SECURITIES BORROWING AND LENDING

12 Months Ended

Dec. 31, 2022

NOTE 11: SECURITIES BORROWING AND LENDING

When we lend securities to third parties we receive cash as collateral for the securities loaned. In the table below, the cash collateral we hold related to loaned securities is presented in “securities loaned” and the fair value of securities lent is presented in “security collateral pledged.” Similarly, when we borrow securities from third parties or fully-paid securities from users, we provide cash collateral. In the table below, the amount of that cash collateral is presented in “securities borrowed” and the fair value of the securities received is presented in “security collateral received.”

Our securities lending transactions are subject to enforceable master netting arrangements with other broker-dealers; however, we do not net securities borrowing and lending transactions. Therefore, activity related to securities borrowing and lending activities are presented gross in our consolidated balance sheets (refer to Note 1 - Description of Business and Summary of Significant Accounting Policies, for more information).

The following tables set forth certain balances related to our securities borrowing and lending activities:


	December 31,
(in millions)	2021		2022
Assets	Securities borrowed
Gross amount of securities borrowed	$	—	$	517
Gross amount offset on the consolidated balance sheets	—		—
Amounts of assets presented on the consolidated balance sheets	—		517
Gross amount of securities borrowed not offset on the consolidated balance sheets:
Securities borrowed	—		517
Security collateral received	—		(509)
Net amount	$	—	$	8

Liabilities	Securities loaned
Gross amount of securities loaned	$	3,651	$	1,834
Gross amount of securities loaned offset on the consolidated balance sheets	—		—
Amounts of liabilities presented on the consolidated balance sheets	3,651		1,834
Gross amount of securities loaned not offset on the consolidated balance sheets:
Securities loaned	3,651		1,834
Security collateral pledged	(3,427)		(1,629)
Net amount	$	224	$	205

As described in Note 1 - Description of Business and Summary of Significant Accounting Policies, we obtain securities on terms that permit us to pledge and/or transfer securities to others. As of December 31, 2021 and 2022, we were permitted to re-pledge securities with a fair value of $9.21 billion and $4.36 billion under margin account agreements with users, and securities with a fair value of $0.3 million and $18.4 million that we had borrowed under MSLAs with third parties. Under the Fully-Paid Securities Lending program, as of December 31, 2022, we were permitted to re-pledge securities with a fair value of $4.45 billion including securities with a fair value of $490.4 million that we had borrowed from users.

As of December 31, 2021 and 2022, we had re-pledged securities with a fair value of $3.43 billion and $1.63 billion, in each case under MSLAs and Fixed-Term Securities Lending Agreements with third parties. In addition, as of December 31, 2021 and 2022, we had re-pledged $220.1 million and $231.2 million of the permitted amounts under the Margin Securities Lending program with clearing organizations to meet deposit requirements.