Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2013

Securities Owned and Securities Sold, But Not Yet Purchased at Fair Value

Securities Owned and Securities Sold, But Not Yet Purchased at Fair Value


	June 30, 2013				December 31, 2012
(Expressed in thousands)	Owned		Sold		Owned		Sold
U.S. Government, agency & sovereign obligations	$	586,095	$	55,026	$	525,255	$	131,930
Corporate debt and other obligations		11,979		3,187		14,428		1,858
Mortgage and other asset-backed securities		3,246		5		2,920		18
Municipal obligations		93,155		795		59,010		467
Convertible bonds		60,851		8,230		49,130		8,868
Corporate equities		45,132		43,757		43,708		29,884
Other		68,432		76		65,291		425

Total	$	868,890	$	111,076	$	759,742	$	173,450

Quantitative Information about Level 3 Fair Value Measurements

Additional information regarding the valuation technique and inputs used is as follows:

(Expressed in thousands)

Quantitative Information about Level 3 Fair Value Measurements at June 30, 2013

Product

Principal

Valuation
Adjustment

Fair Value

Valuation
Technique

Unobservable Input

Range

Auction Rate Securities⁽¹⁾

117,249

7,619

109,630

Discounted Cash Flow

Discount Rate

1.12% to 3.14

Duration

4 to 7 Years

Current Yield⁽²⁾

0.11% to 1.35

(1)	Includes ARS owned by the Company of $83.3 million included in the condensed consolidated balance sheet at June 30, 2013 as well as additional commitments to purchase ARS from clients of $33.9 million which is disclosed in these notes to the condensed consolidated financial statements.

(2)	Based on current auctions in comparable securities that have not failed.

Investments in Company-Sponsored Funds

The following table provides information about the Company’s investments in Company-sponsored funds at June 30, 2013:


(Expressed in thousands)	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
Hedge funds (1)	$	567	$	—	Quarterly—Annually	30—120 Days
Private equity funds (2)		3,807		803	N/A	N/A
Distressed opportunities investment trust (3)		7,847		—	N/A	N/A

	$	12,221	$	803

(1)	Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies.

(2)	Includes private equity funds and private equity fund of funds with a focus on diversified portfolios, real estate and global natural resources.

(3)	Special purpose vehicle that holds the interest in securities formerly held by one of the Company’s funds which utilized Lehman Brothers International (Europe) as a prime broker.

Assets and Liabilities Measured at Fair Value on Recurring Basis

The Company’s assets and liabilities, recorded at fair value on a recurring basis as of June 30, 2013 and December 31, 2012, have been categorized based upon the above fair value hierarchy as follows:

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2013


	Fair Value Measurements at June 30, 2013
(Expressed in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	56,495	$	—	$	—	$	56,495
Securities segregated for regulatory and other purposes		17,087		—		—		17,087
Deposits with clearing organizations		3,500		—		—		3,500
Securities owned
U.S Treasury securities		557,004		—		—		557,004
U.S. Agency securities		8,450		18,573		—		27,023
Sovereign obligations		—		2,068		—		2,068
Corporate debt and other obligations		—		11,979		—		11,979
Mortgage and other asset-backed securities		—		3,179		67		3,246
Municipal obligations		—		81,586		11,569		93,155
Convertible bonds		—		60,851		—		60,851
Corporate equities		34,486		10,646		—		45,132
Other		1,689		—		66,743		68,432

Securities owned, at fair value		601,629		188,882		78,379		868,890
Investments ⁽¹⁾		358		42,514		12,974		55,846
TBAs		—		1,750		—		1,750

Total	$	679,069	$	233,146	$	91,353	$	1,003,568

Liabilities
Securities sold, but not yet purchased
U.S Treasury securities	$	46,242	$	—	$	—	$	46,242
U.S. Agency securities		7,732		37		—		7,769
Sovereign obligations		—		1,015		—		1,015
Corporate debt and other obligations		—		3,187		—		3,187
Mortgage and other asset-backed securities		—		5		—		5
Municipal obligations		—		795		—		795
Convertible bonds		—		8,230		—		8,230
Corporate equities		30,247		13,510		—		43,757
Other		76		—		—		76

Securities sold, but not yet purchased at fair value		84,297		26,779		—		111,076
Investments		432		—		—		432
Derivative contracts		401		40		2,329		2,770
TBAs		—		1,599		—		1,599

Total	$	85,130	$	28,418	$	2,329	$	115,877

(1)	Included in other assets on the condensed consolidated balance sheet.

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2012


	Fair Value Measurements at December 31, 2012
(Expressed in thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents	$	58,945	$	—	$	—	$	58,945
Securities segregated for regulatory and other purposes		11,499		—		—		11,499
Deposits with clearing organizations		9,095		—		—		9,095
Securities owned
U.S Treasury securities		497,546		—		—		497,546
U.S. Agency securities		—		27,690		—		27,690
Sovereign obligations		—		19		—		19
Corporate debt and other obligations		2,459		11,969		—		14,428
Mortgage and other asset-backed securities		—		2,880		40		2,920
Municipal obligations		—		49,616		9,394		59,010
Convertible bonds		—		49,130		—		49,130
Corporate equities		31,958		11,750		—		43,708
Other		2,328		—		62,963		65,291

Securities owned, at fair value		534,291		153,054		72,397		759,742
Investments ⁽¹⁾		10,477		37,088		12,954		60,519
TBAs		—		3,188		—		3,188

	$	624,307	$	193,330	$	85,351	$	902,988

Liabilities
Securities sold, but not yet purchased
U.S Treasury securities	$	131,899	$	—	$	—	$	131,899
U.S. Agency securities		—		31		—		31
Corporate debt and other obligations		—		1,858		—		1,858
Mortgage and other asset-backed securities		—		18		—		18
Municipal obligations		—		467		—		467
Convertible bonds		—		8,868		—		8,868
Corporate equities		20,946		8,938		—		29,884
Other		325		—		100		425

Securities sold, but not yet purchased at fair value		153,170		20,180		100		173,450
Investments		258		—		—		258
Derivative contracts		286		124		2,647		3,057
TBAs		—		175		—		175

	$	153,714	$	20,479	$	2,747	$	176,940

(1)	Included in other assets on the condensed consolidated balance sheet.

Changes in Level 3 Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended June 30, 2013 and 2012:


	Level 3 Assets and Liabilities For the Three Months Ended June 30, 2013
(Expressed in thousands)	Beginning Balance		Total Realized and Unrealized Gains (Losses) ⁽⁴⁾⁽⁵⁾			Purchases and Issuances			Sales and Settlements			Transfers In (Out)			Ending Balance
Assets
Mortgage and other asset-backed securities ⁽¹⁾	$	52	$	7		$	50		$	(36	)	$	(6	)	$	67
Municipals		10,303		1,066			250			(50	)		—			11,569
Other ⁽²⁾		62,489		(571	)		5,925			(1,100	)		—			66,743
Investments ⁽³⁾		12,779		—			292			2			(99	)		12,974
Liabilities
Other ⁽²⁾		100		—			(100	)		—			—			—
Derivative contracts		2,094		235			—			—			—			2,329

(1)	Represents private placements of non-agency collateralized mortgage obligations.

(2)	Represents auction rate securities that failed in the auction rate market.

(3)	Primarily represents general partner ownership interests in hedge funds and private equity funds sponsored by the Company.

(4)	Included in principal transactions on the condensed consolidated statement of operations, except for investments which are included in other income on the condensed consolidated statement of operations.

(5)	Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date.


	Level 3 Assets and Liabilities
	For the Three Months Ended June 30, 2012
(Expressed in thousands)	Beginning Balance		Total Realized and Unrealized Gains (Losses) ⁽⁴⁾⁽⁵⁾			Purchases and Issuances		Sales and Settlements			Transfers In (Out)			Ending Balance
Assets
Mortgage and other asset-backed securities ⁽¹⁾	$	98	$	(23	)	$	3	$	(64	)	$	(2	)	$	12
Municipals		11,789		581			—		(2,250	)		—			10,120
Other ⁽²⁾		66,831		738			4,425		(7,350	)		—			64,644
Investments ⁽³⁾		13,132		(78	)		3		(297	)		—			12,760
Liabilities
Derivative contracts		3,907		(1,573	)		—		—			—			2,334

(1)	Represents private placements of non-agency collateralized mortgage obligations.

(2)	Represents auction rate securities that failed in the auction rate market.

(3)	Primarily represents general partner ownership interests in hedge funds and private equity funds sponsored by the Company.

(4)	Included in principal transactions on the condensed consolidated statement of operations, except for investments which are included in other income on the condensed consolidated statement of operations.

(5)	Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date.

The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the six months ended June 30, 2013 and 2012:


	Level 3 Assets and Liabilities
	For the Six Months Ended June 30, 2013
(Expressed in thousands)	Beginning Balance		Total Realized and Unrealized Gains (Losses) ⁽⁴⁾⁽⁵⁾			Purchases and Issuances			Sales and Settlements			Transfers In (Out)			Ending Balance
Assets
Mortgage and other asset-backed securities ⁽¹⁾	$	40	$	14		$	73		$	(54	)	$	(6	)	$	67
Municipals		9,394		925			1,450			(200	)		—			11,569
Other ⁽²⁾		62,963		(1,120	)		8,975			(4,075	)		—			66,743
Investments ⁽³⁾		12,954		623			125			(728	)		—			12,974
Liabilities
Other ⁽²⁾		100		—			(100	)		—			—			—
Derivative contracts		2,647		(318	)		—			—			—			2,329

(1)	Represents private placements of non-agency collateralized mortgage obligations.

(2)	Represents auction rate securities that failed in the auction rate market.

(3)	Primarily represents general partner ownership interests in hedge funds and private equity funds sponsored by the Company.

(4)	Included in principal transactions on the condensed consolidated statement of operations, except for investments which are included in other income on the condensed consolidated statement of operations.

(5)	Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date.


	Level 3 Assets and Liabilities
	For the Six Months Ended June 30, 2012
(Expressed in thousands)	Beginning Balance		Total Realized and Unrealized Gains (Losses) ⁽⁴⁾⁽⁵⁾			Purchases and Issuances			Sales and Settlements			Transfers In (Out)			Ending Balance
Assets
Mortgage and other asset-backed securities ⁽¹⁾	$	16	$	(6	)	$	83		$	(79	)	$	(2	)	$	12
Municipals		3,562		(497	)		9,305			(2,250	)		—			10,120
Other ⁽²⁾		65,001		(761	)		14,725			(14,321	)		—			64,644
Investments ⁽³⁾		12,482		437			127			(297	)		11			12,760
Liabilities
Other ⁽²⁾		50		—			(50	)		—			—			—
Derivative contracts		2,347		(13	)		—			—			—			2,334

(1)	Represents private placements of non-agency collateralized mortgage obligations.

(2)	Represents auction rate securities that failed in the auction rate market.

(3)	Primarily represents general partner ownership interests in hedge funds and private equity funds sponsored by the Company.

(4)	Included in principal transactions on the condensed consolidated statement of operations, except for investments which are included in other income on the condensed consolidated statement of operations.

(5)	Unrealized gains (losses) are attributable to assets or liabilities that are still held at the reporting date.

Assets and Liabilities Not Measured at Fair Value on Recurring Basis

Assets and liabilities not measured at fair value on a recurring basis as of June 30, 2013


					Fair Value Measurement: Assets
	As of June 30, 2013				As of June 30, 2013
(Expressed in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3		Total
Cash	$	106,098	$	106,098	$	106,098	$	—	$	—	$	106,098
Cash segregated for regulatory and other purposes		22,968		22,968		22,968		—		—		22,968
Deposits with clearing organization		22,871		22,871		22,871		—		—		22,871
Receivable from brokers and clearing organizations
Deposits paid for securities borrowed		191,214		191,214		—		191,214		—		191,214
Receivables from brokers		35,844		35,844		—		35,844		—		35,844
Securities failed to deliver		39,223		39,223		—		39,223		—		39,223
Clearing organizations		209		209		—		209		—		209
Omnibus accounts		16,778		16,778		—		16,778		—		16,778
Other		2,565		2,565		—		2,565		—		2,565

		285,833		285,833		—		285,833		—		285,833
Receivable from customers		964,597		964,597		—		964,597		—		964,597
Notes receivable		42,491		42,491		—		—		42,491		42,491
Other assets
Mortgage servicing rights (MSRs)		27,665		35,691		—		—		35,691		35,691
Mortgage receivable ⁽¹⁾		36,360		36,360		—		36,360		—		36,360
Loan receivable ⁽²⁾		7,126		7,126		—		—		7,126		7,126
Escrow deposit ⁽³⁾		25,000		25,000		25,000		—		—		25,000

(1)

Mortgage receivable balance represents loan amounts outstanding after funding but prior to Government National Mortgage Association (“GNMA”) securitization. Amount funded by warehouse facility (warehouse payable) is included in Accounts payable and other liabilities on condensed consolidated balance sheet (see note 4 below). Residual amount between asset and liability is funded with internally generated funds.

(2)	Loan receivable represents outstanding loan purchased out of GNMA pool on property that is in default. Amount funded by third-party is included in Accounts payable and other liabilities on condensed consolidated balance sheet (see note 5 below).

(3)	Represent escrow monies deposited with commercial bank. Offsets with payable to third party in Accounts payable and other liabilities on condensed consolidated balance sheet (see note 6 below).


					Fair Value Measurement: Liabilities
	As of June 30, 2013				As of June 30, 2013
(Expressed in thousands)	Carrying Value		Fair Value		Level 1		Level 2		Level 3		Total
Drafts payable	$	47,563	$	47,563	$	47,563	$	—	$	—	$	47,563
Bank call loans		219,800		219,800		219,800		—		—		219,800
Payables to brokers and clearing organizations
Deposits received for securities loaned		234,880		234,880		—		234,880		—		234,880
Securities failed to receive		15,496		15,496		—		15,496		—		15,496
Clearing organizations and other		4,343		4,343		—		4,343		—		4,343

		254,719		254,719		—		254,719		—		254,719
Payables to customers		632,653		632,653		—		632,653		—		632,653
Securities sold under agreements to repurchase		496,022		496,022		—		496,022		—		496,022
Accounts payable and other liabilities
Warehouse payable ⁽⁴⁾		11,939		11,939		—		11,939		—		11,939
Loan payable ⁽⁵⁾		7,126		7,126		—		—		7,126		7,126
Payable to third party ⁽⁶⁾		25,000		25,000		25,000		—		—		25,000
Senior secured notes		195,000		206,092		—		206,092		—		206,092

(4)	Warehouse payable represents loans outstanding under warehouse facility, provided by commercial bank but prior to GNMA securitization. Used to fund Mortgage receivable in Other assets on condensed consolidated balance sheet (see note 1 above).

(5)	Loan payable represents amount funded by third-party for loan purchased out of GNMA pool on property that is in default. Offsets with Loan receivable in Other assets on condensed consolidated balance sheet (see note 2 above).

(6)	Offsets with Escrow deposit in Other assets on condensed consolidated balance sheet (see note 3 above).

Notional and Fair Values of TBAs

The following table summarizes the notional and fair values of the TBAs as of June 30, 2013 and December 31, 2012:


	June 30, 2013				December 31, 2012
	Notional				Notional
(Expressed in thousands)	Amount		Fair Value		Amount		Fair Value
Sale of TBAs ⁽¹⁾	$	544,641	$	1,750	$	449,065	$	3,188
Purchase of TBAs	$	100,018	$	1,599	$	117,573	$	175
Funding Commitments		405,538				304,390

	$	505,556			$	421,963

(1)

TBAs are used to offset exposures related to commitments to provide funding for Federal Housing Administration (“FHA”) loans at OMHHF. At June 30, 2013, the loan commitments balance was $405.5 million ($304.4 million at December 31, 2012). In addition, at June 30, 2013, OMHHF had a loan receivable balance (included in other assets in the condensed consolidated balance sheet) of $36.4 million ($22.9 million at December 31, 2012) which relates to prior loan commitments that have been funded but have not yet been securitized. The “when issued” securitizations of these loans have been sold to market counter-parties.

Notional Amounts and Fair Values of Derivatives by Product

The notional amounts and fair values of the Company’s derivatives at June 30, 2013 and December 31, 2012 by product were as follows:


	Fair Value of Derivative Instruments at June 30, 2013
(Expressed in thousands)	Description	Notional		Fair Value
Liabilities
Derivatives not designated as hedging instruments ⁽¹⁾
Commodity contracts	U.S. Treasury Futures ⁽²⁾	$	51,000	$	401
	Federal Funds Futures ⁽²⁾		5,550,000		29
	Euro Dollars Futures ⁽²⁾		68,000		11
Other contracts	ARS purchase commitments ⁽³⁾		33,884		2,329

		$	5,702,884	$	2,770

(1)	See “Fair Value of Derivative Instruments” above for description of derivative financial instruments.

(2)	Included in payable to brokers and clearing organizations on the condensed consolidated balance sheet.

(3)	Included in other liabilities on the condensed consolidated balance sheet.


	Fair Value of Derivative Instruments at December 31, 2012
(Expressed in thousands)	Description	Notional		Fair Value
Liabilities
Derivatives not designated as hedging instruments ⁽¹⁾
Commodity contracts	U.S. Treasury Futures ⁽²⁾	$	56,000	$	286
	Federal Funds Futures ⁽²⁾		6,070,000		120
	Euro Dollars Futures ⁽²⁾		15,000		4
Other contracts	ARS purchase commitments ⁽³⁾		38,343		2,647

		$	6,179,343	$	3,057

(1)	See “Fair Value of Derivative Instruments” above for description of derivative financial instruments.

(2)	Included in payable to brokers and clearing organizations on the condensed consolidated balance sheet.

(3)	Included in other liabilities on the condensed consolidated balance sheet.

Fair Value Amounts of Derivative Instruments and Their Effect on Statement of Operations

The following table presents the location and fair value amounts of the Company’s derivative instruments and their effect on the condensed consolidated statement of operations for the three months ended June 30, 2013 and 2012:

(Expressed in thousands)

The Effect of Derivative Instruments on the Statement of Operations For the
Three Months Ended June 30, 2013

Recognized in Income on Derivatives
(pre-tax)

Reclassified from
Accumulated Other
Comprehensive
Income into Income
Effective Portion (1)
(after-tax)

Types

Description

Location

Gain
(Loss)

Location

Gain (Loss)

Commodity contracts

U.S. Treasury Futures

Principal transaction revenue

921

None

—

Federal Funds Futures

Principal transaction revenue

(107

)

None

—

Euro Dollars Futures

Principal transaction revenue

None

—

Other contracts

ARS purchase commitments

Principal transaction revenue

535

None

—

1,420

—

(1)	There is no ineffective portion included in income for the period ended June 30, 2013.

(Expressed in thousands)


	The Effect of Derivative Instruments on the Statement of Operations For the Three Months Ended June 30, 2012
		Recognized in Income on Derivatives (pre-tax)				Reclassified from Accumulated Other Comprehensive Income into Income Effective Portion (1) (after-tax)
Types	Description	Location	Gain (Loss)			Location	Gain (Loss)
Interest rate contracts	Caps ⁽²⁾	N/A	$	—		Interest expense	$	—
Commodity contracts	U.S. Treasury Futures	Principal transaction revenue		(894	)	None		—
	Federal Funds Futures	Principal transaction revenue		71		None		—
	Euro Dollars Futures	Principal transaction revenue		(28	)	None		—
Other contracts	ARS purchase commitments	Principal transaction revenue		1,572		None		—

			$	721			$	—

(1)	There is no ineffective portion included in income for the period ended June 30, 2012.

(2)

As noted above in “Cash flow hedges used for asset and liability management”, interest rate caps are used to hedge interest rate risk associated with the Subordinated Note. With the repayment of the Subordinated Note in the second quarter of 2011, this cap is no longer designated as a cash flow hedge. The cap expired worthless on December 31, 2012.

(Expressed in thousands)

The Effect of Derivative Instruments on the Statement of Operations For the Six
Months Ended June 30, 2013

Recognized in Income on Derivatives
(pre-tax)

Reclassified from
Accumulated Other
Comprehensive
Income into Income
Effective Portion (1)
(after-tax)

Types

Description

Location

Gain (Loss)

Location

Gain (Loss)

Commodity contracts

U.S. Treasury Futures

Principal transaction revenue

801

None

—

Federal Funds Futures

Principal transaction revenue

(52

)

None

—

Euro Dollars Futures

Principal transaction revenue

None

—

Other contracts

ARS purchase commitments

Principal transaction revenue

2,329

None

—

3,150

—

(1)	There is no ineffective portion included in income for the period ended June 30, 2013.

(Expressed in thousands)


	The Effect of Derivative Instruments on the Statement of Operations For the Six Months Ended June 30, 2012
		Recognized in Income on Derivatives (pre-tax)				Reclassified from Accumulated Other Comprehensive Income into Income Effective Portion (1) (after-tax)
Types	Description	Location	Gain (Loss)			Location	Gain (Loss)
Interest rate contracts	Swaps	N/A	$	—		Interest expense	$	—
	Caps ⁽²⁾	N/A		(12	)	Interest expense
Commodity contracts	U.S. Treasury Futures	Principal transaction revenue		(638	)	None		—
	Federal Funds Futures	Principal transaction revenue		260		None		—
	Euro Dollars Futures	Principal transaction revenue		(28	)	None		—
Other contracts	ARS purchase commitments	Principal transaction revenue		13		None		—

			$	(405	)		$	—

(1)	There is no ineffective portion included in income for the period ended June 30, 2012.

(2)

Schedule of Gross Amounts and Offsetting Amounts of Reverse Repurchase Agreements, Repurchase Agreements, Securities Borrowed and Securities Lending Transactions

The following tables present the gross amounts and the offsetting amounts of reverse repurchase agreements, repurchase agreements, securities borrowed and securities loaned transactions as of June 30, 2013 and December 31, 2012:


			As of June 30, 2013
							Gross Amounts Not Offset on the Balance Sheet
(Expressed in thousands)	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets Presented on the Balance Sheet		Financial Instruments			Cash Collateral Received		Net Amount
Reverse repurchase agreements	$	3,455,764	$	3,455,764	$	—	$	—		$	—	$	—
Securities borrowed ⁽¹⁾		191,214		—		191,214		(191,214	)		—		—

Total	$	3,646,978	$	3,455,764	$	191,214	$	(191,214	)	$	—	$	—

(1)	Included in receivable from brokers and clearing organizations on the condensed consolidated balance sheet.


							Gross Amounts Not Offset on the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented on the Balance Sheet		Financial Instruments			Cash Collateral Pledged		Net Amount
Repurchase agreements	$	3,951,786	$	3,455,764	$	496,022	$	(496,022	)	$	—	$	—
Securities loaned ⁽²⁾		234,880		—		234,880		(234,880	)		—		—

Total	$	4,186,666	$	3,455,764	$	730,902	$	(730,902	)	$	—	$	—

(2)	Included in payable to brokers and clearing organizations on the condensed consolidated balance sheet.


			As of December 31, 2012
							Gross Amounts Not Offset on the Balance Sheet
(Expressed in thousands)	Gross Amounts of Recognized Assets		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Assets Presented on the Balance Sheet		Financial Instruments			Cash Collateral Received		Net Amount
Reverse repurchase agreements	$	1,160,239	$	1,160,239	$	—	$	—		$	—	$	—
Securities borrowed ⁽¹⁾		365,642		—		365,642		(365,642	)		—		—

Total	$	1,525,881	$	1,160,239	$	365,642	$	(365,642	)	$	—	$	—

(1)	Included in receivable from brokers and clearing organizations on the condensed consolidated balance sheet.


							Gross Amounts Not Offset on the Balance Sheet
	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statement of Financial Position		Net Amounts of Liabilities Presented on the Balance Sheet		Financial Instruments			Cash Collateral Pledged		Net Amount
Repurchase agreements	$	1,552,630	$	1,160,239	$	392,391	$	(392,391	)	$	—	$	—
Securities loaned ⁽²⁾		190,387		—		190,387		(190,387	)		—		—

Total	$	1,743,017	$	1,160,239	$	582,778	$	(582,778	)	$	—	$	—

(2)	Included in payable to brokers and clearing organizations on the condensed consolidated balance sheet.

Variable Interest Entities

The following tables set forth the total VIE assets, the carrying value of the subsidiaries’ variable interests, and the Company’s maximum exposure to loss in Company-sponsored non-consolidated VIEs in which the Company holds variable interests and other non-consolidated VIEs in which the Company holds variable interests at June 30, 2013 and December 31, 2012:


	June 30, 2013
									Maximum
									Exposure
			Carrying Value of the						to Loss in
	Total		Company’s Variable Interest				Capital		Non-consolidated
(Expressed in thousands)	VIE Assets (1)		Assets (2)		Liabilities		Commitments		VIEs
Hedge funds	$	1,923,636	$	328	$	—	$	—	$	328
Private equity funds		111,693		32		—		8		40

Total	$	2,035,329	$	360	$	—	$	8	$	368

(1)	Represents the total assets of the VIEs and does not represent the Company’s interests in the VIEs.

(2)	Represents the Company’s interests in the VIEs and is included in other assets on the condensed consolidated balance sheet.


	December 31, 2012
									Maximum
									Exposure
			Carrying Value of the						to Loss in
	Total		Company’s Variable Interest				Capital		Non-consolidated
(Expressed in thousands)	VIE Assets (1)		Assets (2)		Liabilities		Commitments		VIEs
Hedge funds	$	1,868,178	$	372	$	—	$	—	$	372
Private equity funds		171,169		32		—		8		40

Total	$	2,039,347	$	404	$	—	$	8	$	412

(1)	Represents the total assets of the VIEs and does not represent the Company’s interests in the VIEs.

(2)	Represents the Company’s interests in the VIEs and is included in other assets on the condensed consolidated balance sheet.