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Fair value measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair value measurements Fair value measurements
Securities owned, securities sold but not yet purchased, investments, derivative contracts and certain loans are carried at fair value with changes in fair value recognized in earnings each period. Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. A description of the valuation techniques applied and inputs used in measuring the fair value of the Company’s financial instruments, as well as the general classification of such instruments pursuant to the valuation hierarchy, are as follows:
Securities

The Company determines the fair value of securities (both long and short) primarily based on pricing sources with reasonable levels of price transparency. Where unadjusted quoted prices for identical assets or liabilities are available in an active market, we classify the securities within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities, money market funds and corporate equities.

If quoted market prices are unavailable, fair values are generally determined using pricing models which incorporate market observable inputs, such as benchmark yields, recently executed transaction prices, issuer spreads, reported trades, bids, offers and other reference data. Examples of such instruments, which are typically classified within Level 2 of the valuation hierarchy, include U.S. Agency securities, sovereign obligations, corporate debt and other obligations, mortgage and other asset-backed securities, municipal obligations, money market funds and convertible bonds.

In limited situations where there is reduced activity or less observability around inputs to the valuation, we classify those securities in Level 3 of the valuation hierarchy. The Company has valued the auction rate securities owned at the tender offer price and categorized them in Level 3 of the fair value hierarchy due to the illiquid nature of the securities and the period of time since the last tender offer. As of March 31, 2025 and December 31, 2024, the Company had $128,000 and $2.7 million respectively, of auction rate securities in Level 3 assets.

Derivative financial instruments

The Company classifies exchange-traded derivative financial instruments such as futures contracts in Level 1 of the valuation hierarchy. Some of our derivative positions, such as to-be-announced securities, are valued using models that use observable market parameters, and we classify them in Level 2 of the valuation hierarchy.
Loans

The fair value of loans is estimated using recently executed transactions and current price quotations, which are usually observable. In rare occurrences when observable pricing information is not available, fair value is generally determined based on cash flow models using discounted cash flow models, competitor comparable data and other valuation metrics.

Other

The Company owns an equity method investment in a financial technologies firm. The Company elected the fair value option for this investment and it is included in other assets on the consolidated balance sheet. The Company determined the fair value of the investment based on an implied market-multiple approach and observable market data, including comparable company transactions. As of March 31, 2025 and December 31, 2024, the fair value of the investment was $5.9 million and $5.9 million, respectively, and was categorized in Level 2 of the fair value hierarchy.

Trade claims are categorized in Level 3 of the fair value hierarchy due to the illiquid nature of the claims and the period of time since the executed prices. As of March 31, 2025, Company had $3.2 million of trade claims in Level 3 assets.
Investments    
In its role as general partner in certain hedge funds and private equity funds, the Company, through its subsidiaries, holds direct investments in such funds. The Company records these investments within other assets and uses the net asset value of the underlying fund as a basis for estimating the fair value of its investment unless another method provides a better indicator of fair value. Changes in the fair value of these investments are reflected within other income in the consolidated financial statements.
The following table provides information about the Company's investments in Company-sponsored funds as of March 31, 2025:
(Expressed in thousands)    
 Fair ValueUnfunded
Commitments		Redemption
Frequency		Redemption
Notice Period
Hedge funds (1)
$278 $— Quarterly - Annually
30 - 120 Days
Private equity funds (2)
5,141 856 N/AN/A
$5,419 $856 
(1) Hedge funds represent investments in credit driven strategies.
(2) Private equity funds includes portfolios focused on technology, infrastructure, real estate, natural resources and specific co-investment opportunities.

The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2024:

(Expressed in thousands)    
 Fair ValueUnfunded
Commitments		Redemption
Frequency		Redemption
Notice Period
Hedge funds (1)
$283 $— Quarterly - Annually
30 - 120 Days
Private equity funds (2)
5,090 1,314 N/AN/A
$5,373 $1,314 
(1) Hedge funds represent investments in credit driven strategies.
(2) Private equity funds includes portfolios focused on technology, infrastructure, real estate, natural resources and specific co-investment opportunities.
Assets and Liabilities Measured at Fair Value
The Company's assets and liabilities, recorded at fair value on a recurring basis as of March 31, 2025 and December 31, 2024, 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, 2025:
(Expressed in thousands)    
 
Fair Value Measurements as of March 31, 2025
 Level 1Level 2Level 3Total
Assets
Deposits with clearing organizations$31,340 $— $— $31,340 
Securities owned:
U.S. Treasury securities1,080,309 — — 1,080,309 
U.S. Agency securities— 3,861 — 3,861 
Sovereign obligations— 4,289 — 4,289 
Corporate debt and other obligations— 31,923 — 31,923 
Mortgage and other asset-backed securities— 8,723 — 8,723 
Municipal obligations— 32,568 — 32,568 
Convertible bonds— 16,929 — 16,929 
Corporate equities32,357 — — 32,357 
Money markets6,525 76 — 6,601 
Auction rate securities— — 128 128 
Securities owned, at fair value1,119,191 98,369 128 1,217,688 
Investments (1)
565 17,284 — 17,849 
Trade claims(1)
— — 3,218 3,218 
Loans(1)
— 797 — 797 
Total$1,151,096 $116,450 $3,346 $1,270,892 
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities$227,505 $— $— $227,505 
U.S. Agency securities— 2 — 2 
Corporate debt and other obligations— 33,014 — 33,014 
Convertible bonds— 5,774 — 5,774 
Corporate equities11,593 — — 11,593 
Securities sold but not yet purchased, at fair value239,098 38,790 — 277,888 
Derivative contracts:
Futures (2)
726 — — 726 
Derivative contracts, total726 — — 726 
Total$239,824 $38,790 $— $278,614 
(1) Included in other assets on the consolidated balance sheet.
(2) Included in receivable/payable from/to brokers, dealers and clearing organizations the consolidated balance sheet.
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2024:
(Expressed in thousands)    
 
Fair Value Measurements as of December 31, 2024
 Level 1Level 2Level 3Total
Assets
Deposits with clearing organizations28,071 $— $— $28,071 
Securities owned:
U.S. Treasury securities995,420 — — 995,420 
U.S. Agency securities— 3,691 — 3,691 
Corporate debt and other obligations— 9,423 — 9,423 
Mortgage and other asset-backed securities— 8,954 — 8,954 
Municipal obligations— 34,704 — 34,704 
Convertible bonds— 21,938 — 21,938 
Corporate equities23,873 — — 23,873 
Money markets7,551 — — 7,551 
Auction rate securities— — 2,652 2,652 
Securities owned, at fair value1,026,844 78,710 2,652 1,108,206 
Investments (1)
978 17,005 — 17,983 
Trade claims (1)
— — 2,684 2,684 
Loans (1)
— 432 — 432 
Total$1,055,893 $96,147 $5,336 $1,157,376 
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities$82,767 $— $— $82,767 
U.S. Agency securities— 4 — 4 
Corporate debt and other obligations— 11 — 11 
Convertible bonds— 4,998 — 4,998 
Corporate equities11,112 — — 11,112 
Securities sold but not yet purchased, at fair value93,879 5,013 — 98,892 
Derivative contracts:
Futures (2)
1,071 — — 1,071 
Derivative contracts, total1,071 — — 1,071 
Total$94,950 $5,013 $— $99,963 
(1) Included in other assets on the consolidated balance sheet.
(2) Included in receivable/payable to brokers, dealers and clearing organizations.    
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, 2025 and 2024:
(Expressed in thousands)
Level 3 Assets and Liabilities
For the Three Months Ended March 31, 2025
Total Realized
Beginningand UnrealizedPurchasesSales andTransfersEnding
Balance
Gain (2)
and IssuancesSettlementsIn (Out)Balance
Assets
Trade claims $2,684 $— $534 $— $— $3,218 
Auction rate securities (1)
$2,652 $206 $— $(2,730)$— $128 
(1) Represents auction rate securities that failed in the auction rate market.
(2) Included in principal transactions in the consolidated income statement.

(Expressed in thousands)
Level 3 Assets and Liabilities
For the Three Months Ended March 31, 2024
Total Realized
Beginningand UnrealizedPurchasesSales andTransfersEnding
Balance
Gain (2)
and IssuancesSettlementsIn (Out)Balance
Assets
Auction rate securities (1)
$2,713 $— $— $— $— $2,713 
(1) Represents auction rate securities that failed in the auction rate market.
(2) Included in principal transactions in the consolidated income statement.
Financial Instruments Not Measured at Fair Value
The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the consolidated balance sheets. The table below excludes non-financial assets and liabilities (e.g., furniture, equipment and leasehold improvements and accrued compensation).
The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 or Level 2 (e.g., cash and receivables from customers) approximates fair value because of the relatively short-term nature of the underlying assets.

Assets and liabilities not measured at fair value as of March 31, 2025:
(Expressed in thousands) Fair Value Measurement: Assets
 Carrying ValueLevel 1Level 2Level 3Total
Cash and cash equivalents$36,696 $36,696 $— $— $36,696 
Deposits with clearing organizations64,482 64,482 — — 64,482 
Receivable from brokers, dealers and clearing organizations:
Securities borrowed109,303 — 109,303 — 109,303 
Receivables from brokers59,537 — 59,537 — 59,537 
Securities failed to deliver43,625 — 43,625 — 43,625 
Clearing organizations and other 37,843 — 37,843 — 37,843 
250,308 — 250,308 — 250,308 
Receivable from customers1,349,938 — 1,349,938 — 1,349,938 
Notes receivable, net67,731 — 67,731 — 67,731 
Corporate-owned life insurance96,987 — 96,987 — 96,987 
Investments(1)
2,197 — 2,197 — 2,197 
(1) Included within other assets on the consolidated balance sheet.

(Expressed in thousands) Fair Value Measurement: Liabilities
 Carrying ValueLevel 1Level 2Level 3Total
Drafts payable$15,331 $15,331 $— $— $15,331 
Bank call loans359,500 — 359,500 — 359,500 
Payables to brokers, dealers and clearing organizations:
Securities loaned360,889 — 360,889 — 360,889 
Payable to brokers328 — 328 — 328 
Securities failed to receive20,252 — 20,252 — 20,252 
Clearing organization and other2,276 — 2,276 — 2,276 
383,745 — 383,745 — 383,745 
Payables to customers328,298 — 328,298 — 328,298 
Securities sold under agreements to repurchase866,413 — 866,413 — 866,413 
Assets and liabilities not measured at fair value as of December 31, 2024:

(Expressed in thousands) Fair Value Measurement: Assets
 Carrying ValueLevel 1Level 2Level 3Total
Cash and cash equivalents$33,150 $33,150 $— $— $33,150 
Deposits with clearing organization70,838 70,838 — — 70,838 
Receivable from brokers, dealers and clearing organizations:
Securities borrowed137,177 — 137,177 — 137,177 
Receivables from brokers59,487 — 59,487 — 59,487 
Securities failed to deliver8,459 — 8,459 — 8,459 
Clearing organizations and other36,355 — 36,355 — 36,355 
241,478 — 241,478 — 241,478 
Receivable from customers1,268,866 — 1,268,866 — 1,268,866 
Notes receivable, net67,931 — 67,931 — 67,931 
Corporate-owned life insurance98,828 — 98,828 — 98,828 
Investments (1)
1,634 — 1,634 — 1,634 
(1) Included within other assets on the consolidated balance sheet.

(Expressed in thousands) Fair Value Measurement: Liabilities
 Carrying ValueLevel 1Level 2Level 3Total
Drafts payable$21,661 $21,661 $— $— $21,661 
Bank call loans$252,100 $— $252,100 $— $252,100 
Payables to brokers, dealers and clearing organizations:
Securities loaned235,498 — 235,498 — 235,498 
Payable to brokers607 — 607 — 607 
Securities failed to receive14,757 — 14,757 — 14,757 
Clearing organizations and other 1,883 — 1,883 — 1,883 
252,745 — 252,745 — 252,745 
Payables to customers357,835 — 357,835 — 357,835 
Securities sold under agreements to repurchase931,754 — 931,754 — 931,754 
Derivative Instruments and Hedging Activities
The Company transacts, on a limited basis, in exchange traded and over-the-counter derivatives for both asset and liability management as well as for trading and investment purposes. Risks managed using derivative instruments include interest rate risk and, to a lesser extent, foreign exchange risk. All derivative instruments are measured at fair value and are recognized as either assets or liabilities on the consolidated balance sheet.

Foreign exchange hedges
From time to time, the Company also utilizes forward and options contracts to hedge the foreign currency risk associated with compensation obligations to Oppenheimer Israel (OPCO) Ltd. employees denominated in New Israeli Shekel ("NIS"). Such hedges have not been designated as accounting hedges. Unrealized gains and losses on foreign exchange forward contracts are recorded in other assets or other liabilities on the consolidated balance sheet and other income in the consolidated income statement.
Derivatives used for trading and investment purposes
Futures contracts represent commitments to purchase or sell securities or other commodities at a future date and at a specified price. Market risk exists with respect to these instruments. Notional or contractual amounts are used to express the volume of these transactions and do not represent the amounts potentially subject to market risk. The Company uses futures contracts, including U.S. Treasury Notes, federal funds, general collateral futures and Eurodollar contracts primarily as an economic hedge of interest rate risk associated with government trading activities. Unrealized gains and losses on futures contracts are recorded on the consolidated balance sheet in payable to or receivable from brokers, dealers and clearing organizations and in the consolidated income statement as principal transactions revenue, net.

To-be-announced securities
The Company also transacts in pass-through mortgage-backed securities eligible to be sold in the TBA market as economic hedges against mortgage-backed securities that it owns or has sold but not yet purchased. TBAs provide for the forward or delayed delivery of the underlying instrument with settlement up to 180 days. The contractual or notional amounts related to these financial instruments reflect the volume of activity and do not reflect the amounts at risk. Net unrealized gains and losses on TBAs are recorded on the consolidated balance sheet in receivable from brokers, dealers and clearing organizations or payable to brokers, dealers and clearing organizations and in the consolidated income statement as principal transactions revenue, net.

The notional amounts and fair values of the Company's derivatives as of March 31, 2025 and December 31, 2024 by product were as follows:
(Expressed in thousands)   
 
Fair Value of Derivative Instruments as of March 31, 2025
 DescriptionNotionalFair Value
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts
Futures$13,035,000 $726 
       Other contractsForward repurchase agreements257,188 — 
$13,292,188 $726 

(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, 2024
 DescriptionNotionalFair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contractsTBAs$360 $— 
$360 $— 
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts
Futures$11,475,000 $1,071 
       Other contractsTBAs360 — 
$11,475,360 $1,071 
(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.

The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the consolidated income statements for the three months ended March 31, 2025 and 2024:
(Expressed in thousands)   
 The Effect of Derivative Instruments in the Income Statement
 
For the Three Months Ended March 31, 2025
  Recognized in Income on Derivatives
(pre-tax)
TypesDescriptionLocationNet (Loss)
Commodity contractsFuturesPrincipal transactions revenue, net$(1,138)
$(1,138)
(Expressed in thousands)   
 The Effect of Derivative Instruments in the Income Statement
 
For the Three Months Ended March 31, 2024
  Recognized in Income on Derivatives
(pre-tax)
TypesDescriptionLocationNet Gain
Commodity contractsFuturesPrincipal transactions revenue, net$3,252 
Other contractsTBAsPrincipal transactions revenue, net1 
$3,253