Related Party Transactions

6 Months Ended

May 31, 2022

Officers, Directors and Employees. The following sets forth information regarding related party transactions with our officers, directors and employees:

•At May 31, 2022 and November 30, 2021, we had $20.8 million and $23.1 million, respectively, of loans outstanding to certain of our officers and employees (none of whom are executive officers or directors) that are included in Other assets in our Consolidated Statements of Financial Condition.

•Receivables from and payables to customers include balances arising from officers’, directors’ and employees’ individual security transactions. These transactions are subject to the same regulations as all customer transactions and are provided on substantially the same terms.

See Note 7, Variable Interest Entities, and Note 15, Commitments, Contingencies and Guarantees, for further information regarding related party transactions with our officers, directors and employees.

Jefferies. The following is a description of our related party transactions with Jefferies and its affiliates:

•We provide services to and receive services from Jefferies under service agreements (in millions):




	Three Months Ended May 31,				Six Months Ended May 31,


	2022		2021		2022		2021
Charges to Jefferies for services provided	$	5.8	$	8.3	$	13.2	$	23.9
Charges from Jefferies for services received	2.9		8.5		8.0		18.4

•We also provide investment banking and capital markets services to Jefferies and its affiliates. The following table presents the revenues earned by type of services provided (in millions):




	Three Months Ended May 31,				Six Months Ended May 31,


	2022		2021		2022		2021
Investment banking	$	0.4	$	10.5	$	0.4	$	24.1
Commissions and other fees	0.3		0.2		0.6		0.5

•Receivables from and payables to Jefferies, included in Other assets and Accrued expenses and other liabilities, respectively, in our Consolidated Statements of Financial Condition (in millions):


	May 31, 2022		November 30, 2021
Receivable from Jefferies	$	0.5	$	0.3
Payable to Jefferies	4.9		10.9

•During the six months ended May 31, 2022, we paid distributions of $363.8 million to Jefferies, based on our results for the six months ended February 28, 2022. At May 31, 2022, we have accrued a distribution payable of $70.0 million, included in Accrued expenses and other liabilities, in our Consolidated Statements of Financial Condition, based on our results for the three months ended May 31, 2022.

•Pursuant to a tax sharing agreement entered into between us and Jefferies, payments are made between us and Jefferies to settle current tax receivables and payables. At May 31, 2022 and November 30, 2021, we had net current tax receivables from Jefferies of $80.1 million and $130.6 million, respectively, included in Other assets, in our Consolidated Statements of Financial Condition. In May 2022, we made a payment of $45.0 million to Jefferies, which increased the cumulative net current tax receivable.

•We purchase securities from and sell securities to Jefferies, at fair value (in millions). There were no gains or losses on these transactions.




	Three Months Ended May 31, 2021		Six Months Ended May 31, 2021
Securities purchased from Jefferies	$	8.0	$	17.1
Securities sold to Jefferies	—		0.5

•At May 31, 2022 and November 30, 2021, we have a payable to an entity of Jefferies totaling $0.9 million and $0.5 million, respectively, included in Payables—customers, in our Consolidated Statements of Financial Condition.

•In connection with foreign exchange contracts entered into under a prime brokerage agreement with an affiliate of Jefferies, we have $0.6 million and $0.7 million at May 31, 2022 and November 30, 2021, respectively, included in Payables—brokers, dealers and clearing organizations, in our Consolidated Statements of Financial Condition.

•We enter into OTC foreign exchange contracts with a subsidiary of Jefferies. Net gains (losses) relating to these contracts, which are included in Principal transactions revenues in our Consolidated Statements of Earnings, are as follows (in millions):




	Three Months Ended May 31, 2021		Six Months Ended May 31, 2021
Net gains on foreign exchange contracts	$	—	$	0.1

•In connection with our capital markets activities, from time to time we make a market in long-term debt securities of Jefferies (i.e., we buy and sell debt securities issued by Jefferies). At May 31, 2022 and November 30, 2021, approximately $3.0 million and $2.3 million, respectively, of debt issued by Jefferies is included in Financial instruments owned, at fair value, in our Consolidated Statements of Financial Condition.

•We have entered into an investment management agreement whereby Monashee provides asset management services to us for certain separately managed accounts. Our net investment balance in the separately managed accounts was $8.9 million and $13.6 million at May 31, 2022 and November 30, 2021, respectively, for which we recognized losses of $0.3 million and $2.4 million for the three and six months ended May 31, 2022, respectively, compared with losses of $2.5 million and $0.1 million for the three and six months ended May 31, 2021, respectively, which are recorded in Principal transactions revenues in our Consolidated Statement of Earnings. We also recorded management fees of $0.1 million and $0.3 million for the three and six months ended May 31, 2022, respectively, compared with $(0.2) million and $0.3 million for the three and six months ended May 31, 2021, respectively, which are included in Floor brokerage and clearing fees in our Consolidated Statements of Earnings.

•We owned limited partnership interests in certain Oak Hill managed funds of $4.4 million at May 31, 2022, which are measured at the NAV of the funds and included within Investments at fair value in Financial instruments owned, at fair value, in our Consolidated Statement of Financial Condition. Changes in the fair value of the investments in the funds are reported within Principal transactions revenues in our Consolidated Statement of Earnings.

•We have a sublease agreement with an affiliate of Jefferies for office space. Payments received from this affiliate for rent and other expenses are as follows (in millions):




	Three Months Ended May 31,				Six Months Ended May 31,


	2022		2021		2022		2021
Payments received	$	0.1	$	0.2	$	0.3	$	0.4

For information on transactions with our equity method investees, see Note 8, Investments.