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Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2015

Items Measured at Fair Value On a Recurring Basis

The following tables set forth, by level within the fair value hierarchy, financial instruments, including long-term investments accounted for under ASC 820 as of December 31, 2015 and 2014, respectively. As required by ASC 820, assets and liabilities that are measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Items Measured at Fair Value on a Recurring Basis

	December 31, 2015		Level 1		Level 2		Level 3
Financial instruments owned, at fair value:
Financial instruments held for trading activities at broker-dealer subsidiary:
Marketable and non-public equity securities	$	13,221	$	5,586	$	—	$	7,635
Convertible and fixed income debt instruments		815		—		815		—
		14,036		5,586		815		7,635
Financial instruments held for investment activities:
Designated as trading:
Marketable and non-public equity securities		13,849		5,415		—		8,434
Warrants		436		—		—		436
		14,285		5,415		—		8,870
Total		28,321	$	11,001	$	815	$	16,505
Investment funds valued at net asset value⁽¹⁾		66,602
Total financial instruments owned, at fair value	$	94,923
Financial instruments sold, not yet purchased, at fair value:
Marketable and non-public equity securities	$	1,933	$	1,933	$	—	$	—
Convertible and fixed income debt instruments		1		—		1		—
Total	$	1,934	$	1,933	$	1	$	—

(1)

In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheets.

	December 31, 2014		Level 1		Level 2		Level 3
Financial instruments owned, at fair value:
Financial instruments held for trading activities at broker-dealer subsidiary:
Marketable and non-public equity securities	$	14,832	$	14,758	$	—	$	74
Listed options		2		2		—		—
Convertible and fixed income debt instruments		42,864		—		42,864		—
		57,698		14,760		42,864		74
Financial instruments held for investment activities:
Designated as trading:
Marketable and non-public equity securities		2,325		175		—		2,150
Warrants		964		—		—		964
Designated as available-for-sale:
Marketable equity securities		172		172		—		—
		3,461		347		—		3,114
Total		61,159	$	15,107	$	42,864	$	3,188
Investment funds valued at net asset value⁽¹⁾		104,888
Total financial instruments owned, at fair value	$	166,047
Financial instruments sold, not yet purchased, at fair value:
U.S. Treasury securities	$	84,950	$	84,950	$	—	$	—
Marketable and non-public equity securities		34,043		34,043		—		—
Convertible and fixed income debt instruments		2,317		—		2,317		—
Total	$	121,310	$	118,993	$	2,317	$	—

(1)

Valuation Technique and Unobservable Inputs

The following table provides the valuation technique and unobservable inputs primarily used in assessing the value of these securities as of December 31, 2015:

Valuation Technique	Fair Value		Unobservable Input	Range		Weighted Average
Market approach—assets	$	16,069	Over-the-counter trading activity	$0 - $14.10/share		$11.13
Black-Scholes—assets	$	436	Volatility		30%		30%
			Dividend Yield		0%		0%
			Interest Rate		1.9%		1.9%

The following table provides the valuation technique and unobservable inputs primarily used in assessing the value of these securities as of December 31, 2014:

Valuation Technique	Fair Value		Unobservable Input	Range		Weighted Average
Market approach—assets	$	2,224	Over-the-counter trading activity	$ 0 - $34.00/share		$11.56
Black-Scholes—assets	$	964	Volatility		30%		30%
			Dividend Yield		0%		0%
			Interest Rate		2.1%		2.1%

Changes in Fair Value of Company's Level 3 Financial Assets and Liabilities Measured on Recurring Basis

The tables below set forth a summary of changes in the fair value of the Company’s Level 3 financial assets and liabilities that are measured at fair value on a recurring basis for the years ended December 31, 2015 and 2014. As of December 31, 2015 and 2014, the Company did not have any net unrealized gains (losses) included in accumulated other comprehensive income on Level 3 financial assets:

	Year Ended December 31,			Year Ended December 31,
	2015			2014
	Trading Securities			Trading Securities			Financial Instruments Sold, not yet Purchased
Beginning balance, January 1,	$	3,188		$	11,535		$	(1,499	)
Total net losses (realized/unrealized) included in earnings		(332	)		(254	)		(122	)
Purchases		75,173			124,223			6,043
Sales/distributions		(61,495	)		(126,067	)		(4,422	)
Transfers out of Level 3		(29	)		(6,249	)		—
Ending balance, December 31,	$	16,505		$	3,188		$	—
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date	$	(631	)	$	266		$	—

Gains (Losses) from Level 3 Financial Assets and Liabilities Measured on Recurring Basis

Gains and losses from Level 3 financial assets and liabilities that are measured at fair value on a recurring basis, that are included in earnings for the years ended December 31, 2015, 2014 and 2013, are reported in the following line descriptions on the Company’s consolidated statements of operations:

	Year Ended December 31,
	2015			2014			2013
Total gains and losses included in earnings for the period:
Institutional brokerage	$	422		$	38		$	1,722
Net investment (loss) income		(754	)		(415	)		2,648
Change in unrealized gains or losses relating to assets still held at the end of the respective period:
Institutional brokerage		123			(38	)		438
Net investment (loss) income		(754	)		304			2,551

Financial Instruments Held for Investment - Designated as Trading

Net gains and losses on such trading securities as of the dates indicated were as follows:

	Year Ended December 31,
	2015			2014			2013
Net (loss) gains recognized on trading securities	$	(1,442	)	$	3,630		$	1,213
Less: Net loss (gains) recognized on trading securities sold during the period		933			(3,732	)		(261	)
Unrealized (losses) gains recognized on trading securities still held at the reporting date	$	(509	)	$	(102	)	$	952

Company's Investments in Hedge Funds and Private Equity Funds Measured at Fair Value Based on Net Asset Value

The following table presents information about the Company’s investments in hedge funds and private equity funds measured at fair value based on NAV at December 31, 2015 and 2014:

	December 31, 2015				December 31, 2014
	Fair Value		Unfunded Commitment		Fair Value		Unfunded Commitment
Hedge funds:
Fixed income/credit-related	$	38,972	$	—	$	57,532	$	—
Multi-strategy		18,930		—		37,890		—
Private equity funds		8,700		212		9,466		2,586
Total	$	66,602	$	212	$	104,888	$	2,586

Financial Instruments Held for Investment - Designated as Available-for-Sale

Gross unrealized gains and losses on these securities as of December 31, 2014 were as follows:

	December 31, 2014
			Unrealized
	Cost Basis		Gains		Losses		Fair Value
Marketable equity securities	$	100	$	72	$	—	$	172

Detail of the Amounts Included in Accumulated Other Comprehensive Income and Reclassified to Earnings

The following tables set forth the changes in the Company’s accumulated other comprehensive income by component for the periods indicated.

	Year Ended December 31,
	2015			2014
Accumulated other comprehensive income, Beginning balance	$	44		$	34
Other comprehensive income before reclassifications		—			10
Amounts reclassified from other comprehensive income		(44	)		—
Accumulated other comprehensive income, at period end	$	—		$	44

Accumulated Net Unrealized Investment Gain (Loss) [Member]

Detail of the Amounts Included in Accumulated Other Comprehensive Income and Reclassified to Earnings

The following provides detail of the amounts included in accumulated other comprehensive income and reclassified to earnings during the specified periods:

	Year Ended December 31,
	2015			2014		2013
Beginning balance	$	44		$	34	$	(1,094	)
Net unrealized investment gains (losses) during the period:
Unrealized holding gains (losses), net of taxes		—			10		619
Reclassification adjustment for recognized losses included in net income, net of taxes		(44	)		—		509
Ending balance	$	—		$	44	$	34