Collateralized Transactions

6 Months Ended

Jun. 30, 2023

Broker-Dealer [Abstract]

Collateralized Transactions

Collateralized Transactions

Repurchase Agreements

Securities sold under Repurchase Agreements are accounted for as collateralized financing transactions and are recorded at the contractual amount for which the securities will be repurchased, including accrued interest. As of both June 30, 2023, and December 31, 2022, the Company had not facilitated any Repurchase Agreements.

Reverse Repurchase Agreements

Securities purchased under Reverse Repurchase Agreements are accounted for as collateralized financing transactions and are recorded at the contractual amount for which the securities will be 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 June 30, 2023, Cantor facilitated Reverse Repurchase Agreements on behalf of the Company, and consequently the Company had $200.0 million of Reverse Repurchase Agreements outstanding with Cantor. The Company had received, as collateral, U.S. Treasury or other fixed income securities with a fair value of $200.0 million, all of which pertained to overnight Reverse Repurchase Agreements that were transacted as part of the Company’s cash management strategy.

As of December 31, 2022, the Company had no Reverse Repurchase Agreements.