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

12 Months Ended

Dec. 31, 2016

Trading Securities Balance Sheet Reported Amounts [Abstract]

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

NOTE 7 – 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, 2016 and 2015, are as follows (in thousands):

	December 31,
	2016		2015
Financial instruments owned:
U.S. government securities	$	9,951	$	45,167
U.S. government agency securities		89,833		116,949
Mortgage-backed securities:
Agency		305,774		205,473
Non-agency		28,402		33,319
Corporate securities:
Fixed income securities		299,946		203,910
Equity securities		32,044		31,642
State and municipal securities		159,095		112,983
	$	925,045	$	749,443
Financial instruments sold, but not yet purchased:
U.S. government securities	$	362,536	$	186,030
U.S. government agency securities		20,549		—
Mortgage-backed securities:
Agency		94,552		50,830
Non-agency		1		—
Corporate securities:
Fixed income securities		202,968		255,700
Equity securities		18,395		29,184
State and municipal securities		31		—
	$	699,032	$	521,744

At December 31, 2016 and 2015, financial instruments owned in the amount of $992.9 million and $508.5 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.