(9) Receivables and Payables

Receivables from, and Payables to, Brokers, Dealers and Clearing Organizations

The following is a summary of receivables from, and payables to, brokers, dealers and clearing organizations (dollars in thousands):

	Receivables from						Payables to
	June 30, 2016			December 31, 2015			June 30, 2016		December 31, 2015
Broker-dealers	$	367,611		$	167,514		$	153,157	$	64,763
Clearing organizations	3,982			3,480			30,626		7,644
Securities borrowed	12,542			866,520			—		—
Securities loaned	—			—			75,011		888,152
Allowance for doubtful accounts	(356		)	(737		)	—		—

Total	$	383,779		$	1,036,777		$	258,794	$	960,559

Receivables from, and Payables to, Customers

The following is a summary of receivables from, and payables to, customers (dollars in thousands):

	Receivables from						Payables to
	June 30, 2016			December 31, 2015			June 30, 2016		December 31, 2015
Customers	$	175,131		$	49,688		$	73,933	$	9,957
Allowance for doubtful accounts	(520		)	(512		)	—		—

Net	$	174,611		$	49,176		$	73,933	$	9,957

Securities Borrowed and Loaned

In the second quarter 2016, the Company closed its U.S. matched-book securities lending operations. At June 30, 2016, the only remaining balances for securities borrowed and securities loaned related to customer settlement activities. The gross amounts of interest earned on cash provided to counterparties as collateral for securities borrowed, and interest incurred on cash received from counterparties as collateral for securities loaned through the wind-down of all balances within the U.S. matched-book operations, and the resulting net amount included in other revenue on the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2016 and 2015, respectively, were as follows (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Interest earned	$	448		$	1,451		$	2,080		$	2,859
Interest incurred	(185		)	(1,080		)	(1,251		)	(2,126		)

Net	$	263		$	371		$	829		$	733

Deposits paid for securities borrowed and deposits received for securities loaned are recorded at the amount of cash collateral advanced or received. Deposits paid for securities borrowed transactions require the Company to deposit cash with the lender. With respect to deposits received for securities loaned, the Company receives collateral in the form of cash in an amount generally in excess of the market value of the securities loaned. The Company monitors the market value of the securities borrowed and loaned on a daily basis, with additional collateral obtained or refunded, as necessary.

The Company’s securities borrowing and lending is generally done under industry standard agreements (“Master Securities Lending Agreements”) that may allow, following an event of default by either party, the prompt close-out of all transactions (including the liquidation of securities held) and the offsetting of obligations to return cash or securities, as the case may be, by the non-defaulting party. Events of default under the Master Securities Lending Agreements generally include, subject to certain conditions: (i) failure to timely deliver cash or securities as required under the transaction, (ii) a party’s insolvency, bankruptcy, or similar proceeding, (iii) breach of representation, and (iv) a material breach of the agreement. The counterparty that receives the securities in these transactions generally has unrestricted access in its use of the securities. For financial statement purposes, the Company does not offset securities borrowed and securities loaned.

The following table summarizes the transactions under certain Master Securities Lending Agreements that may be eligible for offsetting if an event of default occurred and a right of offset was legally enforceable (dollars in thousands):

	Gross Amounts of Recognized Assets/ (Liabilities)			Gross Amounts Offset in the Consolidated Statement of Financial Condition		Net Amounts Presented in the Consolidated Statement of Financial Condition			Collateral Received or Pledged (including Cash)			Net Amount
As of June 30, 2016:
Deposits paid for securities borrowed	$	12,542		$	—	$	12,542		$	12,542		$	—
Deposits received for securities loaned	(75,011		)	—		(75,011		)	(74,899		)	(112		)
As of December 31, 2015:
Deposits paid for securities borrowed	$	866,520		$	—	$	866,520		$	866,520		$	—
Deposits received for securities loaned	(888,152		)	—		(888,152		)	(868,843		)	(19,309		)