Revenues from Contracts with Customers

9 Months Ended

Sep. 30, 2022

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,
	2022		2021		2022		2021
Revenues from contracts with customers:
Commissions	$	299,430	$	367,016	$	965,636	$	1,192,004
Data, software, and post-trade	23,808		22,238		71,326		65,826
Fees from related parties	3,896		3,470		10,838		11,500
Other revenues	4,299		3,236		10,101		10,308
Total revenues from contracts with customers	331,433		395,960		1,057,901		1,279,638
Other sources of revenues:
Principal transactions	79,568		73,997		283,338		254,757
Interest and dividend income	4,110		3,042		15,506		17,535
Other revenues	1,456		748		2,042		1,843
Total revenues	$	416,567	$	473,747	$	1,358,787	$	1,553,773

See 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, 2021 for detailed information on the recognition of the Company’s revenues from contracts with customers.

Disaggregation of Revenue

See Note 22—“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 $297.0 million and $296.4 million at September 30, 2022 and December 31, 2021, respectively. The Company had no impairments related to these receivables during the three and nine months ended September 30, 2022 and 2021.

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, 2022 and December 31, 2021 was $12.4 million and $9.2 million, respectively.

During the three months ended September 30, 2022 and 2021, the Company recognized revenue of $7.8 million and $7.4 million, respectively, that was recorded as deferred revenue at the beginning of the period. During the nine months ended September 30, 2022 and 2021, the Company recognized revenue of $8.7 million and $9.0 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, 2022 and December 31, 2021.