Current Expected Credit Losses

12 Months Ended

Dec. 31, 2023

Credit Loss [Abstract]

Current Expected Credit Losses

Current Expected Credit Losses

The CECL reserve reflects management’s current estimate of potential credit losses related to the receivable balances included in the Company’s Consolidated Statements of Financial Condition. See Note 3—“Summary of Significant Accounting Policies” for further discussion of the CECL reserve methodology.

As required, any subsequent changes to the CECL reserve are recognized in “Net income (loss) available to common stockholders” in the Company’s Consolidated Statements of Operations. During the years ended December 31, 2023, 2022 and 2021, the Company recorded changes in the CECL reserve as follows (in millions):

	Accrued commissions and other receivables, net		Loans, forgivable loans and other receivables from employees and partners, net		Receivables from broker-dealers, clearing organizations, customers and related broker-dealers		Total
Beginning balance, January 1, 2021	$	1.0	$	1.6	$	—	$	2.6
Current-period provision for expected credit losses	(0.3)		0.1		—		(0.2)
Ending balance, December 31, 2021	0.7		1.7		—		2.4
Current-period provision for expected credit losses	4.7		0.8		7.0		12.5
Ending balance, December 31, 2022	5.4		2.5		7.0		14.9
Current-period provision for expected credit losses	(0.4)		(0.2)		11.9		11.3
Ending balance, December 31, 2023	$	5.0	$	2.3	$	18.9	$	26.2

For the year ended December 31, 2023, there was a decrease of $0.4 million in the CECL reserve against “Accrued commissions and other receivables, net” due to the updated macroeconomic assumptions, bringing the CECL reserve recorded pertaining to “Accrued commissions and other receivables, net” to $5.0 million as of December 31, 2023. For the year ended December 31, 2022, there was an increase of $4.7 million in the CECL reserve against “Accrued commissions and other receivables, net,” which included a $4.5 million reserve related to Russia’s Invasion of Ukraine. For the year ended December 31, 2021, there was a decrease of $0.3 million in the CECL reserve against “Accrued commissions and other receivables, net.”

For the year ended December 31, 2023, there was a decrease of $0.2 million in the CECL reserve pertaining to “Loans, forgivable loans and other receivables from employees and partners, net” as a result of employee collections, bringing the CECL reserve recorded pertaining to “Loans, forgivable loans and other receivables from employees and partners, net” to $2.3 million as of December 31, 2023. For the years ended December 31, 2022 and 2021, there were increases of $0.8 million and $0.1 million, respectively, in the CECL reserve pertaining to “Loans, forgivable loans and other receivables from employees and partners, net” as a result of employee terminations.

For the year ended December 31, 2023, there was an increase of $11.9 million in the CECL reserve against “Receivables from broker-dealers, clearing organizations, customers and related broker-dealers” which mainly reflected the downward credit rating migration of certain unsettled trades related to Russia’s Invasion of Ukraine, bringing the CECL reserve recorded pertaining to “Receivables from broker-dealers, clearing organizations, customers and related broker-dealers” to $18.9 million as of December 31, 2023. For the year ended December 31, 2022, there was an increase of $7.0 million in the CECL reserve against “Receivables from broker-dealers, clearing organizations, customers and related broker-dealers” which reflected the downward credit rating migration of certain unsettled trades related to Russia’s Invasion of Ukraine. There was no change in the CECL reserve recorded pertaining to “Receivables from broker-dealers, clearing organizations, customers and related broker-dealers” for the year ended December 31, 2021.