Revenues from Contracts with Customers

9 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenues from Contracts with Customers

Revenues from Contracts with Customers

The following table presents the Company’s total revenues separated between revenues from contracts with customers and other sources of revenues (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenues from contracts with customers:
Commissions	$	367,016	$	352,027	$	1,192,004	$	1,190,522
Data, software, and post-trade	22,238		21,523		65,826		61,060
Fees from related parties	3,470		8,814		11,500		20,897
Other revenues	3,236		4,077		10,308		11,427
Total revenues from contracts with customers	395,960		386,441		1,279,638		1,283,906
Other sources of revenues:
Principal transactions	73,997		65,182		254,757		277,946
Interest and dividend income	3,042		2,418		17,535		13,115
Other revenues	748		1,001		1,843		2,368
Total revenues	$	473,747	$	455,042	$	1,553,773	$	1,577,335

As discussed in Note 1— “Organization and Basis of Presentation”, the Company adopted the new revenue recognition standard as of January 1, 2018. There was no significant impact to the Company’s unaudited condensed consolidated financial statements for the periods presented as a result of applying the new revenue recognition standard.

Refer to Note 3— “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 December 31, 2020 for detailed information on the recognition of the Company’s revenues from contracts with customers.

Disaggregation of Revenue

Refer to Note 23—“Segment, Geographic and Product Information,” for a further discussion on the allocation of revenues to geographic regions.

Contract Balances

The timing of our revenue recognition may differ from the timing of payment by our customers. The Company records a receivable when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied.

The Company had receivables related to revenues from contracts with customers of $322.3 million, which excludes $497.8 million of receivables classified as Assets held for sale, at September 30, 2021. The Company had receivables related to revenues from contracts with customers of $629.4 million at December 31, 2020. The Company had no impairments related to these receivables during the three and nine months ended September 30, 2021 and 2020.

The Company’s deferred revenue primarily relates to customers paying in advance or billed in advance where the performance obligation has not yet been satisfied. Deferred revenue at September 30, 2021 and December 31, 2020 was $9.2 million and $15.0 million, respectively. At September 30, 2021, the Company reclassified $5.9 million of deferred revenue as Liabilities held for sale.

During the three months ended September 30, 2021 and 2020, the Company recognized revenue of $7.4 million and $7.1 million, respectively, that was recorded as deferred revenue at the beginning of the period. During the nine months ended September 30, 2021 and 2020, the Company recognized revenue of $9.0 million and $8.0 million, respectively, that was recorded as deferred revenue at the beginning of the period.

Contract Costs

The Company capitalizes costs to fulfill contracts associated with different lines of its business where the revenue is recognized at a point in time and the costs are determined to be recoverable. Capitalized costs to fulfill a contract are recognized at the point in time that the related revenue is recognized.

The Company did not have any capitalized costs to fulfill a contract as of September 30, 2021. At December 31, 2020, there were $1.7 million of capitalized costs recognized to fulfill a contract. At September 30, 2021, the Company reclassified $1.7 million of capitalized costs recognized to fulfill a contract as Assets held for sale.