Securities and Commodity Financing Transactions

The Company’s outstanding notes receivable in connection with repurchase agreements for agricultural and energy commodities, whereby the customers sell to the Company certain commodity inventory and agree to repurchase the commodity inventory at a future date at a fixed price were $1.8 million and $0.8 million as of December 31, 2017 and September 30 2017, respectively.

The Company enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned transactions to, among other things, finance financial instruments, acquire securities to cover short positions, acquire securities for settlement, and to accommodate counterparties’ needs. These agreements are recorded as collateralized financings at their contractual amounts plus accrued interest. The related interest is recorded in the consolidated income statements as interest income or interest expense, as applicable. In connection with these agreements and transactions, it is the policy of the Company to receive or pledge cash or securities to adequately collateralize such agreements and transactions in accordance with general industry guidelines and practices. The value of the collateral is valued daily and the Company may require counterparties to deposit additional collateral or return collateral pledged, when appropriate. The carrying amounts of these agreements and transactions approximate fair value due to their short-term nature and the level of collateralization.

The Company pledges financial instruments owned to collateralize repurchase agreements. At December 31, 2017, financial instruments owned, at fair value of $3.4 million were pledged as collateral under repurchase agreements. The counterparty has the right to repledge the collateral in connection with these transactions. These financial instruments owned have been pledged as collateral and have been parenthetically disclosed on the consolidated balance sheet.

The Company also has repledged securities borrowed and securities held on behalf of correspondent brokers to collateralize securities loaned agreements with a fair value of $101.9 million as of December 31, 2017.

In addition, as of December 31, 2017, the Company pledged financial instruments owned, at fair value of $1,687.3 million as collateral for tri-party repurchase agreements. For these securities, the counterparties do not have the right to sell or repledge the collateral.

At December 31, 2017, the Company has accepted collateral that it is permitted by contract to sell or repledge. This collateral consists primarily of securities received in reverse repurchase agreements, securities borrowed agreements, and margin securities held on behalf of correspondent brokers. The fair value of such collateral at December 31, 2017, was $819.0 million of which $472.8 million was used to cover securities sold short which are recorded in financial instruments sold, not yet purchased on the consolidated balance sheet. In the normal course of business, this collateral is used by the Company to cover financial instruments sold, not yet purchased, to obtain financing in the form of repurchase agreements, and to meet counterparties’ needs under lending arrangements. At December 31, 2017, substantially all of the above collateral had been delivered against financial instruments sold, not yet purchased or repledged by the Company to obtain financing.

The following tables provide the contractual maturities of gross obligations under repurchase and securities lending agreements as of December 31, 2017 and September 30, 2017 (in millions):



	December 31, 2017
	Overnight and Open	Less than 30 Days	30-90 Days	Over 90 Days	Total
Securities sold under agreements to repurchase	$1,121.4	$239.0	$290.0	—	$1,650.4
Securities loaned	108.8	—	—	—	108.8
Gross amount of secured financing	$1,230.2	$239.0	$290.0	$0.0	$1,759.2



	September 30, 2017
	Overnight and Open	Less than 30 Days	30-90 Days	Over 90 Days	Total
Securities sold under agreements to repurchase	$640.2	$432.9	$320.0	—	$1,393.1
Securities loaned	111.1	—	—	—	111.1
Gross amount of secured financing	$751.3	$432.9	$320.0	—	$1,504.2

The following table provides the underlying collateral types of the gross obligations under repurchase and securities lending agreements as of December 31, 2017 and September 30, 2017 (in millions):



Securities sold under agreements to repurchase:	December 31, 2017		September 30, 2017
U.S. Treasury obligations	$	3.2	$	7.0
U.S. government agency obligations	358.2		332.6
Asset-backed obligations	75.0		36.4
Agency mortgage-backed obligations	1,214.0		1,017.1
Total securities sold under agreements to repurchase	$	1,650.4	$	1,393.1

Securities loaned:
Common stock	108.8		111.1
Total securities loaned	108.8		111.1
Gross amount of secured financing	$	1,759.2	$	1,504.2