Securities and Commodity Financing Transactions

6 Months Ended

Mar. 31, 2023

Securities and Commodity Financing Transactions

The Company’s repurchase agreements and securities borrowing and lending arrangements are generally recorded at cost in the Condensed Consolidated Balance Sheets, which is a reasonable approximation of their fair values due to their short-term nature. Secured borrowing and lending arrangements are entered into to obtain collateral necessary to effect settlement, finance inventory positions, meet customer needs or re-lend as part of our dealer operations. The fair value of securities loaned and borrowed is monitored daily compared with the related payable or receivable, and additional collateral or returning excess collateral is requested, as appropriate. These arrangements may serve to limit credit risk resulting from our transactions with our counterparties. Financial instruments are pledged as collateral under repurchase agreements, securities lending agreements and other secured arrangements, including clearing arrangements. Agreements with counterparties generally contain contractual provisions allowing counterparties the right to sell or repledge collateral. Either the Company or its counterparties may require additional collateral. All collateral is held by the Company or a custodian.

The following tables set forth the carrying value of repurchase agreements, and securities lending agreements by remaining contractual maturity (in millions):


	March 31, 2023
	Overnight and Open		Less than 30 Days		30-90 Days		Over 90 Days		Total
Securities sold under agreements to repurchase	$	7,237.3	$	1,564.1	$	1,492.4	$	38.3	$	10,332.1
Securities loaned	764.5		—		—		—		764.5
Gross amount of secured financing	$	8,001.8	$	1,564.1	$	1,492.4	$	38.3	$	11,096.6


	September 30, 2022
	Overnight and Open		Less than 30 Days		30-90 Days		Over 90 Days		Total
Securities sold under agreements to repurchase	$	3,664.7	$	2,279.1	$	186.3	$	3.4	$	6,133.5
Securities loaned	1,189.5		—		—		—		1,189.5
Gross amount of secured financing	$	4,854.2	$	2,279.1	$	186.3	$	3.4	$	7,323.0

Offsetting of Collateralized Transactions

The following table sets forth the carrying value of repurchase agreements and securities lending agreements by class of collateral pledged (in millions):


Securities sold under agreements to repurchase	March 31, 2023		September 30, 2022
U.S. Treasury obligations	$	4,777.7	$	1,311.0
U.S. government agency obligations	476.0		604.1
Asset-backed obligations	54.8		178.0
Agency mortgage-backed obligations	4,651.0		3,762.5
Foreign government obligations	124.1		97.2
Corporate bonds	248.5		180.7
Total securities sold under agreement to repurchase	$	10,332.1	$	6,133.5

Securities loaned
Equity securities	$	764.5	$	1,189.5
Total securities loaned	764.5		1,189.5
Gross amount of secured financing	$	11,096.6	$	7,323.0

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):


	March 31, 2023
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	$	7,932.2	$	(5,309.0)	$	2,623.2
Securities borrowed	$	753.7	$	—	$	753.7
Securities sold under agreements to repurchase	$	10,332.1	$	(5,309.0)	$	5,023.1
Securities loaned	$	764.5	$	—	$	764.5


	September 30, 2022
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	$	4,609.9	$	(2,937.9)	$	1,672.0
Securities borrowed	$	1,209.8	$	—	$	1,209.8
Securities sold under agreements to repurchase	$	6,133.5	$	(2,937.9)	$	3,195.6
Securities loaned	$	1,189.5	$	—	$	1,189.5

The Company pledges securities owned as collateral in both tri-party and bilateral arrangements. Pledged securities under tri-party arrangements may not be repledged or sold by the Company’s counterparties, whereas bilaterally pledged securities may be. The approximate fair value of pledged securities that can be sold or repledged by the Company’s counterparties has been parenthetically disclosed on the Condensed Consolidated Balance Sheets.

The Company receives securities as collateral under reverse repurchase agreements, securities borrowed agreements, and margin securities held on behalf of counterparties. 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. Additional securities collateral is obtained as necessary to ensure such transactions are adequately collateralized. In many instances, the Company is permitted by contract to repledge the securities received as collateral, which may include pledges to cover collateral requirements for tri-party repurchase agreements.

The following table sets forth the carrying value of collateral pledged, received and repledged (in millions):


	March 31, 2023		September 30, 2022
Securities pledged or repledged to cover collateral requirements for tri-party arrangements	$	4,824.6	$	3,787.8
Securities received as collateral that may be repledged	$	8,832.5	$	5,836.1
Securities received as collateral that may be repledged covering securities sold short	$	2,005.2	$	1,615.3
Repledged securities borrowed and client securities held under custodial clearing arrangements to collateralize securities loaned agreements	$	754.9	$	1,146.0