Derivatives

12 Months Ended

Dec. 31, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives

7. DERIVATIVES

The tables below present the fair value of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair value of the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 15) on the accompanying consolidated statements of financial condition as of December 31, 2022 and 2021. Notional amounts provide an indication of the volume of the Company's derivative activity.

Derivative assets and liabilities, as well as the related cash collateral from the same counterparty, have been netted on the consolidated statements of financial condition where the Company has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the consolidated statements of financial condition, and those derivative assets and liabilities are shown separately in the table below.

In addition to the cash collateral received and transferred that is presented on a net basis with derivative assets and liabilities, the Company receives and transfers additional securities and cash collateral. These amounts mitigate counterparty credit risk associated with the Company’s derivative instruments, but are not eligible for net presentation on the consolidated statements of financial condition.

	December 31, 2022
	Derivative Assets					Derivative Liabilities
	Fair Value			Notional		Fair Value			Notional
Forward foreign currency exchange rate contracts	$	1,356		$	170,103	$	921		$	128,098
Total return swaps and other		13,427			155,026		72			1,398
LGAC Warrants		-			-		115			11,500
LFI and other similar deferred compensation    arrangements		-			-		326,282			338,126
Total gross derivatives		14,783		$	325,129		327,390		$	479,122
Counterparty and cash collateral netting:
Forward foreign currency exchange rate contracts		(157	)				(158	)
Total return swaps and other		(72	)				(72	)
Net derivatives in "other assets" and "other liabilities"		14,554					327,160
Amounts not netted (a):
Cash collateral		-					-
Securities collateral		-					-
	$	14,554				$	327,160

	December 31, 2021
	Derivative Assets					Derivative Liabilities
	Fair Value			Notional		Fair Value			Notional
Forward foreign currency exchange rate contracts	$	1,005		$	253,059	$	761		$	174,550
Total return swaps and other		1,052			20,888		13,709			83,706
LGAC Warrants		-			-		10,005			11,500
LFI and other similar deferred compensation    arrangements		-			-		358,877			301,478
Total gross derivatives		2,057		$	273,947		383,352		$	571,234
Counterparty and cash collateral netting:
Forward foreign currency exchange rate contracts		(83	)				(83	)
Total return swaps and other		(1,052	)				(11,024	)
Net derivatives in "other assets" and "other liabilities"		922					372,245
Amounts not netted (a):
Cash collateral		-					(2,476	)
Securities collateral		-					(391	)
	$	922				$	369,378

(a) Amounts are subject to master netting arrangements but do not meet the criteria for netting on the consolidated statements of financial condition under U.S. GAAP. For some counterparties, the collateral amounts of securities and cash collateral pledged may exceed the derivative assets and derivative liabilities balances. Where this is the case, the total amount reported is limited to the net derivative assets and net derivative liabilities balances with that counterparty.

Net gains (losses) with respect to derivative instruments (included in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying consolidated statements of operations for the years ended December 31, 2022, 2021 and 2020, were as follows:

	Year Ended December 31,
	2022		2021			2020
Forward foreign currency exchange rate contracts	$	4,721	$	11,007		$	(8,356	)
LFI and other similar deferred compensation arrangements		44,261		(35,494	)		(40,634	)
LGAC Warrants		9,890		1,495			-
Total return swaps and other		23,212		(14,460	)		(9,236	)
Total	$	82,084	$	(37,452	)	$	(58,226	)

See Note 1 for additional information on LGAC Warrants.