Collateralized Transactions

We enter into secured borrowing and lending arrangements to obtain collateral necessary to effect settlement, finance inventory positions, meet customer needs or re-lend as part of our dealer operations. We monitor the fair value of the securities loaned and borrowed on a daily basis as compared with the related payable or receivable, and request additional collateral or return excess collateral, as appropriate. We pledge financial instruments as collateral under repurchase agreements, securities lending agreements and other secured arrangements, including clearing arrangements. Our agreements with counterparties generally contain contractual provisions allowing the counterparty the right to sell or repledge the collateral. Pledged securities owned that can be sold or repledged by the counterparty are included within Financial instruments owned and noted parenthetically as Securities pledged on our Consolidated Statements of Financial Condition.

The following tables set forth the carrying value of securities lending arrangements and repurchase agreements by class of collateral pledged (in thousands):



	February 28, 2017
	Securities Lending Arrangements		Repurchase Agreements		Total
Collateral Pledged:
Corporate equity securities	$	1,839,036	$	167,950	$	2,006,986
Corporate debt securities	683,539		1,766,716		2,450,255
Mortgage- and asset-backed securities	—		2,836,035		2,836,035
U.S. government and federal agency securities	271		8,465,938		8,466,209
Municipal securities	—		511,340		511,340
Sovereign obligations	—		2,422,148		2,422,148
Loans and other receivables	—		230,762		230,762
Total	$	2,522,846	$	16,400,889	$	18,923,735



	November 30, 2016
	Securities Lending Arrangements		Repurchase Agreements		Total
Collateral Pledged:
Corporate equity securities	$	2,046,243	$	66,291	$	2,112,534
Corporate debt securities	731,276		1,907,888		2,639,164
Mortgage- and asset-backed securities	—		2,171,480		2,171,480
U.S. government and federal agency securities	41,613		9,232,624		9,274,237
Municipal securities	—		553,010		553,010
Sovereign obligations	—		2,625,079		2,625,079
Loans and other receivables	—		455,960		455,960
Total	$	2,819,132	$	17,012,332	$	19,831,464

The following tables set forth the carrying value of securities lending arrangements and repurchase agreements by remaining contractual maturity (in thousands):



	February 28, 2017
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending arrangements	$	1,250,755	$	—	$	712,777	$	559,314	$	2,522,846
Repurchase agreements	8,906,185		2,321,184		3,651,291		1,522,229		16,400,889
Total	$	10,156,940	$	2,321,184	$	4,364,068	$	2,081,543	$	18,923,735



	November 30, 2016
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
Securities lending arrangements	$	2,131,891	$	39,673	$	104,516	$	543,052	$	2,819,132
Repurchase agreements	9,147,176		2,008,119		3,809,533		2,047,504		17,012,332
Total	$	11,279,067	$	2,047,792	$	3,914,049	$	2,590,556	$	19,831,464

We receive securities as collateral under resale agreements, securities borrowing transactions and customer margin loans. We also receive securities as collateral in connection with securities-for-securities transactions in which we are the lender of securities. In many instances, we are permitted by contract to rehypothecate the securities received as collateral. These securities may be used to secure repurchase agreements, enter into securities lending transactions, satisfy margin requirements on derivative transactions or cover short positions. At February 28, 2017 and November 30, 2016, the approximate fair value of securities received as collateral by us that may be sold or repledged was $24.7 billion and $25.5 billion, respectively. At February 28, 2017 and November 30, 2016, a substantial portion of the securities received by us had been sold or repledged.

Offsetting of Securities Financing Agreements

To manage our exposure to credit risk associated with securities financing transactions, we may enter into master netting agreements and collateral arrangements with counterparties. Generally, transactions are executed under standard industry agreements, including, but not limited to, master securities lending agreements (securities lending transactions) and master repurchase agreements (repurchase transactions). See Note 2, Summary of Significant Accounting Policies, for additional information regarding the offsetting of securities financing agreements.

The following tables provide information regarding repurchase agreements and securities borrowing and lending arrangements that are recognized in the Consolidated Statements of Financial Condition and 1) the extent to which, under enforceable master netting arrangements, such balances are presented net in the Consolidated Statements of Financial Condition as appropriate under U.S. GAAP and 2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands).



	February 28, 2017
	Gross Amounts		Netting in Consolidated Statement of Financial Condition			Net Amounts in Consolidated Statement of Financial Condition		Additional Amounts Available for Setoff (1)			Available Collateral (2)			Net Amount (3)
Assets:
Securities borrowing arrangements	$	6,886,436	$	—		$	6,886,436	$	(671,142	)	$	(486,027	)	$	5,729,267
Reverse repurchase agreements	13,553,924		(9,085,430		)	4,468,494		(701,342		)	(3,711,705		)	55,447
Liabilities:
Securities lending arrangements	$	2,522,846	$	—		$	2,522,846	$	(671,142	)	$	(1,813,403	)	$	38,301
Repurchase agreements	16,400,889		(9,085,430		)	7,315,459		(701,342		)	(5,651,398		)	962,719



	November 30, 2016
	Gross Amounts		Netting in Consolidated Statement of Financial Condition			Net Amounts in Consolidated Statement of Financial Condition		Additional Amounts Available for Setoff (1)			Available Collateral (2)			Net Amount (4)
Assets:
Securities borrowing arrangements	$	7,743,562	$	—		$	7,743,562	$	(710,611	)	$	(647,290	)	$	6,385,661
Reverse repurchase agreements	14,083,144		(10,220,656		)	3,862,488		(176,275		)	(3,591,654		)	94,559
Liabilities:
Securities lending arrangements	$	2,819,132	$	—		$	2,819,132	$	(710,611	)	$	(2,064,299	)	$	44,222
Repurchase agreements	17,012,332		(10,220,656		)	6,791,676		(176,275		)	(5,780,909		)	834,492

(1)

Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty’s outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by counterparty in the event of a counterparty’s default, but which are not netted in the balance sheet because other netting provisions of U.S. GAAP are not met.


(2)	Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty’s rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements.


(3)	Amounts include $5,695.3 million of securities borrowing arrangements, for which we have received securities collateral of $5,505.2 million, and $948.0 million of repurchase agreements, for which we have pledged securities collateral of $975.5 million, which are subject to master netting agreements but we have not determined the agreements to be legally enforceable.


(4)	Amounts include $6,337.5 million of securities borrowing arrangements, for which we have received securities collateral of $6,146.0 million, and $810.4 million of repurchase agreements, for which we have pledged securities collateral of $834.2 million, which are subject to master netting agreements but we have not determined the agreements to be legally enforceable.

Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited with Clearing and Depository Organizations

Cash and securities deposited with clearing and depository organizations and segregated in accordance with regulatory regulations totaled $705.3 million and $857.3 million at February 28, 2017 and November 30, 2016, respectively. Segregated cash and securities consist of deposits in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, which subjects Jefferies as a broker-dealer carrying customer accounts to requirements related to maintaining cash or qualified securities in segregated special reserve bank accounts for the exclusive benefit of its customers.