Trading Securities Owned and Trading Securities Sold, But Not Yet Purchased

9 Months Ended

Sep. 30, 2011

Trading Securities Owned and Trading Securities Sold, But Not Yet Purchased

Trading Securities Owned and Trading Securities Sold, But Not Yet Purchased

NOTE 7 – Trading Securities Owned and Trading Securities Sold, But Not Yet Purchased

The components of trading securities owned and trading securities sold, but not yet purchased, at December 31, 2011 and 2010, are as follows (in thousands):

	December 31, 2011		December 31, 2010
Trading securities owned:
U.S. government agency securities	$	66,424	$	86,882
U.S. government securities		32,845		9,038
Corporate securities:
Fixed income securities		244,535		221,145
Equity securities		38,551		46,877
State and municipal securities		111,288		80,228
	$	493,643	$	444,170
Trading securities sold, but not yet purchased:
U.S. government securities	$	109,776	$	131,561
U.S. government agency securities		954		664
Corporate securities:
Fixed income securities		149,460		61,026
Equity securities		6,060		6,800
State and municipal securities		583		89
	$	266,833	$	200,140

At December 31, 2011 and 2010, trading securities owned in the amount of $392.4 million and $272.2 million, respectively, were pledged as collateral for our repurchase agreements and short-term borrowings.

Trading securities sold, but not yet purchased, represent obligations of our company to deliver the specified security at the contracted price, thereby creating a liability to purchase the security in the market at prevailing prices in future periods. We are obligated to acquire the securities sold short at prevailing market prices in future periods, which may exceed the amount reflected in the consolidated statements of financial condition.