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Collateralized Securities Transactions
12 Months Ended
Dec. 31, 2012
Collateralized Securities Transactions Disclosure [Abstract]  
Collateralized Securities Transactions
Collateralized Securities Transactions

The Company’s financing and customer securities activities involve the Company using securities as collateral. In the event that the counterparty does not meet its contractual obligation to return securities used as collateral, or customers do not deposit additional securities or cash for margin when required, the Company may be exposed to the risk of reacquiring the securities or selling the securities at unfavorable market prices in order to satisfy its obligations to its customers or counterparties. The Company seeks to control this risk by monitoring the market value of securities pledged or used as collateral on a daily basis and requiring adjustments in the event of excess market exposure. The Company will also use an unaffiliated third party custodian to administer the underlying collateral for certain of its repurchase agreements and short-term financing to mitigate risk.

In the normal course of business, the Company obtains securities purchased under agreements to resell, securities borrowed and margin agreements on terms that permit it to repledge or resell the securities to others. The Company obtained securities with a fair value of approximately $186.1 million and $221.9 million at December 31, 2012 and 2011, respectively, of which $174.4 million and $196.9 million, respectively, had been pledged or otherwise transferred to satisfy its commitments under financial instruments and other inventory positions sold, but not yet purchased.

The following is a summary of the Company’s securities sold under agreements to repurchase (“Repurchase Liabilities”), the fair market value of related collateral pledged and the interest rate charged by the Company’s counterparty, which is based on LIBOR plus an applicable margin, as of December 31, 2012:
(Dollars in thousands)
Repurchase
Liabilities
 
Fair Market
Value
 
Interest Rate
Term of 30 to 90 day maturities:
 
 
 
 
 
Municipal securities:
 
 
 
 
 
Taxable securities
$
6,679

 
$
7,943

 
1.90%
Tax-exempt securities
27,339

 
32,889

 
1.90%
Short-term securities
11,409

 
13,740

 
1.90%
U.S. government agency securities
2,981

 
3,019

 
1.90%
U.S. government securities
1,592

 
1,624

 
1.90%
 
$
50,000

 
$
59,215