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Revenue from Contracts with Clients (Notes) | 6 Months Ended
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Mar. 31, 2019
Revenue from Contract with Clients [Abstract] |
Revenue from Contract with Customer [Text Block] | Note 2 – Revenue from Contracts with Clients Beginning on October 1, 2018, the Company accounts for revenue earned from contracts with clients for services such as the execution, clearing, brokering, and custody of futures and options on futures contracts, OTC derivatives, and securities, investment management, and underwriting services under Topic 606. As such, revenues for these services are recognized when the performance obligations related to the underlying transaction are completed. Revenues are recognized when control of the promised goods or services are transferred to clients, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Revenues are analyzed to determine whether the Company is the principal (i.e. reports revenue on a gross basis) or agent (i.e., reports revenues on a net basis) in the contract. Principal or agent designations depend primarily on the control an entity has over the good or service before control is transferred to a client. The indicators of which party exercises control include primary responsibility over performance obligations, inventory risk before the good or service is transferred, and discretion in establishing the price. The new revenue recognition model does not apply to revenues associated with dealing, or market-making, activities in financial instruments or contracts in the capacity of a principal, including derivative sales contracts which result in physical settlement and interest income. The Company’s revenues from contracts with clients subject to Topic 606 represent approximately 1.4% and 1.9% of the Company’s total revenues for the three months ended March 31, 2019 and 2018, respectively, and approximately 1.6% of the Company’s total revenues for the six months ended March 31, 2019 and 2018. The Company’ revenues from contracts with clients subject to Topic 606 represent approximately 38.4% and 48.0% of the Company’s operating revenues for the three months ended March 31, 2019 and 2018, respectively, and approximately 41.6% and 48.2% of the Company’s operating revenues for the six months ended March 31, 2019 and 2018, respectively. This includes all of the Company’s commission and clearing fees and consulting, management, and account fees revenues. Revenues within the scope of Topic 606 are presented within ‘Commission and clearing fees’ and ‘Consulting, management, and account fees’ on the condensed consolidated income statements. Revenues that are not within the scope of Topic 606 are presented within ‘Sales of physical commodities’, ‘Principal gains, net’, and ‘Interest income’ on the condensed consolidated income statements. The following table represents a disaggregation of the Company’s total revenues separated between revenues from contracts with clients and other sources of revenue for the three and six months ended March 31, 2019 and 2018 (in millions):
| Three Months Ended March 31, |  | Six Months Ended March 31,
| 2019 |  | 2018 |  | 2019 |  | 2018
Revenues from contracts with clients: |  |  |  |  |  |  |
Commission and clearing fees: |  |  |  |  |  |  |
Sales-based: |  |  |  |  |  |  |
Exchange-traded futures and options | $ | 31.2 |  |  | $ | 44.0 |  |  | $ | 70.3 |  |  | $ | 78.6 |
OTC derivative brokerage | 7.3 |  |  | 8.3 |  |  | 16.2 |  |  | 15.8 |
Equities and fixed income | 3.6 |  |  | 2.8 |  |  | 6.8 |  |  | 5.6 |
Mutual funds | 1.9 |  |  | 2.1 |  |  | 4.5 |  |  | 4.1 |
Insurance and annuity products | 1.5 |  |  | 1.5 |  |  | 3.0 |  |  | 3.0 |
Other | 0.5 |  |  | — |  |  | 0.7 |  |  | 0.6 |
Total sales-based commission | 46.0 |  |  | 58.7 |  |  | 101.5 |  |  | 107.7 |
Trailing: |  |  |  |  |  |  |
Mutual funds | 3.0 |  |  | 3.3 |  |  | 6.2 |  |  | 6.6 |
Insurance and annuity products | 3.4 |  |  | 3.7 |  |  | 7.1 |  |  | 7.3 |
Total trailing commission | 6.4 |  |  | 7.0 |  |  | 13.3 |  |  | 13.9 |
Clearing fees | 26.8 |  |  | 34.5 |  |  | 59.4 |  |  | 59.5 |
Trade conversion fees | 3.3 |  |  | 2.0 |  |  | 4.9 |  |  | 3.8 |
Other | 2.6 |  |  | 4.2 |  |  | 5.5 |  |  | 8.0 |
Total commission and clearing fees: | 85.1 |  |  | 106.4 |  |  | 184.6 |  |  | 192.9 |
Consulting, management, and account fees: |  |  |  |  |  |  |
Underwriting fees | 0.2 |  |  | 0.7 |  |  | 0.5 |  |  | 1.3 |
Asset management fees | 6.0 |  |  | 6.4 |  |  | 12.2 |  |  | 12.5 |
Advisory and consulting fees | 4.7 |  |  | 4.8 |  |  | 9.7 |  |  | 9.4 |
Sweep program fees | 4.1 |  |  | 2.7 |  |  | 7.9 |  |  | 4.9
Customer account fees | 2.5 |  |  | 2.9 |  |  | 5.2 |  |  | 5.7 |
Other | 1.6 |  |  | 0.9 |  |  | 2.7 |  |  | 1.2 |
Total consulting, management, and account fees | 19.1 |  |  | 18.4 |  |  | 38.2 |  |  | 35.0 |
Total revenues from contracts with clients | $ | 104.2 |  |  | $ | 124.8 |  |  | $ | 222.8 |  |  | $ | 227.9 |
Method of revenue recognition: |  |  |  |  |  |  |
Point-in-time | $ | 83.0 |  |  | $ | 103.9 |  |  | $ | 179.7 |  |  | $ | 187.2 |
Time elapsed | 21.2 |  |  | 20.9 |  |  | 43.1 |  |  | 40.7 |
Total revenues from contracts with clients | 104.2 |  |  | 124.8 |  |  | 222.8 |  |  | 227.9 |
Other sources of revenues |  |  |  |  |  |  |
Precious metals trading | 6,660.9 |  |  | 6,031.6 |  |  | 12,616.4 |  |  | 13,563.5 |
Agricultural and energy merchandising and origination | 268.6 |  |  | 224.2 |  |  | 608.9 |  |  | 406.7 |
Principal gains, net | 110.3 |  |  | 98.5 |  |  | 203.1 |  |  | 175.6 |
Interest income | 48.2 |  |  | 27.9 |  |  | 93.2 |  |  | 51.9 |
Total revenues | $ | 7,192.2 |  |  | $ | 6,507.0 |  |  | $ | 13,744.4 |  |  | $ | 14,425.6 |
Primary geographic region: |  |  |  |  |  |  |
United States | $ | 456.6 |  |  | $ | 404.1 |  |  | $ | 983.6 |  |  | $ | 728.0 |
Europe | 53.8 |  |  | 47.8 |  |  | 107.1 |  |  | 93.0 |
South America | 12.4 |  |  | 16.7 |  |  | 23.9 |  |  | 31.7 |
Middle East and Asia | 6,667.3 |  |  | 6,037.4 |  |  | 12,625.9 |  |  | 13,571.0 |
Other | 2.1 |  |  | 1.0 |  |  | 3.9 |  |  | 1.9 |
Total revenues | $ | 7,192.2 |  |  | $ | 6,507.0 |  |  | $ | 13,744.4 |  |  | $ | 14,425.6 |
The substantial majority of the Company’s performance obligations for revenues from contracts with clients are satisfied at a point in time and are typically collected from clients by debiting their accounts with the Company. Commission and clearing fees revenue is primarily related to the Commercial Hedging and Clearing and Execution Services reportable segments. Consulting, management, and accounts fees are primarily related to the Commercial Hedging, Clearing and Execution Services, and Securities reportable segments. Principal gains, net is primarily related to the Commercial Hedging, Global Payments, and Securities reportable segments. Interest income is primarily related to the Commercial Hedging, Securities, and Clearing and Execution Services reportable segments. Precious metals trading and agricultural and energy merchandising and origination revenues are primarily related to the Physical Commodities reportable segment. Commission and Clearing Fees Commission revenue represents sales and brokerage commissions generated by internal brokers, introducing broker-dealers, or registered investment advisors of introducing-broker dealers for their clients’ trading activity in futures, options on futures, OTC derivatives, fixed income securities, equity securities, mutual funds, and annuities. The Company views the selling, distribution, and marketing, or any combination thereof, of mutual funds and insurance and annuity products to clients on the Company’s registered investment advisor (“RIA”) platform as a single performance obligation to the product sponsors. The Company is the principal for commission revenue, as it is responsible for the execution of the clients’ purchases and sales, and maintains relationships with product sponsors for trailing commission. Introducing broker dealers and registered investment advisors assist the Company in performing its obligations. Accordingly, total commission revenues are reported on a gross basis. The Company primarily generates commission revenue on exchange-traded derivatives, OTC derivatives, and securities. Exchange-traded and OTC derivative commissions are recognized at a point in time on the trade date when the client, either directly or through the use of an internal broker or introducing broker, requests the clearance and execution of a trade. Securities commissions are either sale-based commission that are recognized at a point in time on the trade date or trailing commission that are recognized over time as earned. Sales-based securities commission is for a flat fee per security transaction or in certain instances are based on a percentage of an investment product’s current market value at the time of purchase. Trailing commission revenue is generally based on a percentage of the current market value of clients’ investment holdings in trail-eligible assets, and is recognized over the period during which services, such as on-going support, are performed. As trailing commission revenue is based on the market value of clients’ investment holdings in trail-eligible assets, this variable consideration is constrained until the market value of trail-eligible assets is determinable. Clearing fees generally represent transactional based fees charged by the various exchanges and clearing organizations for which the Company or one of its clearing brokers is a member for the privilege of executing and clearing trades through them. Clearing fees are generally passed through to the clients’ accounts and are reported gross as the Company maintains control over the clearing and execution services provided, maintains relationships with the exchanges or clearing brokers, and has ultimate discretion in whether the fees are passed through to the clients and the rates at which they are passed through. As clearing fees are transactional based revenues they are recognized at a point in time on the trade date along with the related commission revenue when the client requests the clearance and execution of a trade. Trade Conversion Revenue Trade conversion revenue includes fees earned from converting foreign ordinary equities into an American Depository Receipt (“ADR”) or Global Depository Receipt (“GDR”) and fees earned from converting an ADR or GDR into foreign ordinary equities on behalf of clients. Trade conversion revenue is reported on a trade date basis. Underwriting Fees Revenues from investment banking consists of revenues earned from underwriting fixed income securities, primarily municipal and asset-backed securities, and are recognized in revenues upon completion of the underlying transaction, which is generally the trade date, based upon the terms of the assignment as the performance obligation is to successfully broker a specific transaction. Asset Management Fees The Company earns asset management fees on Company sponsored and managed mutual funds and on the advisory accounts of independent registered investment advisors on the Company’s platform. The Company provides ongoing investment advice and acts as a custodian, providing brokerage and execution services on transactions, and performs administrative services for these accounts. This series of performance obligations transfers control of the services to the client over time as the services are performed. This revenue is recognized ratably over time to match the continued delivery of the performance obligations to the client over the life of the contract. The asset management revenue generated is based on a percentage of the market value of the eligible assets in the clients’ accounts. As such, the consideration for this revenue is variable and this variable consideration is constrained until the market value of eligible assets in the clients’ accounts is determinable. Advisory and Consulting Fees Advisory and consulting fees are primarily related to risk management consulting fees which are billed and recognized as revenue on a monthly basis when risk management services are provided. Such agreements are generally for one year periods, but are generally cancelable by either party upon providing thirty days’ written notice to the other party and the amounts are not variable based on client trading activities. This revenue is generally recognized ratably over time to match the continued delivery of the performance obligation to the client over the life of the contract. Sweep Program Fees The Company earns fees generated in lieu of interest income from a multi-bank sweep program with unaffiliated banks and money market funds. Pursuant to contractual arrangements with clients and their introducing-brokers, available cash balances in client accounts are swept into either Federal Deposit Insurance Corporation (“FDIC”) insured cash accounts at unaffiliated banks or unaffiliated money market funds for which the Company earns a portion of the interest income generated by the client balances for administration and recordkeeping. The fees generated by the Company’s multi-bank sweep program are reported net of the balances remitted to the introducing-brokers and the clients of introducing-brokers. These fees are paid and recognized over time to match the continued delivery of the administration and recordkeeping performance obligations to the life of the contract. The fees earned under this program are generally based upon the type of sweep account, prevailing interest rates, and the amount of client balances invested. Client Accounts Fees Client accounts fees represent fees earned for custodial, recordkeeping, and administrative functions performed for the securities clearing accounts of clients. These include statement delivery fees, account transfer fees, safekeeping fees, errors and omission insurance fees, platform fees, and other fees. Client account fees that are transactional based, such as account transfer fees, are recognized at a point in time when the related performance obligation is satisfied. Client account fees that are related to ongoing services, such as statement delivery fees and errors and omission insurance fees, are recognized over time. Client account fees that relate to ongoing services are typically billed to clients’ accounts on a monthly or quarterly basis. Physical Precious Metals Trading The Company principally generates revenue from trading physical precious metals on an OTC basis. Revenues from the sale of physical precious metals are recorded on a trade date basis and generally settle on an unallocated basis. Substantially all of the Company’s sales of precious metals are conducted using sales contracts that meet the definition of derivative instruments in accordance with ASC 815 - Derivatives and Hedging (“Topic 815”). The contracts underlying the Company’s commitment to deliver precious metals are referred to as fixed price forward commodity contracts because the price of the commodity is fixed at the time the order is placed. Although the contracts typically are executed on a spot basis and settle on unallocated account, the client has the option to request delivery of the precious metals, the option to net settle out of the position by executing an offsetting trade, or the option to roll the transaction to a subsequent maturity date. Thus, the sales contracts contain embedded option derivatives that would be subject to the guidance in Topic 815. As the contracts are subject to the guidance in Topic 815, the fixed price derivative sales contracts are outside the scope of Topic 606. The Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606. Physical Agricultural Commodity Merchandising and Origination The Company principally generates revenue from merchandising and originating physical agricultural and energy commodities from forward firm sales commitments accounted in accordance with Topic 815. The fixed and provisionally-priced derivative sales contracts that result in physical delivery are outside the scope of Topic 606. The Company recognizes revenue when control of the inventory is transferred within the meaning of Topic 606. Principal Gains, Net Principal gains, net includes revenues on financial transactions or contracts for which the Company acts as principal that is reported on a net basis and is primarily outside the scope of ASC 606. Principal gains, net includes margins generated from OTC derivative trades, equities, fixed income, and foreign exchange executed with clients and other counterparties and are recognized on a trade-date basis. Principal gains, net, also includes realized and unrealized gains and losses derived principally from market making activities in OTC derivatives, equities, fixed income, and foreign exchange. Net dealer inventory and investment gains are recognized on a trade-date basis and include realized gains or losses and changes in unrealized gains or losses on investments at fair value. Principal gains, net also includes dividend income on long equity positions and dividend expense on short equity positions, which are recognized on the ex-dividend date. Interest Income Interest income is generated from client funds deposited with the Company to satisfy margin requirements which is held by third-party banks or on deposit with or pledged to exchange-clearing organizations or other FCMs. Interest income is also generated from the investment of client funds in allowable securities, primarily U.S. Treasury obligations. Interest income is also generated from trading fixed income securities that the Company holds in its market-making businesses. Interest income also includes interest generated from collateralized transactions, including securities borrowed and securities purchased under agreements to resell, and from extending margin loans to clients. Interest income is recognized on an accrual basis and is not within the scope of Topic 606. Remaining Performance Obligations Remaining performance obligations are services that the firm has committed to perform in the future in connection with its contracts with clients. The Company’s remaining performance obligations are generally related to its risk management consulting and asset management contracts with clients. Revenues associated with remaining performance obligations related to these contracts with clients are not material to the overall consolidated results of the Company. For the Company’s asset management activities, where fees are calculated based on a percentage of the market value of eligible assets in client’s accounts, future revenue associated with remaining performance obligations cannot be determined as such fees are subject to fluctuations in the market value of eligible assets in clients’ accounts. Practical Expedients The Company has applied Topic 606’s practical expedient that permits for the non-disclosure of the value of performance obligations for (i) contracts with an original expected length or one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which is has the right to invoice for services performed. The Company has also applied Topic 606’s practical expedient that allows for no adjustment to consideration due to a significant financing component if the expectation at contract inception is such that the period between payment by the client and the transfer of the promised goods or services to the client will be one year or less.

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- Definition Revenue from Contract with Clients [Abstract] + References No definition available. + Details
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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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