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Current Expected Credit Losses (CECL) | 9 Months Ended
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Sep. 30, 2024
Credit Loss [Abstract] |
Current Expected Credit Losses (CECL) | Current Expected Credit Losses (CECL) The allowance for credit losses reflects management’s current estimate of potential credit losses related to the receivable balances included in the Company’s unaudited Condensed Consolidated Statements of Financial Condition. See Note 3—“Summary of Significant Accounting Policies” for further discussion of the CECL reserve methodology. As required, any subsequent changes to the allowance for credit losses are included in “Other expenses” in the Company’s unaudited Condensed Consolidated Statements of Operations. During the three and nine months ended September 30, 2024 and 2023, the Company recorded changes in the allowance for credit losses as follows (in millions):
| Accrued commissions and other receivables, net |  | Loans, forgivable loans and other receivables from employees and partners, net |  | Receivables from broker-dealers, clearing organizations, customers and related broker-dealers |  | Total
Beginning balance, July 1, 2024 | $ | 6.0 |  |  | $ | — |  |  | $ | 21.7 |  |  | $ | 27.7 |
Current-period provision for expected credit losses | 0.1 |  |  | — |  |  | (0.2) |  |  | (0.1) |
Ending balance, September 30, 2024 | $ | 6.1 |  |  | $ | — |  |  | $ | 21.5 |  |  | $ | 27.6 |
| Accrued commissions and other receivables, net |  | Loans, forgivable loans and other receivables from employees and partners, net |  | Receivables from broker-dealers, clearing organizations, customers and related broker-dealers |  | Total
Beginning balance, January 1, 2024 | $ | 5.0 |  |  | $ | 2.3 |  |  | $ | 18.9 |  |  | $ | 26.2 |
Current-period provision for expected credit losses | 1.1 |  |  | — |  |  | 2.6 |  |  | 3.7 |
Release of allowance for expected credit losses | $ | — |  |  | $ | (2.3) |  |  | $ | — |  |  | $ | (2.3) |
Ending balance, September 30, 2024 | $ | 6.1 |  |  | $ | — |  |  | $ | 21.5 |  |  | $ | 27.6 |
| Accrued commissions and other receivables, net |  | Loans, forgivable loans and other receivables from employees and partners, net |  | Receivables from broker-dealers, clearing organizations, customers and related broker-dealers |  | Total
Beginning balance, July 1, 2023 | $ | 5.1 |  |  | $ | 2.4 |  |  | $ | 11.0 |  |  | $ | 18.5 |
Current-period provision for expected credit losses | (0.2) |  |  | (0.2) |  |  | 2.0 |  |  | 1.6 |
Ending balance, September 30, 2023 | $ | 4.9 |  |  | $ | 2.2 |  |  | $ | 13.0 |  |  | $ | 20.1 |
| Accrued commissions and other receivables, net |  | Loans, forgivable loans and other receivables from employees and partners, net |  | Receivables from broker-dealers, clearing organizations, customers and related broker-dealers |  | Total
Beginning balance, January 1, 2023 | $ | 5.4 |  |  | $ | 2.5 |  |  | $ | 7.0 |  |  | $ | 14.9 |
Current-period provision for expected credit losses | $ | (0.5) |  |  | $ | (0.3) |  |  | $ | 6.0 |  |  | $ | 5.2 |
Ending balance, September 30, 2023 | $ | 4.9 |  |  | $ | 2.2 |  |  | $ | 13.0 |  |  | $ | 20.1 |
For the three and nine months ended September 30, 2024, there was an increase of $0.1 million and $1.1 million, respectively, in the allowance for credit losses against “Accrued commissions and other receivables, net” due to the updated macroeconomic assumptions, bringing the allowance for credit losses recorded pertaining to “Accrued commissions and other receivables, net” to $6.1 million as of September 30, 2024. For the three and nine months ended September 30, 2023, there was a decrease of $0.2 million and $0.5 million, respectively, in the allowance for credit losses against “Accrued commissions and other receivables, net.” For the three months ended September 30, 2024, there was no change in the allowance for credit losses against “Loans, forgivable loans and other receivables from employees and partners, net.” For the nine months ended September 30, 2024, there was a decrease of $2.3 million in the allowance for credit losses pertaining to “Loans, forgivable loans and other receivables from employees and partners, net” as a result of the release of allowance for expected credit losses. For the three and nine months ended September 30, 2023, there was a decrease of $0.2 million and $0.3 million in the allowance for credit losses against “Loans, forgivable loans and other receivables from employees and partners, net.” For the three and nine months ended September 30, 2024, there was a decrease of $0.2 million and an increase of $2.6 million, respectively, in the allowance for credit losses against “Receivables from broker-dealers, clearing organizations, customers and related broker-dealers” which reflected the downward credit rating migration of certain unsettled trades related to Russia’s Invasion of Ukraine, bringing the allowance for credit losses recorded pertaining to “Receivables from broker-dealers, clearing organizations, customers and related broker-dealers” to $21.5 million as of September 30, 2024. For the three and nine months ended September 30, 2023, there was an increase of $2.0 million and $6.0 million, respectively, in the CECL reserve recorded pertaining to “Receivables from broker-dealers, clearing organizations, customers and related broker-dealers” which reflected the downward credit rating migration of certain unsettled trades related to Russia’s Invasion of Ukraine.

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