Fair Value (Tables)

3 Months Ended

Mar. 31, 2017

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

Valuation of our financial instruments by pricing observability levels as of March 31, 2017 and December 31, 2016 was as follows (in thousands):



	Level 1		Level 2		Level 3		Total
March 31, 2017:
Money markets	$	138,734	$	—	$	—	$	138,734
U.S. Treasury Bills	—		1,206,774		—		1,206,774
Trading
Equity securities	146,122		9,980		112		156,214
Fixed income securities	78,892		11,244		—		90,136
Long exchange-traded options	1,558		—		—		1,558
Derivatives	536		7,232		—		7,768
Private equity	—		—		4,914		4,914
Available-for-sale	64		—		—		64
Total assets measured at fair value	$	365,906	$	1,235,230	$	5,026	$	1,606,162

Securities sold not yet purchased
Short equities – corporate	$	14,921	$	—	$	—	$	14,921
Short exchange-traded options	916		—		—		916
Derivatives	1,909		8,438		—		10,347
Contingent payment arrangements	—		—		17,177		17,177
Total liabilities measured at fair value	$	17,746	$	8,438	$	17,177	$	43,361

December 31, 2016:
Money markets	$	107,250	$	—	$	—	$	107,250
U.S. Treasury Bills	—		922,126		—		922,126
Trading
Equity securities	148,128		5,724		110		153,962
Fixed income securities	80,473		11,107		—		91,580
Long exchange-traded options	3,106		—		—		3,106
Derivatives	1,224		7,189		—		8,413
Private equity	—		—		4,913		4,913
Available-for-sale	45		—		—		45
Total assets measured at fair value	$	340,226	$	946,146	$	5,023	$	1,291,395

Securities sold not yet purchased
Short equities – corporate	$	40,252	$	—	$	—	$	40,252
Short exchange-traded options	692		—		—		692
Derivatives	1,092		7,557		—		8,649
Contingent payment arrangements	—		—		17,589		17,589
Total liabilities measured at fair value	$	42,036	$	7,557	$	17,589	$	67,182

Schedule of Change in Carrying Value Level 3 Financial Instruments

The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as private equity and trading equity securities, is as follows:



		Three Months Ended March 31,
		2017		2016
	(in thousands)

Balance as of beginning of period		$	5,023	$	16,148
Reclassification (see below)		—		(9,532		)
Purchases		—		—
Sales		—		—
Realized gains (losses), net		—		—
Unrealized gains (losses), net		3		(11		)
Balance as of end of period		$	5,026	$	6,605

Schedule of Contingent Payment Arrangements Level 3 Financial Instruments

The change in carrying value associated with Level 3 financial instruments carried at fair value, classified as contingent payment arrangements, is as follows:



		Three Months Ended March 31,
		2017			2016
	(in thousands)

Balance as of beginning of period		$	17,589		$	31,399
Accretion		178			353
Payments		(590		)	(633		)
Balance as of end of period		$	17,177		$	31,119