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

9 Months Ended

Sep. 30, 2023

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

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

6. 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 September 30, 2023		As of December 31, 2022
Receivables from and deposits with broker-dealers and clearing organizations
DTCC / OCC / NSCC (1)	$	7,277,000	$	8,187,000
Goldman Sachs & Co. LLC (“GSCO”)		34,000		31,000
Pershing Capital		—		96,000
National Financial Services, LLC (“NFS”)		1,988,000		2,006,000
Securities fail-to-deliver		469,000		3,000
Globalshares		76,000		82,000
Total Receivables from and deposits with broker-dealers and clearing organizations	$	9,844,000	$	10,405,000
Payables to broker-dealers and clearing organizations
Securities fail-to-receive	$	2,695,000	$	396,000
Payables to broker-dealers		751,000		264,000
Total Payables to broker-dealers and clearing organizations	$	3,446,000	$	660,000

⁽¹⁾ Depository Trust & 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 September 30, 2023 and December 31, 2022, MSCO had shares of DTCC common stock valued at approximately $1,236,000 and $1,054,000, respectively, which are included within 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, and had excess cash of approximately $1.0 million in its brokerage account at MSCO as of September 30, 2023. The resulting asset of RISE and liability of MSCO is eliminated in consolidation. The Company terminated its clearing relationships with GSCO and Pershing in 2022.