Collateralized Transactions

3 Months Ended

Feb. 29, 2024

Collateralized Transactions [Abstract]

Our repurchase agreements and securities borrowing and lending arrangements are generally recorded at cost in our Consolidated Statements of Financial Condition, which is a reasonable approximation of their fair values due to their short-term nature. We enter into secured borrowing and lending arrangements to obtain collateral necessary to effect settlement, finance inventory positions, meet customer needs or re-lend as part of our dealer operations. We monitor the fair value of the securities loaned and borrowed on a daily basis as compared with the related payable or receivable, and request additional collateral or return excess collateral, as appropriate. We pledge financial instruments as collateral under repurchase agreements, securities lending agreements and other secured arrangements, including clearing arrangements. Our agreements with counterparties generally contain contractual provisions allowing the counterparty the right to sell or repledge the collateral. Pledged securities owned that can be sold or repledged by the counterparty are included in Financial instruments owned, at fair value, and noted parenthetically as Securities pledged in our Consolidated Statements of Financial Condition.

In instances where we receive securities as collateral in connection with securities-for-securities transactions in which we are the lender of securities and are permitted to sell or repledge the securities received as collateral, we report the fair value of the collateral received and the related obligation to return the collateral in our Consolidated Statements of Financial Condition.

The following tables set forth the carrying value of securities lending arrangements, repurchase agreements and obligation to return securities received as collateral, at fair value by class of collateral pledged (in thousands):


	February 29, 2024
	Securities Lending Arrangements		Repurchase Agreements		Obligation to Return Securities Received as Collateral, at Fair Value		Total
Collateral Pledged:

Corporate equity securities	$	2,056,981	$	568,495	$	49,890	$	2,675,366
Corporate debt securities	579,817		5,047,768		—		5,627,585
Mortgage-backed and asset-backed securities	—		1,364,689		—		1,364,689
U.S. government and federal agency securities	45,930		7,107,197		1,736		7,154,863
Municipal securities	—		110,738		—		110,738
Sovereign obligations	26,442		2,265,539		59,271		2,351,252
Loans and other receivables	—		748,225		—		748,225
Total	$	2,709,170	$	17,212,651	$	110,897	$	20,032,718


	November 30, 2023
	Securities Lending Arrangements		Repurchase Agreements		Obligation to Return Securities Received as Collateral, at Fair Value		Total
Collateral Pledged:
Corporate equity securities	$	1,221,456	$	627,029	$	4,347	$	1,852,832
Corporate debt securities	576,449		4,297,933		—		4,874,382
Mortgage-backed and asset-backed securities	—		1,950,908		—		1,950,908
U.S. government and federal agency securities	39,151		9,474,205		3,429		9,516,785
Municipal securities	—		141,091		—		141,091
Sovereign obligations	3,462		2,511,560		1,024		2,516,046
Loans and other receivables	—		838,468		—		838,468
Total	$	1,840,518	$	19,841,194	$	8,800	$	21,690,512


	February 29, 2024
	Overnight and Continuous		Up to 30 Days		31-90 Days		Greater than 90 Days		Total
Securities lending arrangements	$	1,759,779	$	24,000	$	399,915	$	525,476	$	2,709,170
Repurchase agreements	7,615,647		2,897,392		2,755,338		3,944,274		17,212,651
Obligation to return securities received as collateral, at fair value	110,897		—		—		—		110,897
Total	$	9,486,323	$	2,921,392	$	3,155,253	$	4,469,750	$	20,032,718


	November 30, 2023
	Overnight and Continuous		Up to 30 Days		31-90 Days		Greater than 90 Days		Total
Securities lending arrangements	$	1,068,665	$	—	$	244,158	$	527,695	$	1,840,518
Repurchase agreements	10,548,263		2,442,446		1,939,891		4,910,594		19,841,194
Obligation to return securities received as collateral, at fair value	8,800		—		—		—		8,800
Total	$	11,625,728	$	2,442,446	$	2,184,049	$	5,438,289	$	21,690,512

We receive securities as collateral under resale agreements, securities borrowing transactions, customer margin loans, and in connection with securities-for-securities transactions in which we are the lender of securities. We also receive securities as initial margin on certain derivative transactions. In many instances, we are permitted by contract to rehypothecate the securities received as collateral. These securities may be used to secure repurchase agreements, enter into securities lending transactions, satisfy margin requirements on derivative transactions or cover short positions. At February 29, 2024 and November 30, 2023, the approximate fair value of securities received as collateral by us that may be sold or repledged was $34.42 billion and $33.99 billion, respectively. At February 29, 2024 and November 30, 2023, a substantial portion of the securities received by us had been sold or repledged.

Offsetting of Securities Financing Agreements

To manage our exposure to credit risk associated with securities financing transactions, we may enter into master netting agreements and collateral arrangements with counterparties. Generally, transactions are executed under standard industry agreements, including, but not limited to, master securities lending agreements (securities lending transactions) and master repurchase agreements (repurchase transactions). Refer to Note 2, Summary of Significant Accounting Policies in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended November 30, 2023 for further information regarding the offsetting of securities financing agreements.

The following tables provide information regarding repurchase agreements, securities borrowing and lending arrangements and securities received as collateral, at fair value, and obligation to return securities received as collateral, at fair value, that are recognized in our Consolidated Statements of Financial Condition and (1) the extent to which, under enforceable master netting arrangements, such balances are presented net in our Consolidated Statements of Financial Condition as appropriate under U.S. GAAP and (2) the extent to which other rights of setoff associated with these arrangements exist and could have an effect on our financial position (in thousands).


	February 29, 2024
	Gross Amounts		Netting in Consolidated Statement of Financial Condition		Net Amounts in Consolidated Statement of Financial Condition		Additional Amounts Available for Setoff (1)		Available Collateral (2)		Net Amount (3)
Assets:
Securities borrowing arrangements	$	6,789,055	$	—	$	6,789,055	$	(378,668)	$	(1,683,197)	$	4,727,190
Reverse repurchase agreements	13,162,658		(5,615,873)		7,546,785		(1,602,160)		(5,901,391)		43,234
Securities received as collateral, at fair value	110,897		—		110,897		—		(110,897)		—
Liabilities:
Securities lending arrangements	$	2,709,170	$	—	$	2,709,170	$	(378,668)	$	(2,293,154)	$	37,348
Repurchase agreements	17,212,651		(5,615,873)		11,596,778		(1,602,160)		(9,513,391)		481,227
Obligation to return securities received as collateral, at fair value	110,897		—		110,897		—		(110,897)		—


	November 30, 2023
	Gross Amounts		Netting in Consolidated Statement of Financial Condition		Net Amounts in Consolidated Statement of Financial Condition		Additional Amounts Available for Setoff (1)		Available Collateral (2)		Net Amount (4)
Assets:
Securities borrowing arrangements	$	7,192,091	$	—	$	7,192,091	$	(327,723)	$	(1,642,946)	$	5,221,422
Reverse repurchase agreements	14,871,137		(8,920,588)		5,950,549		(1,304,009)		(4,582,621)		63,919
Securities received as collateral, at fair value	8,800		—		8,800		—		(8,800)		—
Liabilities:
Securities lending arrangements	$	1,840,518	$	—	$	1,840,518	$	(327,723)	$	(1,396,069)	$	116,726
Repurchase agreements	19,841,194		(8,920,588)		10,920,606		(1,304,009)		(9,035,403)		581,194
Obligation to return securities received as collateral, at fair value	8,800		—		8,800		—		(8,800)		—

(1)Under master netting agreements with our counterparties, we have the legal right of offset with a counterparty, which incorporates all of the counterparty’s outstanding rights and obligations under the arrangement. These balances reflect additional credit risk mitigation that is available by a counterparty in the event of a counterparty’s default, but which are not netted in our Consolidated Statements of Financial Condition because other netting provisions of U.S. GAAP are not met.

(2)Includes securities received or paid under collateral arrangements with counterparties that could be liquidated in the event of a counterparty default and thus offset against a counterparty’s rights and obligations under the respective repurchase agreements or securities borrowing or lending arrangements.

(3)Includes $4.65 billion of securities borrowing arrangements for which we have received securities collateral of $4.52 billion, and $420.0 million of repurchase agreements for which we have pledged securities collateral of $439.2 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable.

(4)Includes $5.17 billion of securities borrowing arrangements for which we have received securities collateral of $5.04 billion, and $505.0 million of repurchase agreements for which we have pledged securities collateral of $520.4 million, which are subject to master netting agreements, but we have not determined the agreements to be legally enforceable.

Cash and Securities Segregated and on Deposit for Regulatory Purposes or Deposited with Clearing and Depository Organizations

Cash and securities segregated in accordance with regulatory regulations and deposited with clearing and depository organizations primarily consist of deposits in accordance with Rule 15c3-3 of the Securities Exchange Act of 1934, which subjects Jefferies LLC as a broker-dealer carrying customer accounts to requirements related to maintaining cash or qualified securities in segregated special reserve bank accounts for the exclusive benefit of its customers.

The following table summarizes assets segregated or held in separate accounts included in our Consolidated Statements of Financial Condition (in thousands):



	February 29, 2024		November 30, 2023
Cash and securities segregated and on deposit for regulatory purposes or deposited with clearing and depository organizations	$	1,195,346	$	1,414,593
Securities purchased under agreements to resell (1)	140,220		45,490
Total	$	1,335,566	$	1,460,083

(1)Includes U.S. Treasury securities segregated for the exclusive benefit of customers under SEC’s Rule 15c3-3.