Assets and Liabilities, at Fair Value

6 Months Ended

Mar. 31, 2012

Assets and Liabilities, at Fair Value [Abstract]

Fair Value Disclosures [Text Block]

Assets and Liabilities, at Fair Value

The Company’s financial and nonfinancial assets and liabilities reported at fair value are included within the following captions on the condensed consolidated balance sheets:

• Cash and cash equivalents

• Cash, securities and other assets segregated under federal and other regulations

• Deposits and receivables from exchange-clearing organizations

• Deposits and receivables from broker-dealers, clearing organizations and counterparties

• Notes receivable

• Financial instruments owned

• Accounts payable and other accrued liabilities

• Payables to customers

• Financial instruments sold, not yet purchased

The table below sets forth an analysis of the carrying value of financial instruments owned and financial instruments sold, not yet purchased as of March 31, 2012 and September 30, 2011. This is followed by tables that provide the information required by the Fair Value Measurements and Disclosures Topic of the ASC for all financial assets and liabilities that are carried at fair value.

	March 31, 2012				September 30, 2011
(in millions)	Owned		Sold, not yet purchased		Owned		Sold, not yet purchased
Common stock and American Depositary Receipts ("ADRs")	$	39.0	$	29.4	$	46.9	$	23.4
Exchangeable foreign ordinary equities and ADRs	19.1		24.8		9.8		23.8
Corporate and municipal bonds	16.2		—		8.7		—
U.S. government obligations	19.3		—		0.8		—
Foreign government obligations	9.0		—		6.7		—
Derivatives	46.0		56.3		101.9		122.9
Commodities leases and unpriced positions	16.0		110.0		26.1		220.8
Commodities warehouse receipts	30.4		—		16.2		—
Exchange firm common stock	4.2		—		3.7		—
Mutual funds and other	0.5		—		1.0		—
Investment in managed funds	—		—		1.3		—
	$	199.7	$	220.5	$	223.1	$	390.9

Fair Value Hierarchy

The majority of financial assets and liabilities on the condensed consolidated balance sheets are reported at fair value. Cash is reported at the balance held at financial institutions. Cash equivalents include the value of money market funds and certificates of deposit. Cash, securities and other assets segregated under federal and other regulations include the value of cash collateral as well as the value of other pledged investments, primarily U.S. Treasury bills and obligations issued by government sponsored entities and commodities warehouse receipts. Deposits with and receivables from exchange-clearing organizations and broker-dealers, clearing organizations and counterparties and payables to customers and broker-dealers, clearing organizations and counterparties include the value of cash collateral as well as the value of money market funds and other pledged investments, primarily U.S. Treasury bills and obligations issued by government sponsored entities and mortgage-backed securities. These balances also include the fair value of exchange-traded futures and options on futures and exchange-cleared swaps and options. Notes receivable includes sale/repurchase agreements with customers whereby the customers sell certain commodity inventory and agree to repurchase the commodity inventory at a future date at a floating rate. The notes are carried at a value that is equivalent to the market price of the underlying commodities at the balance sheet date plus accrued interest and other fees. These notes are short-term in nature and this method approximates fair value. Financial instruments owned and sold, not yet purchased include the value of U.S. and foreign government obligations, corporate debt securities, derivative financial instruments, commodities, mutual funds and investments in managed funds. Notes payable and subordinated debt carry variable rates of interest and thus approximate fair value.

The fair value estimates presented in the financial statements are based on pertinent information available to management as of March 31, 2012 and September 30, 2011. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and current estimates of fair value may differ significantly from the amounts presented in the financial statements.

Cash equivalents, securities, commodities warehouse receipts, derivative financial instruments and contingent liabilities are carried at fair value, on a recurring basis, and are classified and disclosed into three levels within the fair value hierarchy. The Company did not have any fair value adjustments for assets or liabilities measured at fair value on a non-recurring basis during the six months ended March 31, 2012, except as disclosed in Note 14, if applicable. The three levels of the fair value hierarchy under the Fair Value Measurements and Disclosures Topic of the ASC are:

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 - Quoted prices for identical or similar assets or liabilities in markets that are less active, that is, markets in which there are few transactions for the asset or liability that are observable for substantially the full term; and

Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The following tables set forth the Company’s financial and nonfinancial assets and liabilities accounted for at fair value, on a recurring basis, as of March 31, 2012 and September 30, 2011 by level within the fair value hierarchy.

	March 31, 2012
(in millions)	Level 1		Level 2		Level 3		Netting and Collateral (1)			Total
Assets:
Money market funds	$	0.1	$	—	$	—	$	—		$	0.1
Certificate of deposits	7.6		—		—		—			7.6
Unrestricted cash equivalents	7.7		—		—		—			7.7
Commodities warehouse receipts	27.9		—		—		—			27.9
U.S. government obligations	—		46.8		—		—			46.8
Securities and other assets segregated under federal and other regulations	27.9		46.8		—		—			74.7
Money market funds	534.3		—		—		—			534.3
U.S. government obligations	—		690.3		—		—			690.3
Mortgage-backed securities	—		7.6		—		—			7.6
Derivatives	3,173.5		13.5		—		(3,256.2		)	(69.2		)
Deposits and receivables from exchange-clearing organizations	3,707.8		711.4		—		(3,256.2		)	1,163.0
U.S. government obligations	—		0.1		—		—			0.1
Derivatives	1.7		—		—		(0.9		)	0.8
Deposits and receivables from broker-dealers, clearing organizations and counterparties	1.7		0.1		—		(0.9		)	0.9
Common stock and ADRs	54.1		2.9		1.1		—			58.1
Corporate and municipal bonds	—		12.6		3.6		—			16.2
U.S. government obligations	—		19.3		—		—			19.3
Foreign government obligations	9.0		—		—		—			9.0
Derivatives	156.2		586.6		—		(696.8		)	46.0
Commodities leases and unpriced positions	—		38.8		—		(22.8		)	16.0
Commodities warehouse receipts	30.4		—		—		—			30.4
Exchange firm common stock	3.5		0.7		—		—			4.2
Mutual funds and other	0.1		—		0.4		—			0.5
Financial instruments owned	253.3		660.9		5.1		(719.6		)	199.7
Total assets at fair value	$	3,998.4	$	1,419.2	$	5.1	$	(3,976.7	)	$	1,446.0
Liabilities:
Accounts payable and other accrued liabilities - contingent liabilities	$	—	$	—	$	23.3	$	—		$	23.3
Payables to customers - derivatives	3,181.8		1.0		—		(3,182.8		)	—
Common stock and ADRs	53.5		0.7		—		—			54.2
Derivatives	171.5		565.1		—		(680.3		)	56.3
Commodities leases and unpriced positions	—		132.8		—		(22.8		)	110.0
Financial instruments sold, not yet purchased	225.0		698.6		—		(703.1		)	220.5
Total liabilities at fair value	$	3,406.8	$	699.6	$	23.3	$	(3,885.9	)	$	243.8

(1) Represents cash collateral and the impact of netting across the levels of the fair value hierarchy. Netting among positions classified within the same level are included in that level.

	September 30, 2011
(in millions)	Level 1		Level 2		Level 3		Netting and Collateral (1)			Total
Assets:
Money market funds	$	0.1	$	—	$	—	$	—		$	0.1
Certificate of deposits	12.6		—		—		—			12.6
Unrestricted cash equivalents	12.7		—		—		—			12.7
Commodities warehouse receipts	19.0		—		—		—			19.0
U.S. government obligations	—		3.7		—		—			3.7
Securities and other assets segregated under federal and other regulations	19.0		3.7		—		—			22.7
Money market funds	1,193.5		—		—		—			1,193.5
U.S. government obligations	—		470.5		—		—			470.5
Mortgage-backed securities	—		8.5		—		—			8.5
Derivatives	7,227.4		—		—		(7,491.7		)	(264.3		)
Deposits and receivables from exchange-clearing organizations	8,420.9		479.0		—		(7,491.7		)	1,408.2
U.S. government obligations	—		0.1		—		—			0.1
Derivatives	47.3		1,073.5		—		(1,104.7		)	16.1
Deposits and receivables from broker-dealers, clearing organizations and counterparties	47.3		1,073.6		—		(1,104.7		)	16.2
Common stock and ADRs	53.4		2.2		1.1		—			56.7
Corporate and municipal bonds	—		5.1		3.6		—			8.7
U.S. government obligations	—		0.8		—		—			0.8
Foreign government obligations	5.8		0.9		—		—			6.7
Derivatives	210.5		557.6		—		(666.2		)	101.9
Commodities leases and unpriced positions	—		66.3		—		(40.2		)	26.1
Commodities warehouse receipts	16.2		—		—		—			16.2
Exchange firm common stock	3.0		0.7		—		—			3.7
Mutual funds and other	0.6		—		0.4		—			1.0
Investment in managed funds	—		1.3		—		—			1.3
Financial instruments owned	289.5		634.9		5.1		(706.4		)	223.1
Total assets at fair value	$	8,789.4	$	2,191.2	$	5.1	$	(9,302.8	)	$	1,682.9
Liabilities:
Accounts payable and other accrued liabilities - contingent liabilities	$	—	$	—	$	22.3	$	—		$	22.3
Payables to customers - derivatives	6,234.7		—		—		(6,234.7		)	—
Common stock and ADRs	44.9		2.3		—		—			47.2
Derivatives	219.9		1,679.1		—		(1,776.1		)	122.9
Commodities leases and unpriced positions	—		431.9		—		(211.1		)	220.8
Financial instruments sold, not yet purchased	264.8		2,113.3		—		(1,987.2		)	390.9
Total liabilities at fair value	$	6,499.5	$	2,113.3	$	22.3	$	(8,221.9	)	$	413.2

(1) Represents cash collateral and the impact of netting across the levels of the fair value hierarchy. Netting among positions classified within the same level are included in that level.

Realized and unrealized gains and losses are included within ‘trading gains’ in the condensed consolidated income statements.

Information on Level 3 Financial Assets and Liabilities

The Company’s financial assets at fair value classified within level 3 of the fair value hierarchy as of March 31, 2012 and September 30, 2011 are summarized below:

(in millions)	March 31, 2012			September 30, 2011
Total level 3 assets	$	5.1		$	5.1
Level 3 assets for which the Company bears economic exposure	$	5.1		$	5.1
Total assets	$	2,531.4		$	2,635.7
Total financial assets at fair value	$	1,446.0		$	1,682.9
Total level 3 assets as a percentage of total assets	0.2		%	0.2		%
Level 3 assets for which the Company bears economic exposure as a percentage of total assets	0.2		%	0.2		%
Total level 3 assets as a percentage of total financial assets at fair value	0.4		%	0.3		%

The following tables set forth a summary of changes in the fair value of the Company’s level 3 financial assets and liabilities during the three and six months ended March 31, 2012 and 2011, including a summary of unrealized gains (losses) during the respective periods on the Company’s level 3 financial assets and liabilities still held as of March 31, 2012.

	Level 3 Financial Assets and Financial Liabilities For the Three Months Ended March 31, 2012
(in millions)	Balances at beginning of period		Realized gains (losses) during period		Unrealized gains (losses) during period		Settlements		Transfers in or (out) of Level 3		Balances at end of period
Assets:
Common stock and ADRs	$	1.1	$	—	$	—	$	—	$	—	$	1.1
Corporate and municipal bonds	3.5		—		0.1		—		—		3.6
Mutual funds and other	0.4		—		—		—		—		0.4
	$	5.0	$	—	$	0.1	$	—	$	—	$	5.1
Liabilities:
Contingent liabilities	$	22.9	$	—	$	0.4	$	—	$	—	$	23.3

	Level 3 Financial Assets and Financial Liabilities For the Six Months Ended March 31, 2012
(in millions)	Balances at beginning of period		Realized gains (losses) during period		Unrealized gains (losses) during period		Settlements			Transfers in or (out) of Level 3		Balances at end of period
Assets:
Common stock and ADRs	$	1.1	$	—	$	—	$	—		$	—	$	1.1
Corporate and municipal bonds	3.6		—		—		—			—		3.6
Mutual funds and other	0.4		—		—		—			—		0.4
	$	5.1	$	—	$	—	$	—		$	—	$	5.1
Liabilities:
Contingent liabilities	$	22.3	$	—	$	1.3	$	(0.3	)	$	—	$	23.3

	Level 3 Financial Assets and Financial Liabilities For the Three Months Ended March 31, 2011
(in millions)	Balances at beginning of period		Realized gains (losses) during period		Unrealized gains (losses) during period			Settlements		Transfers in or (out) of Level 3		Balances at end of period
Assets:
Common stock and ADRs	$	1.2	$	—	$	—		$	—	$	—	$	1.2
Corporate and municipal bonds	8.1		—		(2.8		)	—		—		5.3
Mutual funds and other	0.4		—		—			—		—		0.4
Investment in managed funds	0.6		—		0.2			—		—		0.8
	$	10.3	$	—	$	(2.6	)	$	—	$	—	$	7.7
Liabilities:
Contingent liabilities	$	30.0	$	—	$	0.5		$	—	$	—	$	30.5

	Level 3 Financial Assets and Financial Liabilities For the Six Months Ended March 31, 2011
(in millions)	Balances at beginning of period		Realized gains (losses) during period		Unrealized gains (losses) during period			Settlements			Transfers in or (out) of Level 3		Balances at end of period
Assets:
Common stock and ADRs	$	1.2	$	—	$	—		$	—		$	—	$	1.2
Corporate and municipal bonds	8.0		—		(2.7		)	—			—		5.3
Mutual funds and other	0.4		—		—			—			—		0.4
Investment in managed funds	0.6		—		0.2			—			—		0.8
	$	10.2	$	—	$	(2.5	)	$	—		$	—	$	7.7
Liabilities:
Contingent liabilities	$	32.3	$	—	$	1.9		$	(3.7	)	$	—	$	30.5

In August 2008, INTL Asia Pte, Ltd., a subsidiary of the Company, arranged a 550 million Thai Baht ("THB"), an $18 million U.S. dollar ("USD") equivalent, issue of debentures for the single asset owning company of Suriwongse Hotel located in Chiang Mai, Thailand. The debentures have a 9.5% coupon and were scheduled to mature in August 2011. The Company arranged for the sale of 375.5 million THB ($12.6 USD) of the debentures to two investors and the Company retained debentures in the amount of 174.5 million THB ($5.4 USD). The debentures are secured by a mortgage on the land and hotel buildings, the personal guarantee of the owner, and conditional assignments of accounts and agreements.

The proceeds of this issue were to be used to refinance the previous loan to the hotel owner, finance the hotel's renovation and fund interest up to 50.0 million THB. Renovations were initially planned to be completed by April 2011 and the outstanding debentures were to be refinanced following the completion of renovations.

In addition, the political and economic conditions in Thailand over the past two years have impacted the performance of the hotel. Following the interest capitalization period, the hotel owner was able to meet four quarterly interest payments on the debentures, however the hotel owner defaulted on the interest payment that was due in March 2011. The Company and other debenture holders have exercised their rights under the share pledge provisions of the debentures, and held a share auction of 100% of the shares of the single asset owning company. The debenture holders won the share auction and the previous owner, who is also a personal guarantor of the debentures, has filed a complaint to revoke the completed auction. The Company intends to vigorously defend actions taken in its capacity as a debenture holder. Judgment in the lawsuit filed by the previous owner is expected during the third quarter of fiscal 2012.

In accordance with the Fair Value Measurements and Disclosures Topic of the ASC, the Company has estimated the fair value of the debentures on a recurring basis each period. The Company has classified its investment in the hotel within level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs, which include projected cash flows. These cash flows are discounted employing present value techniques. At March 31, 2011, due to the issues discussed previously, the Company estimated the fair value of its investment in these debentures by using a management-developed forecast, which is based on the income approach. The Company recorded a loss of $1.7 million, representing an other than temporary impairment, for the three and six months ended March 31, 2011. The Company continues to monitor the hotel renovation process and evaluate the fair value of the debentures. There has been no significant change in the fair value of the debentures, and no additional loss has been recognized during the three and six months ended March 31, 2012.

The Company is required to make additional future cash payments based on certain financial performance measures of its acquired businesses. The Company is required to remeasure the fair value of the cash earnout arrangements on a recurring basis in accordance with the guidance in the Business Combinations Topic of the ASC. The Company has classified its net liabilities for the contingent earnout arrangements within level 3 of the fair value hierarchy because the fair value is determined using significant unobservable inputs, which include projected cash flows. The estimated fair value of the contingent purchase consideration is based upon management-developed forecasts, a level 3 input in the fair value hierarchy. These cash flows are discounted employing present value techniques in arriving at the acquisition-date fair value. The discount rate was developed using market participant company data, a level 2 input in the fair value hierarchy, and there have been no significant changes in the discount rate environment. From the dates of acquisition to March 31, 2012, certain acquisitions have had changes in the estimates of undiscounted cash flows, based on actual performances fluctuating from estimates. During the three and six months ended March 31, 2012, the fair value of the contingent consideration changed $0.4 million and $1.3 million, respectively, with the corresponding amount classified as 'other' within the condensed consolidated income statements.

The Company reports transfers in and out of levels 1, 2 and 3, as applicable, using the fair value of the securities as of the beginning of the reporting period in which the transfer occurred.

The Company did not have any transfers between level 1 and level 2 fair value measurements for the three and six months ended March 31, 2012.

The Company has recorded unrealized gains, net of income tax expense, related to U.S. government obligations and corporate bonds classified as available-for-sale securities in OCI as of March 31, 2012. The following tables summarize the amortized cost basis, the aggregate fair value and gross unrealized holding gains and losses of the Company’s investment securities classified as available-for-sale as of March 31, 2012 and September 30, 2011:

March 31, 2012
Amounts included in financial instruments owned:
	Amortized Cost		Unrealized Holding (1)				Estimated Fair Value
(in millions)			Gains		(Losses)
U.S. government obligations	$	19.0	$	—	$	—	$	19.0
	$	19.0	$	—	$	—	$	19.0

Amounts included in deposits with and receivables from exchange-clearing organizations:
	Amortized Cost		Unrealized Holding (1)				Estimated Fair  Value
(in millions)			Gains		(Losses)
U.S. government obligations	$	672.1	$	—	$	—	$	672.1
Mortgage-backed securities	7.6		—		—		7.6
	$	679.7	$	—	$	—	$	679.7

(1) Unrealized gain/loss on financial instruments owned as of March 31, 2012 is less than $0.1 million.

September 30, 2011
Amounts included in financial instruments owned:
	Amortized Cost		Unrealized Holding (1)				Estimated Fair  Value
(in millions)			Gains		(Losses)
U.S. government obligations	$	0.5	$	—	$	—	$	0.5
Corporate bonds	5.0		—		—		5.0
	$	5.5	$	—	$	—	$	5.5

(1) Unrealized gain/loss on financial instruments owned as of September 30, 2011 is less than $0.1 million.

Amounts included in deposits with and receivables from exchange-clearing organizations:
	Amortized Cost		Unrealized Holding				Estimated Fair  Value
(in millions)			Gains		(Losses)
U.S. government obligations	$	440.6	$	0.1	$	—	$	440.7
Mortgage-backed securities	8.3		0.2		—		8.5
	$	448.9	$	0.3	$	—	$	449.2

As of March 31, 2012 and September 30, 2011, investments in debt securities classified as available-for-sale ("AFS") mature as follows:

March 31, 2012
	Due in				Estimated Fair  Value
(in millions)	Less than 1 year		1 year or more
U.S. government obligations	$	691.1	$	—	$	691.1
Mortgage-backed securities	—		7.6		7.6
	$	691.1	$	7.6	$	698.7

September 30, 2011
	Due in				Estimated Fair Value
(in millions)	Less than 1 year		1 year or more
U.S. government obligations	$	441.2	$	—	$	441.2
Corporate bonds	5.0		—		5.0
Mortgage-backed securities	—		8.5		8.5
	$	446.2	$	8.5	$	454.7

There were no sales of AFS securities during the three and six months ended March 31, 2012 and 2011, and as a result, no realized gains or losses were recorded for the three and six months ended March 31, 2012 and 2011.

For the purposes of the maturity schedule, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the expected maturity of the underlying collateral. Mortgage-backed securities may mature earlier than their stated contractual maturities because of accelerated principal repayments of the underlying loans.

The Company has also classified equity investments in exchange firms' common stock not pledged for clearing purposes as available-for-sale. The investments are recorded at fair value, with unrealized gains and losses recorded, net of taxes, as a component of OCI until realized. As of March 31, 2012, the cost and fair value of the equity investments in exchange firms was $4.4 million and $4.2 million, respectively. The Company recorded unrealized losses of $0.1 million, net of income tax benefit of $0.1 million in OCI related to equity investments in exchange firms as of March 31, 2012. The Company monitors the fair value of exchange common stock on a periodic basis, and does not consider any current unrealized losses to be anything other than a temporary impairment.