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Derivatives | 9 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | Derivatives In the normal course of operations, the Company enters into derivative contracts to facilitate client transactions, hedge principal positions and facilitate hedging activities of affiliated companies. These derivative contracts primarily consist of FX swaps, FX/commodities options, futures, forwards and interest rate swaps. The fair value of derivative contracts, presented in accordance with the Company’s netting policy, is set forth below (in thousands):
|  | September 30, 2024 |  | December 31, 2023
Derivative contract |  | Assets |  | Liabilities |  | Notional Amounts 1 |  | Assets |  | Liabilities |  | Notional Amounts 1
FX swaps |  | $ | 3,753 |  |  | $ | 5,938 |  |  | $ | 674,116 |  |  | $ | 2,674 |  |  | $ | 5,119 |  |  | $ | 545,669 |
Forwards |  | 1,264 |  |  | 703 |  |  | 375,108 |  |  | 805 |  |  | 609 |  |  | 310,880 |
Interest rate swaps |  | 87 |  |  | — |  |  | 66,810,254 |  |  | 128 |  |  | — |  |  | 34,272,592 |
Futures |  | — |  |  | 49 |  |  | 7,325,976 |  |  | — |  |  | 28 |  |  | 6,703,624 |
Total |  | $ | 5,104 |  |  | $ | 6,690 |  |  | $ | 75,185,454 |  |  | $ | 3,607 |  |  | $ | 5,756 |  |  | $ | 41,832,765 |
1 Notional amounts represent the sum of gross long and short derivative contracts, an indication of the volume of the Company’s derivative activity, and do not represent anticipated losses. Certain of the Company’s FX swaps are with Cantor. See Note 13—“Related Party Transactions” for additional information related to these transactions. The replacement costs of contracts in a gain position were $5.1 million and $3.6 million as of September 30, 2024 and December 31, 2023, respectively. The following tables present information about the offsetting of derivative instruments (in thousands):
| September 30, 2024
| Gross Amounts |  | Gross Amounts Offset |  | Net Amounts Presented in the Statements of Financial Condition 1
Assets |  |  |  |  |
FX swaps | $ | 4,477 |  |  | $ | (724) |  |  | $ | 3,753 |
Forwards | 1,341 |  |  | (77) |  |  | 1,264 |
Interest rate swaps | 6,127 |  |  | (6,040) |  |  | 87 |
Futures | 55,742 |  |  | (55,742) |  |  | — |
Total derivative assets | $ | 67,687 |  |  | $ | (62,583) |  |  | $ | 5,104 |
Liabilities |  |  |  |  |
FX swaps | $ | 6,662 |  |  | $ | (724) |  |  | $ | 5,938 |
Forwards | 780 |  |  | (77) |  |  | 703 |
Futures | 55,791 |  |  | (55,742) |  |  | 49 |
Interest rate swaps | 6,040 |  |  | $ | (6,040) |  |  | — |
Total derivative liabilities | $ | 69,273 |  |  | $ | (62,583) |  |  | $ | 6,690 |
| December 31, 2023
| Gross Amounts |  | Gross Amounts Offset |  | Net Amounts Presented in the Statements of Financial Condition 1
Assets |  |  |  |  |
FX swaps | $ | 3,467 |  |  | $ | (793) |  |  | $ | 2,674 |
Forwards | 855 |  |  | (50) |  |  | 805 |
Interest rate swaps | 12,310 |  |  | (12,182) |  |  | 128 |
Futures | 62,693 |  |  | (62,693) |  |  | — |
Total derivative assets | $ | 79,325 |  |  | $ | (75,718) |  |  | $ | 3,607 |
Liabilities |  |  |  |  |
FX swaps | $ | 5,912 |  |  | $ | (793) |  |  | $ | 5,119 |
Forwards | 659 |  |  | (50) |  |  | 609 |
Futures | 62,721 |  |  | (62,693) |  |  | 28 |
Interest rate swaps | 12,182 |  |  | (12,182) |  |  | — |
Total derivative liabilities | $ | 81,474 |  |  | $ | (75,718) |  |  | $ | 5,756 |
1 There were no additional balances in gross amounts not offset as of either September 30, 2024 or December 31, 2023. The change in fair value of derivative contracts is reported as part of “Principal transactions” in the Company’s unaudited Condensed Consolidated Statements of Operations. The table below summarizes gains and (losses) on derivative contracts (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Derivative contract |  | 2024 |  | 2023 |  | 2024 |  | 2023
Futures |  | $ | 4,603 |  |  | $ | 3,379 |  |  | $ | 11,242 |  |  | $ | 10,156 |
Interest rate swaps |  | 1,830 |  |  | 330 |  |  | 5,758 |  |  | 547 |
FX swaps |  | 802 |  |  | 1,046 |  |  | 1,858 |  |  | 1,942 |
FX/commodities options |  | 161 |  |  | 61 |  |  | 265 |  |  | 143 |
Gains |  | $ | 7,396 |  |  | $ | 4,816 |  |  | $ | 19,123 |  |  | $ | 12,788 |

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