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Related Party Disclosures
3 Months Ended
Mar. 31, 2019
Related Party Transactions [Abstract]  
Related Party Disclosures
11. Related Party Disclosures

StockCross

StockCross and the Company are under common ownership and StockCross serves as one of the two clearing brokers for the Company. StockCross has a clearing agreement with MSCO in which StockCross passes through all revenue and charges MSCO for related clearing expenses. Outside of the clearing agreement, MSCO has an expense sharing agreement with StockCross for its Beverly Hills office and StockCross pays some of the vendors for miscellaneous expenses which it passes through to MSCO. As of March 31, 2019 and December 31, 2018, MSCO had receivables from StockCross totaling approximately $1.7 million and $1.3 million, respectively, consisting of financing for inventory positions, the net monthly clearing fees StockCross owes MSCO, and a clearing deposit. As of March 31, 2019 and December 31, 2018, MSCO had a payable to StockCross totaling $21,000 and $46,000, respectively. In January 2019, the Company purchased approximately 15% of StockCross’ outstanding shares. Please see Item 4. Financial Statements and Supplementary Data – “Note 6 – Equity Method Investments” for additional detail on the transaction with StockCross.

KCA

KCA is an affiliate of the Company and StockCross. To gain efficiencies and economies of scale with billing and administrative functions, KCA serves as a paymaster for the Company and StockCross for compensation and benefits expenses, the entirety of which KCA passes through to the Company and StockCross proportionally. In addition, KCA has purchased the naming rights for the Company for the Company to use.

PWC

PWC brokers the insurance policies for related parties. Revenue for PWC from related parties was approximately $22,000 for the three months ended March 31, 2019.