContent + Details
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