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Revenue from Contracts with Customers
12 Months Ended
Dec. 31, 2019
Revenue From Contract With Customer [Abstract]  
Revenue from Contracts with Customers

24.

Revenue from Contracts with Customers

The following table presents the Company’s total revenues separated between revenues from contracts with customers and other sources of revenues (in thousands):

 

 

 

Year Ended

December 31,

2019

 

 

Year Ended

December 31,

2018

 

Revenue from contracts with customers:

 

 

 

 

 

 

 

 

Commissions

 

$

1,645,818

 

 

$

1,511,522

 

Data, software, and post-trade

 

 

73,166

 

 

 

65,185

 

Fees from related parties

 

 

29,442

 

 

 

24,076

 

Other revenues

 

 

12,806

 

 

 

3,837

 

Total revenue from contracts with customers

 

 

1,761,232

 

 

 

1,604,620

 

Other sources of revenue:

 

 

 

 

 

 

 

 

Principal transactions

 

 

321,923

 

 

 

313,053

 

Interest income

 

 

18,319

 

 

 

14,404

 

Other revenues

 

 

2,757

 

 

 

5,733

 

Total revenues

 

$

2,104,231

 

 

$

1,937,810

 

 

As discussed in Note 1—“Organization and Basis of Presentation”, the Company adopted the new revenue recognition standard as of January 1, 2018. There was no significant impact to the Company’s consolidated financial statements for the periods presented as a result of applying the new revenue recognition standard.

 

Refer to Note 3—“Summary of Significant Accounting Policies” for detailed information on the recognition of the Company’s revenues from contracts with customers.

Disaggregation of Revenue

Refer to Note 23—“Segment, Geographic and Product Information” for a further discussion on the allocation of revenues to geographic regions.

Contract Balances

The timing of our revenue recognition may differ from the timing of payment by our customers. The Company records a receivable when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied.

The Company had receivables related to revenues from contracts with customers of $778.4 million and $516.1 million at December 31, 2019 and December 31, 2018 respectively. The Company had no impairments related to these receivables during the years ended December 31, 2019 and 2018.

The Company’s deferred revenue primarily relates to customers paying in advance or billed in advance where the performance obligation has not yet been satisfied. Deferred revenue at December 31, 2019 and December 31, 2018 was $12.9 million and $12.8 million, respectively. During the year ended December 31, 2019, the Company recognized revenue of $9.1 million that was recorded as deferred revenue at the beginning of the period.

Contract Costs

The Company capitalizes costs to fulfill contracts associated with different lines of its business where the revenue is recognized at a point in time and the costs are determined to be recoverable. Capitalized costs to fulfill a contract are recognized at the point in time that the related revenue is recognized. At December 31, 2019, there were $1.4 million of capitalized costs recognized to fulfill a contract. At December 31, 2018, there were no capitalized costs recorded to fulfill a contract.