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Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Fair Value and Derivative Instruments in Consolidated Statements of Financial Condition
The following tables summarize the fair value and number of derivative instruments held at March 31, 2017 and December 31, 2016. These instruments include those classified as Financial instruments owned, at fair value, Financial instruments sold, not yet purchased, at fair value, as well as futures contracts and bi-lateral over the counter swaps which are reported within Receivable from brokers, dealers and clearing organizations on the Consolidated Statements of Financial Condition. The fair value of assets/liabilities are shown gross of counterparty netting and cash collateral received and pledged. The following tables also provide information regarding 1) the extent to which, under enforceable master netting agreements, such balances are presented net on the Consolidated Statements of Financial Condition as appropriate under GAAP, and 2) the extent to which other rights of setoff associated with these agreements exist and could have an effect on the Company's financial position (in thousands, except contract amounts):
 
 
 
March 31, 2017
 
Financial Statements
 
Assets
 
Liabilities
 
Location
 
Fair Value
 
Contracts
 
Fair Value
 
Contracts
Foreign currency
 
 
 
 
 
 
 
 
 
Futures contracts
Receivable from brokers, dealers and clearing organizations
 
$
163

 
364

 
$
240

 
438

Forward contracts (1)
Financial instruments owned, at fair value
 
—

 
—

 
598

 
1

Equity
 
 
 
 
 
 
 
 
 
Futures contracts
Receivable from brokers, dealers and clearing organizations
 
1,594

 
7,047

 
2,978

 
7,326

Swap contracts
Receivable from brokers, dealers and clearing organizations
 
—

 
—

 
195

 
2

Listed options
Financial instruments owned/sold, not yet purchased, at fair value
 
12,299

 
75,294

 
35,835

 
76,347

Fixed income
 
 
 
 
 
 
 
 
 
Futures contracts
Receivable from brokers, dealers and clearing organizations
 
2,545

 
4,234

 
5,678

 
4,038

Commodity
 
 
 
 
 
 
 
 
 
Futures contracts
Receivable from brokers, dealers and clearing organizations
 
45,889

 
23,531

 
45,697

 
25,762

Gross derivative assets/liabilities, before netting
 
$
62,490

 
 
 
$
91,221

 
 
Less: Legally enforceable master netting agreements
 
 
 
 
 
 
 
 
Exchange traded (3)
 
(49,841
)
 
 
 
(54,593
)
 
 
Bi-lateral over-the-counter (4)
 
—

 
 
 
(195
)
 
 
Net amounts per Consolidated Statement of Financial Condition (5)
 
$
12,649

 
 
 
$
36,433

 
 
 
 
 
December 31, 2016
 
Financial Statements
 
Assets
 
Liabilities
 
Location
 
Fair Value
 
Contracts
 
Fair Value
 
Contracts
Foreign currency
 
 
 
 
 
 
 
 
 
Futures contracts
Receivable from brokers, dealers and clearing organizations
 
$
360

 
1,285

 
$
1,663

 
6,495

Forward contracts (1)
Financial instruments owned, at fair value
 
30

 
1

 
—

 
—

Equity
 
 
 
 
 
 
 
 
 
Futures contracts
Receivable from brokers, dealers and clearing organizations
 
1,451

 
2,056

 
1,644

 
2,944

Swap contracts
Receivable from brokers, dealers and clearing organizations
 
16

 
1

 
154

 
1

Listed options
Financial instruments owned/sold, not yet purchased, at fair value
 
19,100

 
85,797

 
12,961

 
90,063

Forward contracts(2)
Accrued expenses and other liabilities
 
—

 
—

 
1,599

 
1

Fixed income
 
 
 
 
 
 
 
 
 
Futures contracts
Receivable from brokers, dealers and clearing organizations
 
4,627

 
8,590

 
5,541

 
5,165

Commodity
 
 
 
 
 
 
 
 
 
Futures contracts
Receivable from brokers, dealers and clearing organizations
 
86,393

 
31,800

 
86,100

 
31,906

Gross derivative assets/liabilities, before netting
 
$
111,977

 
 
 
$
109,662

 
 
Less: Legally enforceable master netting agreements
 
 
 
 
 
 
 
 
Exchange traded (3)
 
(92,572
)
 
 
 
(94,948
)
 
 
Bi-lateral over-the-counter (4)
 
—

 
 
 
(154
)
 
 
Net amounts per Consolidated Statement of Financial Condition (5)
 
$
19,405

 
 
 
$
14,560

 
 
(1) 
The foreign currency forward contract represents a net investment hedge and is designated as a hedging instrument.
(2) 
The equity forward contract represents a liability to deliver shares of Bats common stock to General Atlantic as described in Footnote 8 "Investments".
(3) 
Exchange traded instruments comprise futures contracts.
(4) 
Bi-lateral over-the-counter instruments comprise swaps and forward contracts.
(5) 
The Company has not received or pledged additional collateral under master netting agreements and or other credit support agreements that is eligible to be offset beyond what is offset in the Consolidated Statements of Financial Condition.
Summary of Fair Value and Derivative Instruments in Consolidated Statements of Operations
The following table summarizes the gains and losses included in the Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016.
 
 
 
 
Gain (Loss) Recognized
 
 
Financial Statements
 
For the three months ended March 31,
 
 
Location
 
2017
 
2016
Derivative instruments not designated as hedging instruments:
 
 
 
 
 
 
Foreign currency
 
 
 
 
 
 
Futures contracts
 
Trading revenues, net
 
$
2,712

 
$
312

Equity
 
 
 
 
 
 
  Futures contracts
 
Trading revenues, net
 
(7,998
)
 
8,922

  Swap contracts
 
Trading revenues, net
 
(795
)
 
1,886

  Listed options
 
Trading revenues, net
 
(24
)
 
3,871

Fixed income
 
 
 
 
 
 
  Futures contracts
 
Trading revenues, net
 
(118
)
 
6,833

Commodity
 
 
 
 
 
 
  Futures contracts
 
Trading revenues, net
 
3,750

 
6,966

 
 
 
 
$
(2,473
)
 
$
28,790

Derivative instruments designated as hedging instruments:
 
 
 
 
 
 
Foreign exchange - forward contract
 
Accumulated other comprehensive (loss) income
 
$
(389
)
 
$
(149
)