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Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Summary of fair value measurements measured on a recurring basis

Fair value measurements for those items measured on a recurring basis are summarized below as of December 31, 2020:


	December 31, 2020
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Counterparty and Cash Collateral Netting		Total Fair Value
Assets
Financial instruments owned, at fair value:
Equity securities	$	761,484	$	1,194,105	$	—	$	—	$	1,955,589
U.S. and Non-U.S. government obligations	151,723		48,059		—		—		199,782
Corporate Bonds	—		135,518		—		—		135,518
Exchange traded notes	106		19,721		—		—		19,827
Currency forwards	—		341,360		—		(291,964)		49,396
Options	9,080		—		—		—		9,080
	$	922,393	$	1,738,763	$	—	$	(291,964)	$	2,369,192

Financial instruments owned, pledged as collateral:
Equity securities	$	496,943	$	237,081	$	—	$	—	$	734,024

Exchange traded notes	2		12,513		—		—		12,515
	$	496,945	$	249,594	$	—	$	—	$	746,539

Other Assets
Equity investment	$	—	$	—	$	66,030	$	—	$	66,030
Exchange stock	2,286		—		—		—		2,286
	$	2,286	$	—	$	66,030	$	—	$	68,316

Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities	$	1,307,082	$	1,137,968	$	—	$	—	$	2,445,050
U.S. and Non-U.S. government obligations	83,173		19,984		—		—		103,157
Corporate Bonds	—		358,734		—		—		358,734
Exchange traded notes	—		7,431		—		—		7,431
Currency forwards	—		292,965		—		(292,870)		95
Options	9,241		—		—		—		9,241
	$	1,399,496	$	1,817,082	$	—	$	(292,870)	$	2,923,708

Payables to broker dealers and clearing organizations:
Interest rate swap	$	—	$	63,513	$	—	$	—	$	63,513

Fair value measurements for those items measured on a recurring basis are summarized below as of December 31, 2019:


	December 31, 2019
(in thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Counterparty and Cash Collateral Netting		Total Fair Value
Assets
Financial instruments owned, at fair value:
Equity securities	$	600,259	$	1,080,518	$	—	$	—	$	1,680,777
U.S. and Non-U.S. government obligations	106,690		20,847		—		—		127,537
Corporate Bonds	—		171,591		—		—		171,591
Exchange traded notes	243		48,894		—		—		49,137
Currency forwards	—		242,552		—		(211,398)		31,154
Options	8,538		—		—		—		8,538
	$	715,730	$	1,564,402	$	—	$	(211,398)	$	2,068,734
Financial instruments owned, pledged as collateral:
Equity securities	$	362,439	$	291,927	$	—	$	—	$	654,366

Exchange traded notes	12		42,578		—		—		42,590
	$	362,451	$	334,505	$	—	$	—	$	696,956
Other Assets
Equity investment	$	—	$	—	$	46,245	$	—	$	46,245
Exchange stock	2,721		—		—		—		2,721

	$	2,721	$	—	$	46,245	$	—	$	48,966




Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities	$	1,022,814	$	1,163,888	$	—	$	—	$	2,186,702
U.S. and Non-U.S. government obligations	39,091		2,713		—		—		41,804
Corporate Bonds	—		244,700		—		—		244,700
Exchange traded notes	15		21,631		—		—		21,646
Currency forwards	—		196,554		—		(196,535)		19
Options	3,087		—		—		—		3,087
	$	1,065,007	$	1,629,486	$	—	$	(196,535)	$	2,497,958

The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of December 31, 2020:


	December 31, 2020
	Carrying Value				Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)			Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and cash equivalents	$	889,559	$	889,559	$	889,559	$	—	$	—
Cash restricted or segregated under regulations and other	117,446		117,446		117,446		—		—
Securities borrowed	1,425,016		1,425,016		—		1,425,016		—
Securities purchased under agreements to resell	22,866		22,866		—		22,866		—
Receivables from broker-dealers and clearing organizations	1,684,006		1,684,006		173,578		1,510,428		—
Receivables from customers	214,478		214,478		—		214,478		—
Other assets (1)	21,735		21,735		—		21,735		—
Total Assets	$	4,375,106	$	4,375,106	$	1,180,583	$	3,194,523	$	—

Liabilities
Short-term borrowings	$	64,686	$	65,073	$	—	$	65,073	$	—
Long-term borrowings	1,639,280		1,672,456		—		1,672,456		—
Securities loaned	948,256		948,256		—		948,256		—
Securities sold under agreements to repurchase	461,235		461,235		—		461,235		—
Payables to broker-dealers and clearing organizations (2)	876,446		876,446		3,517		872,929		—
Payables to customers	118,826		118,826		—		118,826		—
Other liabilities (3)	9,208		9,208		—		9,208		—
Total Liabilities	$	4,117,937	$	4,151,500	$	3,517	$	4,147,983	$	—
(1) Includes cash collateral and deposits, and interest and dividends receivables.
(2) Payables to broker-dealers and clearing organizations include interest rate swaps carried at fair value.
(3) Includes deposits, interest and dividends payable.

The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of December 31, 2019:


	December 31, 2019
	Carrying Value				Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)			Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and cash equivalents	$	732,164	$	732,164	$	732,164	$	—	$	—
Cash restricted or segregated under regulations and other	41,116		41,116		41,116		—		—
Securities borrowed	1,928,763		1,928,763		—		1,928,763		—
Securities purchased under agreements to resell	143,032		143,032		—		143,032		—
Receivables from broker-dealers and clearing organizations (1)	1,318,584		1,318,584		40,842		1,277,742		—


Total Assets	4,163,659		4,163,659		814,122		3,349,537		—

Liabilities
Short-term borrowings	73,486		75,586		—		75,586		—
Long-term borrowings	1,917,866		1,966,850		—		1,966,850		—
Securities loaned	1,600,099		1,600,099		—		1,600,099		—
Securities sold under agreements to repurchase	340,742		340,742		—		340,742		—
Payables to broker dealer and clearing organizations	826,750		826,750		49,514		777,236		—


Total Liabilities	$	4,758,943	$	4,810,027	$	49,514	$	4,760,513	$	—
(1) Receivables from broker-dealers and clearing organizations include interest rate swap carried at fair value.

Fair Value Measurement Inputs and Valuation Techniques

The table below presents information on the valuation techniques, significant unobservable inputs and their ranges for the JNX Investment:

December 31, 2020

(in thousands)

Fair Value

Valuation Technique

Significant Unobservable Input

Range

Weighted Average

Equity investment

66,030

Discounted cash flow

Estimated revenue growth

(9.0)% - 39.0%

9.6

Discount rate

14.4% - 14.4%

14.4

Market

Future enterprise value/ EBIDTA ratio

12.2x - 21.9x

13.8x

December 31, 2019

(in thousands)

Fair Value

Valuation Technique

Significant Unobservable Input

Range

Weighted Average

Equity investment

46,245

Discounted cash flow

Estimated revenue growth

5.0% - 33.0%

18.7

Discount rate

14.4% - 14.4%

14.4

Market

Future enterprise value/ EBIDTA ratio

5.4x - 24.6x

14.1x

Summary of changes in Level 3 financial instruments measured at fair value on a recurring basis

The following presents the changes in the Company's Level 3 financial instruments measured at fair value on a recurring basis:


	Year Ended December 31, 2020
(in thousands)	Balance at December 31, 2019		Purchases		Total Realized and Unrealized Gains / (Losses) (1)		Net Transfers into (out of) Level 3		Settlement		Balance at December 31, 2020		Change in Net Unrealized Gains / (Losses) on Investments still held at December 31, 2020
Assets
Other assets:
Equity investment	$	46,245	$	—	$	19,785	$	—	$	—	$	66,030	$	19,785

Total	$	46,245	$	—	$	19,785	$	—	$	—	$	66,030	$	19,785
(1) Total realized and unrealized gains/(losses) includes gains and losses realized on the SBI Bonds (see Note 11 "Borrowings" for more details) due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment.


	Year Ended December 31, 2019
(in thousands)	Balance at December 31, 2018		Purchases		Total Realized and Unrealized Gains / (Losses) (1)		Net Transfers into (out of) Level 3		Settlement		Balance at December 31, 2019		Change in Net Unrealized Gains / (Losses) on Investments still held at December 31, 2019
Assets
Other assets:
Equity investment	$	45,856	$	—	$	389	$	—	$	—	$	46,245	$	389

Total	$	45,856	$	—	$	389	$	—	$	—	$	46,245	$	389
(1) Total realized and unrealized gains/(losses) includes gains and losses realized on the SBI Bonds (see Note 11 "Borrowings" for more details) due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment.

Summary of netting of certain financial assets

The following tables set forth the gross and net presentation of certain financial assets and financial liabilities as of December 31, 2020 and December 31, 2019:


	December 31, 2020
	Gross Amounts of Recognized Assets		Amounts Offset in the Consolidated Statements of Financial Condition		Net Amounts of Assets Presented in the Consolidated Statements of Financial Condition
							Amounts Not Offset in the Consolidated Statements of Financial Condition
(in thousands)							Financial Instrument Collateral		Counterparty Netting/ Cash Collateral		Net Amount
Offsetting of Financial Assets:
Securities borrowed	$	1,425,016	$	—	$	1,425,016	$	(1,374,266)	$	(9,686)	$	41,064
Securities purchased under agreements to resell	22,866		—		22,866		(22,866)		—		—
Trading assets, at fair value:
Currency forwards	341,360		(291,964)		49,396		—		—		49,396
Options	9,080		—		9,080		—		(9,080)		—
Total	$	1,798,322	$	(291,964)	$	1,506,358	$	(1,397,132)	$	(18,766)	$	90,460


	Gross Amounts of Recognized Liabilities		Amounts Offset in the Consolidated Statements of Financial Condition		Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition
							Amounts Not Offset in the Consolidated Statements of Financial Condition
(in thousands)							Financial Instruments		Counterparty Netting/ Cash Collateral		Net Amount
Offsetting of Financial Liabilities:
Securities loaned	$	948,256	$	—	$	948,256	$	(921,593)	$	(17,800)	$	8,863
Securities sold under agreements to repurchase	461,235		—		461,235		(461,235)		—		—
Payable to broker-dealers and clearing organizations
Interest rate swaps	63,513		—		63,513		—		(63,162)		351
Trading liabilities, at fair value:
Currency forwards	292,965		(292,870)		95		—		—		95
Options	9,241		—		9,241		—		(9,080)		161
Total	$	1,775,210	$	(292,870)	$	1,482,340	$	(1,382,828)	$	(90,042)	$	9,470


	December 31, 2019
	Gross Amounts of Recognized Assets		Amounts Offset in the Consolidated Statements of Financial Condition		Net Amounts of Assets Presented in the Consolidated Statements of Financial Condition
							Amounts Not Offset in the Consolidated Statements of Financial Condition
(in thousands)							Financial Instrument Collateral		Counterparty Netting/ Cash Collateral		Net Amount
Offsetting of Financial Assets:
Securities borrowed	$	1,928,763	$	—	$	1,928,763	$	(1,881,005)	$	(15,280)	$	32,478
Securities purchased under agreements to resell	143,032		—		143,032		(142,922)		—		110
Trading assets, at fair value:
Currency forwards	242,552		(211,398)		31,154		—		—		31,154
Options	8,538		—		8,538		(8,537)		—		1
Total	$	2,322,885	$	(211,398)	$	2,111,487	$	(2,032,464)	$	(15,280)	$	63,743


	Gross Amounts of Recognized Assets		Amounts Offset in the Consolidated Statements of Financial Condition		Net Amounts of Assets Presented in the Consolidated Statements of Financial Condition
							Amounts Not Offset in the Consolidated Statements of Financial Condition
(in thousands)							Financial Instrument Collateral		Counterparty Netting/ Cash Collateral		Net Amount
Offsetting of Financial Liabilities:
Securities loaned	$	1,600,099	$	—	$	1,600,099	$	(1,552,146)	$	(15,281)	$	32,672
Securities sold under agreements to repurchase	340,742		—		340,742		(340,718)		—		24
Trading liabilities, at fair value:
Currency forwards	196,554		(196,535)		19		—		—		19
Options	3,087		—		3,087		(3,087)		—		—
Total	$	2,140,482	$	(196,535)	$	1,943,947	$	(1,895,951)	$	(15,281)	$	32,715

Summary of netting of certain financial liabilities

The following tables set forth the gross and net presentation of certain financial assets and financial liabilities as of December 31, 2020 and December 31, 2019:


	December 31, 2020
	Gross Amounts of Recognized Assets		Amounts Offset in the Consolidated Statements of Financial Condition		Net Amounts of Assets Presented in the Consolidated Statements of Financial Condition
							Amounts Not Offset in the Consolidated Statements of Financial Condition
(in thousands)							Financial Instrument Collateral		Counterparty Netting/ Cash Collateral		Net Amount
Offsetting of Financial Assets:
Securities borrowed	$	1,425,016	$	—	$	1,425,016	$	(1,374,266)	$	(9,686)	$	41,064
Securities purchased under agreements to resell	22,866		—		22,866		(22,866)		—		—
Trading assets, at fair value:
Currency forwards	341,360		(291,964)		49,396		—		—		49,396
Options	9,080		—		9,080		—		(9,080)		—
Total	$	1,798,322	$	(291,964)	$	1,506,358	$	(1,397,132)	$	(18,766)	$	90,460


	Gross Amounts of Recognized Liabilities		Amounts Offset in the Consolidated Statements of Financial Condition		Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition
							Amounts Not Offset in the Consolidated Statements of Financial Condition
(in thousands)							Financial Instruments		Counterparty Netting/ Cash Collateral		Net Amount
Offsetting of Financial Liabilities:
Securities loaned	$	948,256	$	—	$	948,256	$	(921,593)	$	(17,800)	$	8,863
Securities sold under agreements to repurchase	461,235		—		461,235		(461,235)		—		—
Payable to broker-dealers and clearing organizations
Interest rate swaps	63,513		—		63,513		—		(63,162)		351
Trading liabilities, at fair value:
Currency forwards	292,965		(292,870)		95		—		—		95
Options	9,241		—		9,241		—		(9,080)		161
Total	$	1,775,210	$	(292,870)	$	1,482,340	$	(1,382,828)	$	(90,042)	$	9,470


	December 31, 2019
	Gross Amounts of Recognized Assets		Amounts Offset in the Consolidated Statements of Financial Condition		Net Amounts of Assets Presented in the Consolidated Statements of Financial Condition
							Amounts Not Offset in the Consolidated Statements of Financial Condition
(in thousands)							Financial Instrument Collateral		Counterparty Netting/ Cash Collateral		Net Amount
Offsetting of Financial Assets:
Securities borrowed	$	1,928,763	$	—	$	1,928,763	$	(1,881,005)	$	(15,280)	$	32,478
Securities purchased under agreements to resell	143,032		—		143,032		(142,922)		—		110
Trading assets, at fair value:
Currency forwards	242,552		(211,398)		31,154		—		—		31,154
Options	8,538		—		8,538		(8,537)		—		1
Total	$	2,322,885	$	(211,398)	$	2,111,487	$	(2,032,464)	$	(15,280)	$	63,743


	Gross Amounts of Recognized Assets		Amounts Offset in the Consolidated Statements of Financial Condition		Net Amounts of Assets Presented in the Consolidated Statements of Financial Condition
							Amounts Not Offset in the Consolidated Statements of Financial Condition
(in thousands)							Financial Instrument Collateral		Counterparty Netting/ Cash Collateral		Net Amount
Offsetting of Financial Liabilities:
Securities loaned	$	1,600,099	$	—	$	1,600,099	$	(1,552,146)	$	(15,281)	$	32,672
Securities sold under agreements to repurchase	340,742		—		340,742		(340,718)		—		24
Trading liabilities, at fair value:
Currency forwards	196,554		(196,535)		19		—		—		19
Options	3,087		—		3,087		(3,087)		—		—
Total	$	2,140,482	$	(196,535)	$	1,943,947	$	(1,895,951)	$	(15,281)	$	32,715

Summary of gross obligations for repurchase agreement and securities borrowed transactions by remaining contractual maturity and class of collateral pledged

The following table presents gross obligations for securities sold under agreements to repurchase and for securities lending transactions by remaining contractual maturity and the class of collateral pledged:


	December 31, 2020
	Remaining Contractual Maturity
(in thousands)	Overnight and Continuous		Less than 30 days		30 - 60 days		61 - 90 Days		Greater than 90 days		Total

Securities sold under agreements to repurchase:
Equity securities	$	—	$	125,000	$	50,000	$	200,000	$	—	$	375,000
U.S. and Non-U.S. government obligations	86,235										86,235
Total	86,235		125,000		50,000		200,000		—		461,235

Securities loaned:
Equity securities	948,256		—		—		—		—		948,256
Total	$	948,256	$	—	$	—	$	—	$	—	$	948,256


	December 31, 2019
	Remaining Contractual Maturity
(in thousands)	Overnight and Continuous		Less than 30 days		30 - 60 days		61 - 90 Days		Greater than 90 days		Total

Securities sold under agreements to repurchase:
Equity securities	$	—	$	75,000	$	50,000	$	150,000	$	—	$	275,000
U.S. and Non-U.S. government obligations	65,742		—		—		—		—		65,742
Total	65,742		75,000		50,000		150,000		—		340,742

Securities loaned:
Equity securities	1,600,099		—		—		—		—		1,600,099
Total	$	1,600,099	$	—	$	—	$	—	$	—	$	1,600,099