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Note 10 - Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2020
Notes to Financial Statements |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 10. DERIVATIVE FINANCIAL INSTRUMENTS ﻿ The Company may, from time to time, enter into the following derivative instruments: Options ﻿ The Company may acquire publicly traded options from time to time. ﻿ Foreign Currency Forward Contracts ﻿ The Company invests in foreign currency denominated investments that expose it to fluctuations in foreign currency rates, and, therefore, the Company may, from time to time, hedge such exposure by using foreign currency forward contracts. The Company carries the foreign currency forward contracts at fair value and includes them as a component of other investments, at fair value in the Company's consolidated balance sheets. As of December 31, 2020 , and 2019 , the Company had no outstanding foreign currency forward contracts. ﻿ EuroDollar Futures ﻿ The Company invests in floating rate investments that expose it to fluctuations in interest and, therefore, the Company may, from time to time, hedge such exposure using EuroDollar futures. The Company carries the EuroDollar future contracts at fair value and includes them as a component of investments-trading or trading securities sold, not yet purchased in the Company's consolidated balance sheets. As of December 31, 2020 , and 2019 , the Company had no outstanding EuroDollar future contracts. ﻿ TBAs and Other Forward Agency MBS Contracts ﻿ The Company enters into TBAs and other forward agency MBS transactions for three main reasons. ﻿
| (i) | The Company trades U.S. government agency obligations. In connection with these activities, the Company may be required to maintain inventory in order to facilitate customer transactions. In order to mitigate exposure to market risk, the Company may enter into the purchase and sale of TBAs and other forward agency MBS contracts.
| (ii) | The Company also enters into TBAs and other forward agency MBS contracts in order to assist clients (generally small to mid-size mortgage loan originators) in hedging the interest rate risk associated with the mortgages owned by these clients.
| (iii) | Finally, the Company may enter into TBAs and other forward agency MBS contracts on a speculative basis.
﻿ The Company carries the TBAs and other forward agency MBS contracts at fair value and includes them as a component of investments—trading or trading securities sold, not yet purchased in the Company's consolidated balance sheets. At December 31, 2020 , the Company had open TBA and other forward MBS purchase agreements in the notional amount of $1,706,834 and open TBA and other forward MBS sale agreements in the notional amount of $1,809,550 . At December 31, 2019 , the Company had open TBA and other forward agency MBS purchase agreements in the notional amount of $1,773,000 and open TBA and other forward agency MBS sale agreements in the notional amount of $1,874,194. ﻿ Other Extended Settlement Trades ﻿ When the Company buys or sells a financial instrument that will not settle in the regular time frame, the Company will account for that purchase and sale on the settlement date rather than the trade date. In those cases, the Company accounts for the transaction between trade date and settlement date as either a forward purchase commitment or a forward sale commitment, both considered derivatives. The Company will record an unrealized gain or unrealized loss on the derivative for the difference between the fair value of the underlying financial instrument as of the reporting date and the agreed upon transaction price. At December 31, 2020 , the Company had open forward purchase commitments in the notional amount of $365 . At December 31, 2019 , the Company had open forward purchase commitments in the notional amount of $1,526. ﻿ The following table presents the Company's derivative financial instruments and the amount and location of the fair value (unrealized gain / (loss)) presented in the consolidated balance sheets as of December 31, 2020 and 2019 . ﻿ ﻿
DERIVATIVE FINANCIAL INSTRUMENTS-BALANCE SHEET INFORMATION
(Dollars in Thousands)
|  |  |  | As of December 31, |
Derivative Financial Instruments Not Designated as Hedging Instruments Under ASC 815 |  | Balance Sheet Classification |  | 2020 |  |  | 2019 |
TBA and other forward agency MBS |  | Investments-trading |  | $ | 13,717 |  |  | $ | 3,686 |
Other extended settlement trades |  | Investments-trading |  |  | - |  |  |  | - |
TBA and other forward agency MBS |  | Trading securities sold, not yet purchased |  |  | (11,822 | ) |  |  | (3,017 | )
Other extended settlement trades |  | Trading securities sold, not yet purchased |  |  | - |  |  |  | - |
Derivatives, publicly traded options |  | Other investments sold, not yet purchased |  |  | (233 | ) |  |  | - |
|  |  |  | $ | 1,662 |  |  | $ | 669 |
The following table presents the Company's derivative financial instruments and the amount and location of the net gain (loss) recognized in the consolidated statement of operations. ﻿ ﻿
DERIVATIVE FINANCIAL INSTRUMENTS-STATEMENT OF OPERATIONS INFORMATION
(Dollars in Thousands)
|  |  | For the Year Ended December 31, |
Derivative Financial Instruments Not Designated as Hedging Instruments Under ASC 815 | Income Statement Classification |  | 2020 |  |  | 2019 |  |  | 2018 |
Foreign currency forward contracts | Revenues-principal transactions and other income |  | $ | - |  |  | $ | 51 |  |  | $ | 87 |
Other extended settlement trades | Revenues-net trading |  |  | - |  |  |  | (70 | ) |  |  | 60 |
TBA and other forward agency MBS | Revenues-net trading |  |  | 5,219 |  |  |  | 6,545 |  |  |  | 6,053 |
Derivatives, publicly traded options | Other investments sold, not yet purchased |  |  | 105 |  |  |  | - |  |  |  | - |
|  |  | $ | 5,324 |  |  | $ | 6,526 |  |  | $ | 6,200 |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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- References No definition available. + Details
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