DERIVATIVES

6 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The tables below present the fair value of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair value of the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 12) on the accompanying condensed consolidated statements of financial condition as of June 30, 2023 and December 31, 2022. Notional amounts provide an indication of the volume of the Company's derivative activity.

Derivative assets and liabilities, as well as the related cash collateral from the same counterparty, have been netted on the condensed consolidated statements of financial condition where the Company has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the condensed consolidated statements of financial condition, and those derivative assets and liabilities are shown separately in the table below.

In addition to the cash collateral received and transferred that is presented on a net basis with derivative assets and liabilities, the Company receives and transfers additional securities and cash collateral. These amounts mitigate counterparty credit risk associated with the Company’s derivative instruments, but are not eligible for net presentation on the condensed consolidated statements of financial condition.


	June 30, 2023
	Derivative Assets				Derivative Liabilities
	Fair Value		Notional		Fair Value		Notional
Forward foreign currency exchange rate contracts	$	834	$	132,513	$	4,866	$	277,982
Total return swaps and other	1,645		48,814		5,183		96,745

LFI and other similar deferred compensation arrangements	-		-		372,910		379,511
Total gross derivatives	2,479		$	181,327	382,959		$	754,238
Counterparty and cash collateral netting:
Forward foreign currency exchange rate contracts	(114)				(115)
Total return swaps and other	(1,650)				(4,544)
Net derivatives in "other assets" and "other liabilities"	715				378,300
Amounts not netted (a):
Cash collateral	(72)				-
Securities collateral	-				(583)
	$	643			$	377,717


	December 31, 2022
	Derivative Assets				Derivative Liabilities
	Fair Value		Notional		Fair Value		Notional
Forward foreign currency exchange rate contracts	$	1,356	$	170,103	$	921	$	128,098
Total return swaps and other	13,427		155,026		72		1,398
LGAC Warrants	-		-		115		11,500
LFI and other similar deferred compensation arrangements	-		-		326,282		338,126
Total gross derivatives	14,783		$	325,129	327,390		$	479,122
Counterparty and cash collateral netting:
Forward foreign currency exchange rate contracts	(157)				(158)
Total return swaps and other	(72)				(72)
Net derivatives in "other assets" and "other liabilities"	14,554				327,160
Amounts not netted (a):
Cash collateral	-				-
Securities collateral	-				-
	$	14,554			$	327,160

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(a)Amounts are subject to master netting arrangements but do not meet the criteria for netting on the condensed consolidated statements of financial condition under U.S. GAAP. For some counterparties, the collateral amounts of securities and cash collateral pledged may exceed the derivative assets and derivative liabilities balances. Where this is the case, the total amount reported is limited to the net derivative assets and net derivative liabilities balances with that counterparty.

Net gains (losses) with respect to derivative instruments (included in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month and six month periods ended June 30, 2023 and 2022, were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Forward foreign currency exchange rate contracts	$	(794)	$	3,704	$	(700)	$	5,610
LFI and other similar deferred compensation arrangements	(9,675)		35,098		(26,128)		49,421
LGAC Warrants	-		3,220		115		7,130
Total return swaps and other	(5,020)		19,311		(11,430)		25,499
Total	$	(15,489)	$	61,333	$	(38,143)	$	87,660

See Note 1 for additional information on LGAC Warrants.