Securities and Commodity Financing Transactions

The Company enters into securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned transactions to, among other things, fund principal debt trading, acquire securities to cover short positions, acquire securities for settlement, and to accommodate counterparties’ needs under matched-book trading strategies. These agreements are recorded as collateralized financings at their contractual amounts plus accrued interest. The related interest is recorded in the condensed consolidated income statements as interest income or interest expense, as applicable. In connection with these agreements and transactions, it is the policy of the Company to receive or pledge cash or securities to adequately collateralize such agreements and transactions in accordance with contractual agreements. The collateral is valued daily and the Company may require counterparties to deposit additional collateral or return collateral pledged. The carrying amounts of these agreements and transactions approximate fair value due to their short-term nature and the level of collateralization.

The Company pledges financial instruments owned to collateralize repurchase agreements. At December 31, 2019 and September 30, 2019, financial instruments owned, at fair value of $577.9 million and $478.8 million, respectively, were pledged as collateral under repurchase agreements. The counterparty has the right to sell or repledge the collateral in connection with these transactions. These financial instruments owned have been pledged as collateral and have been parenthetically disclosed on the condensed consolidated balance sheets.

In addition, as of December 31, 2019 and September 30, 2019, the Company pledged financial instruments owned, at fair value of $1,038.4 million and $1,228.9 million, respectively, to cover collateral requirements for tri-party repurchase agreements. These securities have not been parenthetically disclosed on the condensed consolidated balance sheets since the counterparties do not have the right to sell or repledge the collateral. The Company also repledged securities received under reverse repurchase agreements of $1,372.8 million and $1,175.1 million, respectively, to cover collateral requirements for tri-party repurchase agreements.

The Company also has repledged securities borrowed and client securities held under custodial clearing arrangements to collateralize securities loaned agreements with a fair value of $1,403.0 million and $1,414.0 million as of December 31, 2019, and September 30, 2019, respectively. Additionally, the Company had also pledged financial instruments owned with a fair value of $21.5 million and zero as of December 31, 2019, and September 30, 2019, respectively, to collateralize uncommitted loan facilities with certain banks as discussed further in Note 11.

At December 31, 2019 and September 30, 2019, the Company had accepted collateral that it is permitted by contract to sell or repledge. This collateral consists primarily of securities received in reverse repurchase agreements, securities borrowed agreements, and margin securities held on behalf of correspondent brokers. The fair value of such collateral at December 31, 2019 and September 30, 2019, was $3,180.7 million and $3,060.2 million, respectively, of which $268.0 million and $329.8 million, respectively, was used to cover securities sold short which are recorded in financial instruments sold, not yet purchased on the condensed consolidated balance sheets. In the normal course of business, this collateral is used by the Company to cover financial instruments sold, not yet purchased, to obtain financing in the form of repurchase agreements, and to meet counterparties’ needs under lending arrangement and matched-booked trading strategies.

The following tables provide the contractual maturities of gross obligations under repurchase and securities lending agreements as of December 31, 2019 and September 30, 2019 (in millions):



	December 31, 2019
	Overnight and Open		Less than 30 Days		30-90 Days		Total
Securities sold under agreements to repurchase	$	1,339.9	$	826.3	$	765.4	$	2,931.6
Securities loaned	1,430.8		—		—		1,430.8
Gross amount of secured financing	$	2,770.7	$	826.3	$	765.4	$	4,362.4



	September 30, 2019
	Overnight and Open		Less than 30 Days		30-90 Days		Total
Securities sold under agreements to repurchase	$	1,553.9	$	565.8	$	654.0	$	2,773.7
Securities loaned	1,459.9		—		—		1,459.9
Gross amount of secured financing	$	3,013.8	$	565.8	$	654.0	$	4,233.6

The following table provides the underlying collateral types of the gross obligations under repurchase and securities lending agreements as of December 31, 2019 and September 30, 2019 (in millions):



Securities sold under agreements to repurchase	December 31, 2019		September 30, 2019
U.S. Treasury obligations	$	35.3	$	108.8
U.S. government agency obligations	263.0		359.5
Asset-backed obligations	84.5		96.7
Agency mortgage-backed obligations	2,548.8		2,208.7
Total securities sold under agreement to repurchase	2,931.6		2,773.7

Securities loaned
Equity securities	1,430.8		1,459.9
Total securities loaned	1,430.8		1,459.9
Gross amount of secured financing	$	4,362.4	$	4,233.6

The following tables provide the netting of securities purchased under agreements to resell, securities sold under agreements to repurchase, securities borrowed and securities loaned as of the periods indicated (in millions):



	December 31, 2019
Offsetting of collateralized transactions:	Gross Amounts Recognized		Amounts Offset in the Condensed Consolidated Balance Sheet			Net Amounts Presented in the Condensed Consolidated Balance Sheet
Securities purchased under agreements to resell	$	1,609.6	$	(6.5	)	$	1,603.1
Securities borrowed	$	1,427.7	$	—		$	1,427.7
Securities sold under agreements to repurchase	$	2,938.1	$	(6.5	)	$	2,931.6
Securities loaned	$	1,430.8	$	—		$	1,430.8



	September 30, 2019
Offsetting of collateralized transactions:	Gross Amounts Recognized		Amounts Offset in the Condensed Consolidated Balance Sheet			Net Amounts Presented in the Condensed Consolidated Balance Sheet
Securities purchased under agreements to resell	$	1,474.4	$	(49.9	)	$	1,424.5
Securities borrowed	$	1,423.2	$	—		$	1,423.2
Securities sold under agreements to repurchase	$	2,823.6	$	(49.9	)	$	2,773.7
Securities loaned	$	1,459.9	$	—		$	1,459.9