XML 41 R32.htm IDEA: XBRL DOCUMENT v3.23.1
Fair value measurements (Tables)
 3 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Investments in Company-Sponsored Funds
The following table provides information about the Company's investments in Company-sponsored funds as of March 31, 2023:
(Expressed in thousands)    
 Fair ValueUnfunded
Commitments		Redemption
Frequency		Redemption
Notice Period
Hedge funds (1)
$554 $— Quarterly - Annually
30 - 120 Days
Private equity funds (2)
12,747 2,893 N/AN/A
$13,301 $2,893 
(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 diversified portfolios focusing on but not limited to
technology companies, venture capital and global natural resources

The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2022:

(Expressed in thousands)    
 Fair ValueUnfunded
Commitments		Redemption
Frequency		Redemption
Notice Period
Hedge funds (1)
$574 $— Quarterly - Annually
30 - 120 Days
Private equity funds (2)
8,221 3,018 N/AN/A
$8,795 $3,018 
(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 diversified portfolios focusing on but not limited to technology companies, venture capital and global natural resources.
Schedule of 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 March 31, 2023, and December 31, 2022, 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 March 31, 2023:
(Expressed in thousands)    
 
Fair Value Measurements as of March 31, 2023
 Level 1Level 2Level 3Total
Assets
Deposits with clearing organizations$25,211 $— $— $25,211 
Securities owned:
U.S. Treasury securities618,227 — — 618,227 
U.S. Agency securities— 7,994 — 7,994 
Corporate debt and other obligations— 4,591 — 4,591 
Mortgage and other asset-backed securities— 2,741 — 2,741 
Municipal obligations— 38,183 — 38,183 
Convertible bonds— 29,812 — 29,812 
Corporate equities27,311 — — 27,311 
Money markets— 1,519 — 1,519 
Auction rate securities— — 31,776 31,776 
Securities owned, at fair value645,538 84,840 31,776 762,154 
Investments (1)
5,242 9,794 — 15,036 
TBAs— 21 — 21 
Derivative contracts, total— 21 — 21 
Total$675,991 $94,655 $31,776 $802,422 
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities$82,387 $— $— $82,387 
U.S. Agency securities— 2 — 2 
Corporate debt and other obligations— 208 — 208 
Convertible bonds— 13,732 — 13,732 
Corporate equities14,328 — — 14,328 
Securities sold but not yet purchased, at fair value96,715 13,942 — 110,657 
Derivative contracts:
Futures51 — — 51 
TBAs— 19 — 19 
Derivative contracts, total51 19 — 70 
Total$96,766 $13,961 $— $110,727 
(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, 2022:
(Expressed in thousands)    
 
Fair Value Measurements as of December 31, 2022
 Level 1Level 2Level 3Total
Assets
Deposits with clearing organizations$24,937 $— $— $24,937 
Securities owned:
U.S. Treasury securities362,815 — — 362,815 
U.S. Agency securities— 6,012 — 6,012 
Sovereign obligations— 9,502 — 9,502 
Corporate debt and other obligations— 9,844 — 9,844 
Mortgage and other asset-backed securities— 1,882 — 1,882 
Municipal obligations— 30,126 — 30,126 
Convertible bonds— 21,800 — 21,800 
Corporate equities24,837 — — 24,837 
Money markets— — — — 
Auction rate securities— — 31,776 31,776 
Securities owned, at fair value387,652 79,166 31,776 498,594 
Investments (1)
— 7,068 — 7,068 
Derivative contracts:
TBAs— 1,762 — 1,762 
Total$412,589 $87,996 $31,776 $532,361 
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities$25,006 $— $— $25,006 
U.S. Agency securities— 3 — 3 
Corporate debt and other obligations— 2,905 — 2,905 
Convertible bonds— 4,428 — 4,428 
Corporate equities11,378 — — 11,378 
Securities sold but not yet purchased, at fair value36,384 16,384 — 52,768 
Derivative contracts:
Futures44 — — 44 
TBAs— 1,761 — 1,761 
Derivative contracts, total44 1,761 — 1,805 
Total$36,428 $18,145 $— $54,573 
(1) Included in other assets on the condensed consolidated balance sheet.    
The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2023 and 2022:
(Expressed in thousands)
Level 3 Assets and Liabilities
For the Three Months Ended March 31, 2023
Total Realized
Beginningand UnrealizedPurchasesSales andTransfersEnding
Balance
Losses
and IssuancesSettlementsIn (Out)Balance
Assets
Auction rate securities (1)
$31,776 $— $— $— $— $31,776 
Liabilities
ARS Purchase Commitments (2)
— — — — — — 
(1) Represents auction rate securities that failed in the auction rate market.
(2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period.

(Expressed in thousands)
Level 3 Assets and Liabilities
For the Three Months Ended March 31, 2022
Total Realized
Beginningand UnrealizedPurchasesSales andTransfersEnding
BalanceLossesand IssuancesSettlementsIn (Out)Balance
Assets
Auction rate securities (1)
$31,804 $— $— $— $— $31,804 
Liabilities
ARS Purchase Commitments (2)
— — — — — — 
(1) Represents auction rate securities that failed in the auction rate market.
(2) Represents the difference in principal and fair value for auction rate securities purchase commitments outstanding at the end of the period.
Schedule of Financial Instruments, Estimate Not Practicable, Fair Value
Assets and liabilities not measured at fair value as of March 31, 2023:
(Expressed in thousands) Fair Value Measurement: Assets
 Carrying ValueLevel 1Level 2Level 3Total
Cash$30,320 $30,320 $— $— $30,320 
Restricted cash25,581 25,581 — — 25,581 
Deposits with clearing organization44,094 44,094 — — 44,094 
Receivable from brokers, dealers and clearing organizations:
Securities borrowed256,508 — 256,508 — 256,508 
Receivables from brokers72,942 — 72,942 — 72,942 
Securities failed to deliver12,488 — 12,488 — 12,488 
Clearing organizations and other 19,099 — 19,099 — 19,099 
361,037 — 361,037 — 361,037 
Receivable from customers1,054,316 — 1,054,316 — 1,054,316 
Notes receivable, net63,649 — 63,649 — 63,649 
Investments (1)
83,302 — 83,302 — 83,302 
(1) Included in other assets on the condensed consolidated balance sheet.
(Expressed in thousands) Fair Value Measurement: Liabilities
 Carrying ValueLevel 1Level 2Level 3Total
Drafts payable$18,024 $18,024 $— $— $18,024 
Bank call loans$19,300 $— $19,300 $— $19,300 
Payables to brokers, dealers and clearing organizations:
Securities loaned368,101 — 368,101 — 368,101 
Payable to brokers226 — 226 — 226 
Securities failed to receive10,105 — 10,105 — 10,105 
Clearing organization and other257,487 — 257,487 — 257,487 
635,919 — 635,919 — 635,919 
Payables to customers458,588 — 458,588 — 458,588 
Securities sold under agreements to repurchase280,436 — 280,436 — 280,436 
Senior secured notes113,050 — 105,986 — 105,986 

Assets and liabilities not measured at fair value as of December 31, 2022:
(Expressed in thousands) Fair Value Measurement: Assets
 Carrying ValueLevel 1Level 2Level 3Total
Cash$112,433 $112,433 $— $— $112,433 
Restricted cash25,534 25,534 — — 25,534 
Deposits with clearing organization52,754 52,754 — — 52,754 
Receivable from brokers, dealers and clearing organizations:
Securities borrowed127,817 — 127,817 — 127,817 
Receivables from brokers49,125 — 49,125 — 49,125 
Securities failed to deliver9,099 — 9,099 — 9,099 
Clearing organizations20,035 — 20,035 — 20,035 
Other— — — — — 
206,076 — 206,076 — 206,076 
Receivable from customers1,202,764 — 1,202,764 — 1,202,764 
Securities purchased under agreements to resell— — — — — 
Notes receivable, net57,495 — 57,495 — 57,495 
Investments (1)
79,322 — 79,322 — 79,322 
(1) Included in other assets on the condensed consolidated balance sheet.
(Expressed in thousands) Fair Value Measurement: Liabilities
 Carrying ValueLevel 1Level 2Level 3Total
Bank call loans$— $— $— $— $— 
Payables to brokers, dealers and clearing organizations:
Securities loaned320,843 — 320,843 — 320,843 
Payable to brokers123 — 123 — 123 
Securities failed to receive62,646 — 62,646 — 62,646 
Other166,350 — 166,350 — 166,350 
549,962 — 549,962 — 549,962 
Payables to customers456,475 — 456,475 — 456,475 
Securities sold under agreements to repurchase161,009 — 161,009 — 161,009 
Senior secured notes114,050 — 113,233 — 113,233 
Schedule of Notional Amounts and Fair Values of Derivatives by Product
The notional amounts and fair values of the Company's derivatives as of March 31, 2023 and December 31, 2022 by product were as follows:
(Expressed in thousands)   
 
Fair Value of Derivative Instruments as of March 31, 2023
 DescriptionNotionalFair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contractsTBAs$1,227 $21 
Forward reverse repurchase agreements 15,000 — 
$16,227 $21 
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts
Futures$3,880,000 $51 
       Other contractsTBAs1,277 19 
$3,881,277 $70 
(1)See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset.
(Expressed in thousands)   
 Fair Value of Derivative Instruments as of December 31, 2022
 DescriptionNotionalFair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contractsTBAs$1,775 $1,762 
Forward reverse repurchase agreements15,000 — 
Other275 $— 
$17,050 $1,762 
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts
Futures$1,912,500 $44 
       Other contractsTBAs1,775 1,761 
$1,914,275 $1,805 
(1)See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset.
Schedule of 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 in the condensed consolidated income statements for the three months ended March 31, 2023 and 2022:
(Expressed in thousands)   
 The Effect of Derivative Instruments in the Income Statement
 
For the Three Months Ended March 31, 2023
  Recognized in Income on Derivatives
(pre-tax)
TypesDescriptionLocationNet Gain/(Loss)
Commodity contractsFuturesPrincipal transactions revenue, net$210 
Other contractsForeign exchange forward contractsOther revenue(1)
Other contractsTBAsPrincipal transactions revenue, net2 
$211 
(Expressed in thousands)   
 The Effect of Derivative Instruments in the Income Statement
 
For the Three Months Ended March 31, 2022
  Recognized in Income on Derivatives
(pre-tax)
TypesDescriptionLocationNet Gain
Commodity contractsFuturesPrincipal transactions revenue, net$2,191 
Other contractsTBAsPrincipal transactions revenue, net63 
$2,254