Collateralized Transactions

3 Months Ended

Mar. 31, 2017

7.	Collateralized Transactions

Repurchase Agreements and Reverse Repurchase Agreements

Securities sold under agreement to repurchase (“Repurchase Agreements”) and Securities purchased under agreements to resell (“Reverse Repurchase Agreements”) are accounted for as collateralized financing transactions and are recorded at the contractual amount for which the securities will be repurchased or resold, including accrued interest.

For Reverse Repurchase Agreements, it is the Company’s policy to obtain possession of collateral with a market value equal to or in excess of the principal amount loaned under Reverse Repurchase Agreements. Collateral is valued daily and the Company may require counterparties to deposit additional collateral or return collateral pledged when appropriate.

As of March 31, 2017, Cantor facilitated Repurchase Agreements between the Company and Cantor in the amount of $4.9 million for the purpose of financing fails. U.S. Treasury or other fixed income securities were provided to Cantor as collateral for the fair value of the Repurchase Agreement.

As of December 31, 2016, Cantor facilitated Reverse Repurchase Agreements between the Company and Cantor in the amount of $54.7 million as part of the Company’s cash management strategy. U.S. Treasury or other fixed income securities were received from Cantor as collateral for the fair value of the Repurchase Agreement.

Securities Loaned

As of March 31, 2017, the Company had Securities loaned transactions of $87.3 million with CF&Co. The market value of the securities lent was $87.4 million. As of March 31, 2017, the cash collateral received from CF&Co bore interest rates ranging from 1.41% to 1.75%. As of December 31, 2016, the Company had no Securities loaned transactions. Securities loaned transactions are included in “Securities loaned” in the Company’s unaudited condensed consolidated statements of financial condition.