Financial Instruments Owned And Financial Instruments Sold, But Not Yet Purchased

12 Months Ended

Dec. 31, 2017

Trading Securities Balance Sheet Reported Amounts [Abstract]

Financial Instruments Owned And Financial Instruments Sold, But Not Yet Purchased

NOTE 6 – Financial Instruments Owned and Financial Instruments Sold, But Not Yet Purchased

The components of financial instruments owned and financial instruments sold, but not yet purchased, at December 31, 2017 and 2016, are as follows (in thousands):

	December 31,
	2017		2016
Financial instruments owned:
U.S. government securities	$	13,466	$	9,951
U.S. government agency securities		147,223		89,833
Mortgage-backed securities:
Agency		329,691		305,774
Non-agency		75,154		28,402
Corporate securities:
Fixed income securities		329,179		269,561
Equity securities		46,802		32,044
Sovereign debt		32,470		30,385
State and municipal securities		169,699		159,095
	$	1,143,684	$	925,045
Financial instruments sold, but not yet purchased:
U.S. government securities	$	442,402	$	362,536
U.S. government agency securities		10,348		20,549
Mortgage-backed securities:
Agency		86,612		94,552
Non-agency		—		1
Corporate securities:
Fixed income securities		180,755		175,301
Equity securities		38,510		18,395
Sovereign debt		20,236		27,667
State and municipal securities		—		31
	$	778,863	$	699,032

At December 31, 2017 and 2016, financial instruments owned in the amount of $810.3 million and $992.9 million, respectively, were pledged as collateral (on a settlement-date basis) for our repurchase agreements and short-term borrowings. Financial instruments owned on a settlement-date basis were $1.3 billion at December 31, 2016. Our financial instruments owned are presented on a trade-date basis in the consolidated statements of financial condition.

Financial instruments 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.