The fair value of equities, options, on-the-run U.S. government obligations and exchange traded notes is estimated using recently executed transactions and market price quotations in active markets and are categorized as Level 1 with the exception of inactively traded equities and certain other financial instruments, which are categorized as Level 2. The Company’s corporate bonds, derivative contracts and other U.S. and non-U.S. government obligations have been categorized as Level 2. Fair value of the Company’s derivative contracts is based on the indicative prices obtained from a number of banks and broker-dealers, as well as management’s own analyses. The indicative prices have been independently validated through the Company’s risk management systems, which are designed to check prices with information independently obtained from exchanges and venues where such financial instruments are listed or to compare prices of similar instruments with similar maturities for listed financial futures in foreign exchange.

The Company prices certain financial instruments held for trading at fair value based on theoretical prices, which can differ from quoted market prices. The theoretical prices reflect price adjustments primarily caused by the fact that the Company continuously prices its financial instruments based on all available information. This information includes prices for identical and near-identical positions, as well as the prices for securities underlying the Company’s positions, on other exchanges that are open after the exchange on which the financial instruments is traded closes. The Company validates that all price adjustments can be substantiated with market inputs and checks the theoretical prices independently. Consequently, such financial instruments are classified as Level 2.


	December 31, 2021
(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	$	572,567	$	1,700,470	$	—	$	—	$	2,273,037
U.S. and Non-U.S. government obligations	337,350		18,519		—		—		355,869
Corporate Bonds	—		598,944		—		—		598,944
Exchange traded notes	10		2,459		—		—		2,469
Currency forwards	—		206,258		—		(206,125)		133
Options	8,543		—		—		—		8,543
	$	918,470	$	2,526,650	$	—	$	(206,125)	$	3,238,995

Financial instruments owned, pledged as collateral:
Equity securities	$	670,277	$	342,292	$	—	$	—	$	1,012,569

Exchange traded notes	—		5,391		—		—		5,391
	$	670,277	$	347,683	$	—	$	—	$	1,017,960

Other Assets
Equity investment	$	—	$	—	$	81,358	$	—	$	81,358
Exchange stock	3,020		—		—		—		3,020
	$	3,020	$	—	$	81,358	$	—	$	84,378

Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities	$	1,482,386	$	807,631	$	—	$	—	$	2,290,017
U.S. and Non-U.S. government obligations	330,765		9,955		—		—		340,720
Corporate Bonds	—		851,871		—		—		851,871
Exchange traded notes	—		22,962		—		—		22,962
Currency forwards	—		208,357		—		(208,356)		1
Options	5,208		—		—		—		5,208
	$	1,818,359	$	1,900,776	$	—	$	(208,356)	$	3,510,779

Payables to broker dealers and clearing organizations:
Interest rate swap	$	—	$	21,037	$	—	$	—	$	21,037


	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

The Company has a minority investment (the “JNX Investment”) in Japannext Co., Ltd. (“JNX”), formerly known as SBI Japannext Co., Ltd., a proprietary trading system based in Tokyo. In connection with the JNX Investment, the Company issued the SBI Bonds (as described in Note 10 "Borrowings") and used the proceeds to partially finance the transaction. The JNX Investment is included within Level 3 of the fair value hierarchy. As of December 31, 2020 and 2021, the fair value of the JNX Investment was determined using a weighted average of valuations using 1) the discounted cash flow method, an income approach; 2) a market approach based on average enterprise value/EBITDA ratios of comparable companies; and to a lesser extent 3) a transaction approach based on transaction values of comparable companies. The fair value measurement is highly sensitive to significant changes in the unobservable inputs, and significant increases (decreases) in discount rate or decreases (increases) in enterprise value/EBITDA multiples would result in a significantly lower (higher) fair value measurement.

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


	Year Ended December 31, 2021
(in thousands)	Balance at December 31, 2020		Purchases		Total Realized and Unrealized Gains / (Losses) (1)		Net Transfers into (out of) Level 3		Settlement		Balance at December 31, 2021		Change in Net Unrealized Gains / (Losses) on Investments still held at December 31, 2021
Assets
Other assets:
Equity investment	$	66,030	$	—	$	15,328	$	—	$	—	$	81,358	$	15,328

Total	$	66,030	$	—	$	15,328	$	—	$	—	$	81,358	$	15,328
(1) Total realized and unrealized gains/(losses) includes gains and losses realized on the SBI Bonds (see Note 10 "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, 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 10 "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.

The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the Consolidated Statements of Financial Condition. The table below excludes non-financial assets and liabilities. The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximates fair value due to the relatively short-term nature of the underlying assets. The fair value of the Company’s long-term borrowings is based on quoted prices from the market for similar instruments, and is categorized as Level 2 in the fair value hierarchy.


	December 31, 2021
	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	$	1,071,463	$	1,071,463	$	1,071,463	$	—	$	—
Cash restricted or segregated under regulations and other	49,490		49,490		49,490		—		—
Securities borrowed	1,349,322		1,349,322		—		1,349,322		—
Securities purchased under agreements to resell	119,453		119,453		—		119,453		—
Receivables from broker-dealers and clearing organizations	1,026,807		1,026,807		(24,037)		1,050,844		—
Receivables from customers	146,476		146,476		—		146,476		—
Other assets (1)	20,266		20,266		—		20,266		—
Total Assets	$	3,783,277	$	3,783,277	$	1,096,916	$	2,686,361	$	—

Liabilities
Short-term borrowings	$	61,510	$	63,046	$	—	$	63,046	$	—
Long-term borrowings	1,605,132		1,628,497		—		1,628,497		—
Securities loaned	1,142,048		1,142,048		—		1,142,048		—
Securities sold under agreements to repurchase	514,325		514,325		—		514,325		—
Payables to broker-dealers and clearing organizations (2)	571,526		571,526		235		571,291		—
Payables to customers	54,999		54,999		—		54,999		—
Other liabilities (3)	9,414		9,414		—		9,414		—
Total Liabilities	$	3,958,954	$	3,983,855	$	235	$	3,983,620	$	—
(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.


	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 dealer 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 Company does not net securities borrowed and securities loaned, or securities purchased under agreements to resell and securities sold under agreements to repurchase. These financial instruments are presented on a gross basis in the Consolidated Statements of Financial Condition. In the tables below, the amounts of financial instruments owned that are not offset in the Consolidated Statements of Financial Condition, but could be netted against financial liabilities with specific counterparties under legally enforceable master netting agreements in the event of default, are presented to provide financial statement readers with the Company’s estimate of its net exposure to counterparties for these financial instruments.


	December 31, 2021
	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	$	1,349,322	$	—	$	1,349,322	$	(1,299,270)	$	(5,054)	$	44,998
Securities purchased under agreements to resell	119,453		—		119,453		(119,453)		—		—
Trading assets, at fair value:
Currency forwards	206,258		(206,125)		133		—		—		133
Options	8,543		—		8,543		—		(5,208)		3,335
Total	$	1,683,576	$	(206,125)	$	1,477,451	$	(1,418,723)	$	(10,262)	$	48,466


	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	$	1,142,048	$	—	$	1,142,048	$	(1,107,688)	$	(17,272)	$	17,088
Securities sold under agreements to repurchase	514,325		—		514,325		(514,325)		—		—
Payable to broker-dealers and clearing organizations
Interest rate swaps	21,037		—		21,037		—		—		21,037
Trading liabilities, at fair value:
Currency forwards	208,357		(208,356)		1		—		—		1
Options	5,208		—		5,208		—		(5,208)		—
Total	$	1,890,975	$	(208,356)	$	1,682,619	$	(1,622,013)	$	(22,480)	$	38,126


	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 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	$	948,256	$	—	$	948,256	$	(921,593)	$	(17,800)	$	8,863
Securities sold under agreements to repurchase	461,235		—		461,235		(461,235)		—		—
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, 2021
	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	$	—	$	140,000	$	50,000	$	210,000	$	—	$	400,000
U.S. and Non-U.S. government obligations	114,325		—		—		—				114,325
Total	$	114,325	$	140,000	$	50,000	$	210,000	$	—	$	514,325

Securities loaned:
Equity securities	$	1,142,048	$	—	$	—	$	—	$	—	$	1,142,048
Total	$	1,142,048	$	—	$	—	$	—	$	—	$	1,142,048


	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