Financial Instruments Owned And Pledged As Collateral At Fair Value, Securities Purchased Under Agreements To Resell And Securities Sold Under Agreements To Repurchase

6 Months Ended

Jun. 30, 2011

Financial Instruments Owned And Pledged As Collateral At Fair Value, Securities Purchased Under Agreements To Resell And Securities Sold Under Agreements To Repurchase

Financial Instruments Owned And Pledged As Collateral At Fair Value, Securities Purchased Under Agreements To Resell And Securities Sold Under Agreements To Repurchase

Note 8 – Financial Instruments Owned and Pledged as Collateral at Fair Value, Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase

The Company, through Protego Casa de Bolsa, S.A. de C.V. ("PCB"), enters into repurchase agreements with clients seeking overnight money market returns whereby PCB transfers to the clients Mexican government securities in exchange for cash and concurrently agrees to repurchase the securities at a future date for an amount equal to the cash exchanged plus a stipulated premium or interest factor. PCB deploys the cash received from, and acquires the securities deliverable to, clients under these repurchase arrangements by purchasing securities in the open market, which the Company reflects as Financial Instruments Owned and Pledged as Collateral at Fair Value on the Unaudited Condensed Consolidated Statements of Financial Condition, or by entering into reverse repurchase agreements with unrelated third parties. The Company accounts for these repurchase and reverse repurchase agreements as collateralized financing transactions, which are carried at their contract amounts, which approximate fair value given that the contracts generally mature the following business day. The Company records a liability on its Unaudited Condensed Consolidated Statements of Financial Condition in relation to repurchase transactions executed with clients as Securities Sold Under Agreements to Repurchase. The Company records as assets on its Unaudited Condensed Consolidated Statements of Financial Condition, Financial Instruments Owned and Pledged as Collateral at Fair Value (where the Company has acquired the securities deliverable to clients under these repurchase arrangements by purchasing securities in the open market) and Securities Purchased Under Agreements to Resell (where the Company has acquired the securities deliverable to clients under these repurchase agreements by entering into reverse repurchase agreements with unrelated third parties). These Mexican government securities have an estimated average time to maturity of approximately 2.7 years, as of June 30, 2011, and are pledged as collateral against repurchase agreements. Generally, collateral is posted equal to the contract value at inception and is subject to market changes. These repurchase agreements are primarily with institutional customer accounts managed by PCB which permit the counterparty to pledge the securities.

As of June 30, 2011 and December 31, 2010, a summary of the Company's assets, liabilities and collateral received or pledged related to these transactions was as follows:

	June 30, 2011						December 31, 2010
	Asset (Liability) Balance			Market Value of Collateral Received or (Pledged)			Asset (Liability) Balance			Market Value of Collateral Received or (Pledged)
Assets
Financial Instruments Owned and Pledged as Collateral at Fair Value	$	83,311					$	52,217
Securities Purchased Under Agreements to Resell		100,598		$	100,605			126,401		$	126,386
Total Assets	$	183,909					$	178,618
Liabilities
Securities Sold Under Agreements to Repurchase	$	(184,062	)	$	(184,202	)	$	(178,683	)	$	(178,603	)