Receivables From, Payables To, and Deposits With Broker-Dealers and Clearing Organizations

12 Months Ended

Dec. 31, 2022

Due to and from Broker-Dealers and Clearing Organizations [Abstract]

Receivables From, Payables To, and Deposits With Broker-Dealers and Clearing Organizations

5. Receivables From, Payables To, and Deposits With Broker-Dealers and Clearing Organizations

Amounts receivable from, payables to, and deposits with broker-dealers and clearing organizations consisted of the following as of the periods indicated:

	As of December 31, 2022		As of December 31, 2021
Receivables from and deposits with broker-dealers and clearing organizations
DTCC / OCC / NSCC (1)	$	8,187,000	$	10,968,000
GSCO		31,000		335,000
Pershing		96,000		1,193,000
NFS		2,006,000		974,000
Securities fail-to-deliver		3,000		174,000
Globalshares		82,000		55,000
Other receivables		—		27,000
Total Receivables from and deposits with broker-dealers and clearing organizations	$	10,405,000	$	13,726,000
Payables to broker-dealers and clearing organizations
Securities fail-to-receive	$	396,000	$	254,000
Payables to broker-dealers		264,000		—
Total Payables to broker-dealers and clearing organizations	$	660,000	$	254,000
(1) Depository Trust and Clearing Corporation is referred to as (“DTCC”), Options Clearing Corporation is referred to as (“OCC”), and National Securities Clearing Corporation is referred to as (“NSCC”).

Under the DTCC shareholders’ agreement, MSCO is required to participate in the DTCC common stock mandatory purchase. As of December 31, 2022 and 2021, MSCO had shares of DTCC common stock valued at approximately $1,054,000 and $905,000, respectively, which are included in the line item “Deposits with broker-dealers and clearing organizations” on the statements of financial condition.

In September 2022, MSCO and RISE entered into a clearing agreement whereby RISE would introduce clients to MSCO. As part of the agreement, RISE deposited a clearing fund escrow deposit of $50,000 to MSCO. The resulting asset of RISE and liability of MSCO are eliminated in consolidation. There was no income or expense related to this clearing relationship for the year ended December 31, 2022.

The Company is in the process of terminating its clearing relationships with GSCO and Pershing as of December 31, 2022. As of the date of this report, the Company is no longer doing active business with these clearing vendors, and anticipates the full termination of these relationships by the end of the first quarter of 2023.