Short-Term Borrowings

6 Months Ended

May. 31, 2015

Debt Disclosure [Abstract]

Short-Term Borrowings

Short-Term Borrowings

Short-term borrowings include bank loans that are payable on demand, as well as borrowings under revolving credit facilities that must be repaid within one year or less. Bank loans are typically overnight loans used to finance financial instruments owned or clearing related balances, but are not part of our systemic funding model and generally bear interest at a spread over the federal funds rate. Short-term borrowings at May 31, 2015 and November 30, 2014 were $362.0 million and $12.0 million, respectively. At May 31, 2015, the interest rate on short-term borrowings outstanding is 2.03% per annum. Average daily short-term borrowings outstanding were $77.0 million and $58.2 million for the three and six months ended May 31, 2015, respectively, and $181.3 million and $97.6 million for the three and six months ended May 31, 2014, respectively.

On April 23, 2015, we entered into a committed revolving credit facility (“Intraday Credit Facility”) with the Bank of New York Mellon. The Bank of New York Mellon agrees to make revolving intraday credit advances for an aggregate committed amount of $500.0 million in U.S. dollars. The term of the Intraday Credit Facility is six months after the closing date, but can be extended for additional six months upon request. The Intraday Credit Facility contains a financial covenant, which includes a minimum regulatory net capital requirement. Interest is based on the higher of the Federal funds effective rate plus 0.5% or the prime rate. At May 31, 2015, we were in compliance with debt covenants under the Intraday Credit Facility.