Receivables From And Payables To Brokers, Dealers, And Clearing Agencies

9 Months Ended

Sep. 30, 2018

Receivables From And Payables To Brokers, Dealers, And Clearing Agencies [Abstract]

Receivables From And Payables To Brokers, Dealers, And Clearing Agencies

7. RECEIVABLES FROM AND PAYABLES TO BROKERS, DEALERS, AND CLEARING AGENCIES

Amounts receivable from brokers, dealers, and clearing agencies consisted of the following.



RECEIVABLES FROM BROKERS, DEALERS, AND CLEARING AGENCIES
(Dollars in Thousands)

	September 30, 2018		December 31, 2017
Deposits with clearing agencies	$	250	$	750
Unsettled regular way trades, net		2,543		-
Receivables from clearing agencies		82,578		102,846
Receivables from brokers, dealers, and clearing agencies	$	85,371	$	103,596

Amounts payable to brokers, dealers, and clearing agencies consisted of the following.



PAYABLES TO BROKERS, DEALERS, AND CLEARING AGENCIES
(Dollars in Thousands)

	September 30, 2018		December 31, 2017
Unsettled regular way trades, net	$	-	$	1,997
Margin payable		107,291		128,561
Payables to brokers, dealers, and clearing agencies	$	107,291	$	130,558

Deposits with clearing agencies represent contractual amounts the Company is required to deposit with its clearing agents.

Securities transactions that settle in the regular way are recorded on the trade date, as if they had settled. The related amounts receivable and payable for unsettled securities transactions are recorded net in receivables from or payables to brokers, dealers, and clearing agencies on the Company’s consolidated balance sheets.

Receivables from clearing agencies are primarily comprised of (1) cash received by the Company upon execution of short trades that is restricted from withdrawal by the clearing agent and (2) cash deposited with the FICC to support the Company’s General Collateral Funding (“GCF”) matched book repo business.

Margin payable represents amounts borrowed from Pershing, LLC to finance the Company’s trading portfolio. Effectively, all of the Company’s investments-trading and deposits with clearing agencies serve as collateral for the margin payable. See note 5 for interest expense incurred on margin payable.