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Revenues from Contracts with Customers
 9 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenues from Contracts with Customers Revenues from Contracts with Customers
Revenue Recognition

The Company adopted ASC Topic 606, Revenue from Contracts with Customers, as of January 1, 2018 in the condensed consolidated financial statements by applying the modified retrospective method. The Company’s revenue recognition methods for its contracts with customers prior to the adoption of Topic 606 are consistent with its methods after the adoption of Topic 606.

Commissions, net. The Company earns commission revenue by acting as an agent on behalf of customers. The Company’s performance obligations consist of trade execution and clearing services and are satisfied on the trade date; accordingly, commission revenues are recorded on the trade date. Commission revenues are paid on settlement date; therefore, a receivable is recognized as of the trade date. Under a commission management program, the Company allows institutional clients to allocate a portion of their gross commissions to pay for research and other services provided by third parties. As the Company acts as an agent in these transactions, it records such expenses on a net basis within Commissions, net and technology services in the Condensed Consolidated Statements of Comprehensive Income.

Workflow technology. Through its front-end workflow solutions and network capabilities, the Company provides order and trade execution management and order routing services.

The Company provides trade order routing from its execution management system (“EMS”) to its execution services offerings, with each trade order routed through the EMS representing a separate performance obligation that is satisfied at a point in time. Commissions earned are fixed and revenue is recognized on the trade date. A portion of the commissions earned on the trade is then allocated to workflow technology based on the stand-alone selling price paid by third-party brokers for order routing. The remaining commission is allocated to commissions, net using a residual allocation approach.

The Company participates in commission share arrangements, where trade orders are routed to third-party brokers from its EMS and its order management system (“OMS”). Commission share revenues from third-party brokers are generally fixed and revenue is recognized at a point in time on the trade date.

The Company provides OMS and related software products and connectivity services to customers and recognizes license fee revenues and monthly connectivity fees. License fee revenues, generated for the use of the Company’s OMS and other software products, is fixed and recognized at the point in time at which the customer is able to use and benefit from the license. Connectivity revenue is variable in nature, based on the number of live connections, and is recognized over time on a monthly basis using a time-based measure of progress.
Analytics. The Company provides customers with analytics products and services, including trading and portfolio analytics tools. The Company provides analytics products and services to customers and recognizes subscription fees, which are fixed for the contract term, based on when the products and services are delivered. Analytics services can be delivered either over time (when customers are provided with distinct ongoing access to analytics data) or at a point in time (when reports are only delivered to the customer on a periodic basis). Over time performance obligations are recognized using a time-based measure of progress on a monthly basis, since the analytics products and services are continually provided to the client. Point in time performance obligations are recognized when the analytics reports are delivered to the client.

Analytics products and services can also be paid for through variable bundled arrangements with trade execution services. Customers agree to pay for analytics products and services with commissions generated from trade execution services, and commissions are allocated to the analytics performance obligation(s) using:
(i)the commission value for each customer for the products and services it receives, which is priced using the value for similar stand-alone subscription arrangements; and
(ii)a calculated ratio of the commission value for the products and services relative to the total amount of commissions generated from the customer.

For these bundled commission arrangements, the allocated commissions to each analytics performance obligation are then recognized as revenue when the analytics product is delivered, either over time or at a point in time. These allocated commissions may be deferred if the allocated amount exceeds the amount recognizable based on delivery.

Disaggregation of Revenues

The following tables present the Company’s revenue from contracts with customers disaggregated by the services described above, by timing of revenue recognition, reconciled to the Company’s segments, for the three and nine months ended September 30, 2020 and 2019:
Three Months Ended September 30, 2020
(in thousands)Market MakingExecution ServicesCorporateTotal
Revenues from contracts with customers:
Commissions, net$9,391 $91,460 $— $100,851 
Workflow technology— 23,044 — 23,044 
Analytics— 9,958 — 9,958 
Total revenue from contracts with customers9,391 124,462 — 133,853 
Other sources of revenue465,207 58,218 (1,166)522,259 
Total revenues474,598 182,680 (1,166)656,112 
Timing of revenue recognition:
Services transferred at a point in time474,598 164,018 (1,166)637,450 
Services transferred over time— 18,662 — 18,662 
Total revenues$474,598 $182,680 $(1,166)$656,112 
Three Months Ended September 30, 2019
(in thousands)Market MakingExecution ServicesCorporateTotal
Revenues from contracts with customers:
Commissions, net$7,252 $98,365 $— $105,617 
Workflow technology— 24,041 — 24,041 
Analytics— 9,969 — 9,969 
Total revenue from contracts with customers7,252 132,375 — 139,627 
Other sources of revenue242,550 1,430 (1,267)242,713 
Total revenues249,802 133,805 (1,267)382,340 
Timing of revenue recognition:
Services transferred at a point in time249,802 114,300 (1,267)362,835 
Services transferred over time— 19,505 — 19,505 
Total revenues$249,802 $133,805 $(1,267)$382,340 
Nine Months Ended September 30, 2020
(in thousands)Market MakingExecution ServicesCorporateTotal
Revenues from contracts with customers:
Commissions, net$9,526 $333,823 $— $343,349 
Workflow technology— 78,376 — 78,376 
Analytics— 30,608 — 30,608 
Total revenue from contracts with customers9,526 442,807 — 452,333 
Other sources of revenue2,054,774 57,814 (2,286)2,110,302 
Total revenues2,064,300 500,621 (2,286)2,562,635 
Timing of revenue recognition:
Services transferred at a point in time2,064,300 444,683 (2,286)2,506,697 
Services transferred over time— 55,938 — 55,938 
Total revenues$2,064,300 $500,621 $(2,286)$2,562,635 

Nine Months Ended September 30, 2019
(in thousands)Market MakingExecution ServicesCorporateTotal
Revenues from contracts with customers:
Commissions, net$17,213 $259,846 $— $277,059 
Workflow technology— 58,369 — 58,369 
Analytics— 24,466 24,466 
Total revenue from contracts with customers17,213 342,681 — 359,894 
Other sources of revenue744,863 15,644 (2,528)757,979 
Total revenues762,076 358,325 (2,528)1,117,873 
Timing of revenue recognition:
Services transferred at a point in time762,076 311,772 (2,528)1,071,320 
Services transferred over time— 46,553 — 46,553 
Total revenues$762,076 $358,325 $(2,528)$1,117,873 
Remaining Performance Obligations and Revenue Recognized from Past Performance Obligations

As of September 30, 2020, the aggregate amount of the transaction price allocated to the performance obligations relating to technology services, workflow technology, and analytics revenues that are unsatisfied (or partially unsatisfied) was not material.

The Company recognized $0.6 million and $0.3 million of revenue related to performance obligations satisfied in previous period for the three months ended September 30, 2020 and 2019, respectively.

Contract Assets and Contract Liabilities

The timing of the revenue recognition may differ from the timing of payment from customers. The Company records a receivable when revenue is recognized prior to payment, and when the Company has an unconditional right to payment. The Company records a contract liability when payment is received prior to the time at which the satisfaction of the service obligation occurs.

Receivables related to revenues from contracts with customers amounted to $54.0 million and $53.6 million as of September 30, 2020 and December 31, 2019, respectively. The Company did not identify any contract assets. There were no impairment losses on receivables as of September 30, 2020.

Deferred revenue primarily relates to deferred commissions allocated to analytics products and subscription fees billed in advance of satisfying the performance obligations. Deferred revenue related to contracts with customers was $7.6 million and $8.6 million as of September 30, 2020 and December 31, 2019, respectively. The Company recognized revenue of $8.6 million and $8.1 million for the three months ended September 30, 2020 and 2019, respectively, and $23.6 million and $23.1 million for the nine months ended September 30, 2020 and 2019, respectively that had been initially recorded as deferred revenue.

The Company has not identified any costs to obtain or fulfill its contracts under ASC 606.