Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Valuation of Company's Assets and Liabilities Measured at Fair Value

The following table summarizes the valuation of the Company’s assets and liabilities measured at fair value as categorized based on the hierarchy described in Note 2:

	Level 1		Level 2		Level 3		Total
	(In thousands)
As of June 30, 2022
Assets
Money market funds	$	12,275	$	—	$	—	$	12,275
Trading securities
U.S. Treasuries		—		24,438		—		24,438
Mutual funds held in rabbi trust		—		9,859		—		9,859
Total assets	$	12,275	$	34,297	$	—	$	46,572
Liabilities
Contingent consideration payable	$	—	$	—	$	12,121	$	12,121
As of December 31, 2021
Assets
Money market funds	$	14,206	$	—	$	—	$	14,206
Trading securities
U.S. Treasuries		—		24,883		—		24,883
Mutual funds held in rabbi trust		—		11,195		—		11,195
Total assets	$	14,206	$	36,078	$	—	$	50,284
Liabilities
Contingent consideration payable	$	—	$	—	$	41,090	$	41,090

Summary of the Change in the Company's Contingent Consideration Payable

The following table summarizes the change in the Company's Level 3 liabilities for the six months ended June 30, 2022:

	December 31, 2021		Payments			Unrealized (Gain)/Loss		Realized (Gain)/Loss			Foreign Currency Translation			June 30, 2022
	(In thousands)
Contingent consideration payable	$	41,090	$	(26,164	)	$	313	$	(1,769	)	$	(1,349	)	$	12,121

The table below presents the range and average significant unobservable inputs used in the valuation of the Company's Level 3 liabilities:

	Valuation Technique	Unobservable Inputs	Range	Average
	($ in thousands)
As of June 30, 2022
Contingent consideration payable	Discounted cash flows	Present value factor	0.97		0.97
		April 2022-March 2023 variable fee	$3,556 - $5,658	$4,607
		Percentage of electronic trading volume	86.0% - 96.6%	91.3%
As of December 31, 2021
Contingent consideration payable	Discounted cash flows	Present value factor	0.95 - 1		0.98
		Customer retention rate	84.0%	84.0%
		April 2021-March 2022 variable fee	$2,703 - $3,086	$2,895
		Percentage of electronic trading volume	86.0% - 96.6%	91.3%

Carrying Value of Financial Asset and Liability Not Measured at Fair Value

The table below presents the carrying value, fair value and fair value hierarchy category of the Company's financial assets and liabilities that are not measured at fair value on the Consolidated Statement of Financial Condition. The carrying values of the Company's financial assets and liabilities not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximate fair value due to the short-term nature of the underlying assets and liabilities.

	Carrying Value		Fair Value		Level 1		Level 2		Level 3		Total
	(In thousands)
As of June 30, 2022
Financial assets not measured at fair value:
Cash and cash equivalents	$	290,544	$	290,544	$	290,544	$	—	$	—	$	290,544
Cash segregated under federal regulations		50,276		50,276		50,276		—		—		50,276
Accounts receivable, net of allowance		87,475		87,475		—		87,475		—		87,475
Receivables from broker-dealers, clearing organizations and customers		617,817		617,817		87,962		529,855		—		617,817
Total	$	1,046,112	$	1,046,112	$	428,782	$	617,330	$	—	$	1,046,112
Financial liabilities not measured at fair value:
Payables to broker-dealers, clearing organizations and customers	$	375,211	$	375,211	$	—	$	375,211	$	—	$	375,211
As of December 31, 2021
Financial assets not measured at fair value:
Cash and cash equivalents	$	506,735	$	506,735	$	506,735	$	—	$	—	$	506,735
Cash segregated under federal regulations		50,159		50,159		50,159		—		—		50,159
Accounts receivable, net of allowance		63,881		63,881		—		63,881		—		63,881
Receivables from broker-dealers, clearing organizations and customers		408,346		408,346		68,565		339,781		—		408,346
Total	$	1,029,121	$	1,029,121	$	625,459	$	403,662	$	—	$	1,029,121
Financial liabilities not measured at fair value:
Payables to broker-dealers, clearing organizations and customers	$	229,325	$	229,325	$	—	$	229,325	$	—	$	229,325

Summary of Company's Investments

The following table summarizes the Company’s investments:

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
	(In thousands)
As of June 30, 2022
Trading securities
U.S. Treasuries	$	24,883	$	—	$	(445	)	$	24,438
Mutual funds held in rabbi trust		11,981		—		(2,122	)		9,859
Total investments	$	36,864	$	—	$	(2,567	)	$	34,297
As of December 31, 2021
Trading securities
U.S. Treasuries	$	24,994	$	—	$	(111	)	$	24,883
Mutual funds held in rabbi trust		9,941		1,254		—			11,195
Total investments	$	34,935	$	1,254	$	(111	)	$	36,078

Summary of Fair Value of Investments Based upon Contractual Maturities

The following table summarizes the fair value of the investments based upon the contractual maturities:

	As of
	June 30, 2022		December 31, 2021
	(In thousands)
Less than one year	$	34,297	$	11,195
Due in 1 - 5 years		—		24,883
Total	$	34,297	$	36,078