Note 8.

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 manage our exposure to credit risk associated with these transactions by entering into master netting agreements. We also 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.

We receive securities as collateral under resale agreements, securities borrowing transactions and customer margin loans. We also receive securities as collateral in connection with certain securities for securities transactions in which we are the lender of securities. In many instances, we are permitted by contract or custom to rehypothecate the securities received as collateral. These securities may be used to secure repurchase agreements, enter into securities lending or derivative transactions or cover short positions. At February 28, 2013 and November 30, 2012, the approximate fair value of securities received as collateral by us that may be sold or repledged was $21.8 billion and $21.1 billion, respectively. The fair value of securities received as collateral at February 28, 2013 and November 30, 2012 that pertains to our securities financing activities at February 28, 2013 and November 30, 2012 are as follows (in thousands):


	February 28, 2013		November 30, 2012
Carrying amount:
Securities purchased under agreements to resell	$	3,578,366	$	3,357,602
Securities borrowed		5,315,488		5,094,679
Securities received as collateral		25,338		—

Total assets on Consolidated Statement of Financial Condition		8,919,192		8,452,281
Netting of securities purchased under agreements to resell (1)		9,027,147		9,982,752

		17,946,339		18,435,033
Fair value of collateral received in excess of contract amount (2)		3,854,353		2,683,767


Fair value of securities received as collateral	$	21,800,692	$	21,118,800

(1)	Represents the netting of securities purchased under agreements to resell with securities sold under agreements to repurchase balances for the same counterparty under legally enforceable netting agreements.

(2)

Includes collateral received from customers for margin balances unrelated to arrangements for securities purchased under agreements to resell or securities borrowed with a fair value of $1,381.0 million and $1,252.6 million at February 28, 2013 and November 30, 2012, respectively, of which $812.6 million and $727.7 million had been rehypothecated and collateral received on securities for securities transactions of $2,302.7 million and $1,378.8 million at February 28, 2013 and November 30, 2012, respectively.

At February 28, 2013 and November 30, 2012, a substantial portion of the securities received by us had been sold or repledged.

In instances where we are permitted to sell or repledge the securities received as collateral, we report the fair value of the collateral received and the related obligation to return the collateral in the Consolidated Statements of Financial Condition. At February 28, 2013 and November 30, 2012, $25.3 million and $-0- million, respectively, were reported as Securities received as collateral and as Obligation to return securities received as collateral.