Fair Value (Tables)

3 Months Ended

Mar. 31, 2020

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, 2020 and December 31, 2019 was as follows (in thousands):



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
March 31, 2020:
Money markets	$	123,767	$	—	$	—	$	—	$	—	$	123,767
Securities segregated (U.S. Treasury Bills)	—		2,012,198		—		—		—		2,012,198
Derivatives	1,505		31,061		—		—		—		32,566
Investments
Equity securities	136,573		17,589		118		159		—		154,439
Long exchange-traded options	36,783		—		—		—		—		36,783
Limited partnership hedge funds⁽²⁾	—		—		—		—		42,393		42,393
Time deposits⁽³⁾	—		—		—		—		17,303		17,303
Other investments	4,637		—		—		—		6,953		11,590
Total investments	177,993		17,589		118		159		66,649		262,508
Total assets measured at fair value	$	303,265	$	2,060,848	$	118	$	159	$	66,649	$	2,431,039

Securities sold not yet purchased
Short equities – corporate	$	11,745	$	—	$	—	$	—	$	—	$	11,745
Short exchange-traded options	15,884		—		—		—		—		15,884
Derivatives	4,895		35,161		—		—		—		40,056
Contingent payment arrangements	—		—		23,704		—		—		23,704
Total liabilities measured at fair value	$	32,524	$	35,161	$	23,704	$	—	$	—	$	91,389



	Level 1		Level 2		Level 3		NAV Expedient⁽¹⁾		Other		Total
December 31, 2019:
Money markets	$	126,401	$	—	$	—	$	—	$	—	$	126,401
Securities segregated (U.S. Treasury Bills)	—		1,094,866		—		—		—		1,094,866
Derivatives	939		12,552		—		—		—		13,491
Investments
Equity securities	170,946		8,952		119		314		—		180,331
Long exchange-traded options	6,931		—		—		—		—		6,931
Limited partnership hedge funds⁽²⁾	—		—		—		—		47,361		47,361
Time deposits⁽³⁾	—		—		—		—		18,281		18,281
Other investments	5,883		—		—		—		8,007		13,890
Total investments	183,760		8,952		119		314		73,649		266,794
Total assets measured at fair value	$	311,100	$	1,116,370	$	119	$	314	$	73,649	$	1,501,552

Securities sold not yet purchased
Short equities – corporate	$	17,809	$	—	$	—	$	—	$	—	$	17,809
Short exchange-traded options	12,348		—		—		—		—		12,348
Derivatives	871		18,388		—		—		—		19,259
Contingent payment arrangements	—		—		22,911		—		—		22,911
Total liabilities measured at fair value	$	31,028	$	18,388	$	22,911	$	—	$	—	$	72,327

⁽¹⁾Investments measured at fair value using NAV (or its equivalent) as a practical expedient.

⁽²⁾ Investments in equity method investees that are not measured at fair value in accordance with GAAP.

⁽³⁾ Investments carried at amortized cost that are not measured at fair value in accordance with GAAP.

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 equity securities, is as follows:



	Three Months Ended March 31,
	2020			2019
	(in thousands)
Balance as of beginning of period	$	119		$	142
Purchases	—			—
Sales	—			—
Realized gains (losses), net	—			—
Unrealized gains (losses), net	(1		)	(27		)
Balance as of end of period	$	118		$	115

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,
	2020		2019
	(in thousands)
Balance as of beginning of period	$	22,911	$	7,336
Addition	—		—
Accretion	793		54
Payments	—		—
Balance as of end of period	$	23,704	$	7,390