Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk (Tables)

9 Months Ended

Jun. 30, 2023

Financial Instruments with Off-Balance Sheet Risk and Concentrations of Credit Risk [Abstract]

Listed below are the fair values of the Company’s derivative assets and liabilities as of June 30, 2023 and September 30, 2022. Assets represent net unrealized gains and liabilities represent net unrealized losses.


	June 30, 2023				September 30, 2022
(in millions)	Assets (1)		Liabilities (1)		Assets (1)		Liabilities (1)
Derivative contracts not accounted for as hedges:
Exchange-traded commodity derivatives	$	1,644.0	$	1,630.6	$	4,520.4	$	4,519.3
OTC commodity derivatives	1,865.3		1,790.4		756.9		695.6
Exchange-traded foreign exchange derivatives	2.4		2.4		25.6		25.7
OTC foreign exchange derivatives	756.3		726.5		577.1		549.3
Exchange-traded interest rate derivatives	1,835.3		1,840.2		2,626.8		2,626.7
OTC interest rate derivatives	343.4		343.4		168.9		205.1
Exchange-traded equity index derivatives	2,006.9		2,006.9		609.5		609.5
OTC equity and indices derivatives	176.7		85.8		164.4		95.7
TBA and forward settling securities	35.3		24.0		207.6		154.9
Subtotal	8,665.6		8,450.2		9,657.2		9,481.8
Derivative contracts designated as hedging instruments:
Interest rate contracts	—		37.6		—		48.8
Foreign currency forward contracts	7.5		—		—		21.8
Subtotal	7.5		37.6		—		70.6
Gross fair value of derivative contracts	$	8,673.1	$	8,487.8	$	9,657.2	$	9,552.4
Impact of netting and collateral	(8,519.4)		(8,374.5)		(10,920.8)		(10,505.0)
Total fair value included in Deposits with and receivables from broker-dealers, clearing organizations, and counterparties, net	$	(151.1)			$	(1,455.7)
Total fair value included in Receivables from clients, net	$	(0.1)			$	(0.5)
Total fair value included in Financial instruments owned, at fair value	$	304.9			$	192.6
Total fair value included in Payables to clients			$	(296.5)			$	(1,392.4)
Total fair value included in Payables to broker-dealers, clearing organizations and counterparties			$	3.2			$	55.8
Total fair value included in Financial instruments sold, not yet purchased, at fair value			$	406.6			$	384.0

(1)As of June 30, 2023 and September 30, 2022, the Company’s derivative contract volume for open positions was approximately 12.8 million and 13.3 million contracts, respectively.

Schedule of Fair Value of Derivative Instruments Designated for Hedging

The fair values of derivative instruments designated for hedging held as of June 30, 2023 and September 30, 2022 are as follow:


		June 30, 2023		September 30, 2022
(in millions)	Balance Sheet Location	Fair Value		Fair Value
Asset Derivatives
Derivatives designated as hedging instruments:

Foreign currency forward contracts	Financial instruments owned, net	$	7.5	$	—
Total derivatives designated as hedging instruments		$	7.5	$	—

Derivative assets expected to be released from Other comprehensive income into current earnings:

Foreign currency forward contracts		$	5.2	$	—
Total expected to be released from Other comprehensive income into earnings		$	5.2	$	—

Liability Derivatives
Derivatives designated as hedging instruments:
Interest rate contracts	Financial instruments sold, not yet purchased	$	37.6	$	48.8
Foreign currency forward contracts	Financial instruments sold, not yet purchased	—		21.8
Total derivatives designated as hedging instruments		$	37.6	$	70.6

Derivative liabilities expected to be released from Other comprehensive income into current earnings:
Interest rate contracts		$	23.2	$	9.7
Foreign currency forward contracts		—		8.9
Total expected to be released from Other comprehensive income into earnings		$	23.2	$	18.6

Schedule of Notional Amounts of Outstanding Derivative Positions

The notional values of derivative instruments designated for hedging held as of June 30, 2023 and September 30, 2022 are as follow:


	June 30, 2023		September 30, 2022
(in millions)	Notional Value		Notional Value
Derivatives designated as hedging instruments:
Interest rate contracts	$	2,000.0	$	1,500.0
Foreign currency forward contracts:
Foreign currency forward contracts to purchase Polish Zloty:
Local currency	zł	156.1	zł	—
USD	$	33.7	$	—
Foreign currency forward contracts to purchase British Pound Sterling:
Local currency	£	168.0	£	168.0
USD	$	207.2	$	207.3

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The Condensed Consolidated Income Statement effects of derivative instruments designated for hedging held for the three and nine months ended June 30, 2023 and 2022 are as follows:


(in millions)	Income Statement Location	Three Months Ended June 30, 2023		Nine Months Ended June 30, 2023
Total amounts in income related to hedges
Interest rate contracts	Interest income	$	(14.3)	$	(31.3)
Foreign currency forward contracts	Compensation and benefits	1.6		2.1
Total derivatives designated as hedging instruments		$	(12.7)	$	(29.2)

Loss on cash flow hedging relationships:
Amount of loss reclassified from accumulated other comprehensive income into income		$	(12.7)	$	(29.2)
Amount of gain reclassified from accumulated other comprehensive income into income as a result of a forecasted transaction that is no longer probable of occurring		$	—	$	—


(in millions)	Income Statement Location	Three Months Ended June 30, 2022		Nine Months Ended June 30, 2022
Total amounts in income related to hedges
Interest rate contracts	Interest Income	$	0.1	$	1.8
Total derivatives designated as hedging instruments		$	0.1	$	1.8

Gain on cash flow hedging relationships:
Amount of gain reclassified from accumulated other comprehensive income into income		$	0.1	$	1.8
Amount of gain reclassified from accumulated other comprehensive income into income as a result of a forecasted transaction that is no longer probable of occurring		$	—	$	—

The following table sets forth the Company’s net gains/(losses) related to derivative financial instruments for the three and nine months ended June 30, 2023 and 2022 in accordance with the Derivatives and Hedging Topic of the ASC. The net gains/(losses) set forth below are included in Principal gains, net and Cost of sales of physical commodities in the Condensed Consolidated Income Statements.


	Three Months Ended June 30,				Nine Months Ended June 30,
(in millions)	2023		2022		2023		2022
Commodities	$	105.3	$	69.9	$	307.3	$	218.8
Foreign exchange	(10.8)		47.5		(34.8)		127.2

Interest rate, equities, and indices	51.6		29.5		85.5		82.3
TBA and forward settling securities	42.0		66.2		4.9		158.2
Net gains from derivative contracts	$	188.1	$	213.1	$	362.9	$	586.5

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income

The accumulated other comprehensive income effects of derivative instruments designated for hedging held for three and nine months ended June 30, 2023 and 2022 are as follow:


	Three Months Ended June 30, 2023
(in millions)	Amount of Gain/(Loss) Recognized in Other Comprehensive Income on Derivatives, net of tax		Location of amount Reclassified from Accumulated Other Comprehensive Income into Income	Amount Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives in Cash Flow Hedging Relationships:
Interest rate contracts	$	(0.7)	Interest Income	$	(14.3)
Foreign currency forward contracts	3.3		Compensation and benefits	1.6
Total	$	2.6		$	(12.7)


	Nine Months Ended June 30, 2023
(in millions)	Amount of Gain Recognized in Other Comprehensive Income on Derivatives, net of tax		Location of Gain Reclassified from Accumulated Other Comprehensive Income into Income	Amount Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives in Cash Flow Hedging Relationships:
Interest rate contracts	$	8.5	Interest Income	$	(31.3)
Foreign currency forward contracts	23.1		Compensation and benefits	2.1
Total	$	31.6		$	(29.2)


	Three Months Ended June 30, 2022
(in millions)	Amount of Gain/(loss) Recognized in Other Comprehensive Income on Derivatives, net of tax		Location of amount Reclassified from Accumulated Other Comprehensive Income into Income	Amount Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives in Cash Flow Hedging Relationships:
Interest rate contracts	$	6.8	Interest Income	$	0.1
Total	$	6.8		$	0.1


	Nine Months Ended June 30, 2022
(in millions)	Amount of Loss Recognized in Other Comprehensive Income on Derivatives, net of tax		Location of Gain Reclassified from Accumulated Other Comprehensive Income into Income	Amount of Gain Reclassified from Accumulated Other Comprehensive Income into Income
Derivatives in Cash Flow Hedging Relationships:
Interest rate contracts	$	25.0	Interest Income	$	1.8
Total	$	25.0		$	1.8

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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