9. Financial Assets and Liabilities

At December 31, 2015 and December 31, 2014, substantially all of Company's financial assets and liabilities, except for the senior secured credit facility and certain exchange memberships, were carried at fair value based on published market prices and are marked to market daily or were short-term in nature and were carried at amounts that approximate fair value. The Company determined that the carrying value of the Company's senior secured credit facility approximates fair value as of December 31, 2015 and December 31, 2014 based on the quoted over-the-counter market prices provided by the issuer of the senior secured credit facility, which was categorized as Level 2.

The fair value of equities, U.S. government obligations and exchange traded notes is estimated using recently executed transactions and market price quotations in active markets and are categorized as Level 1 with the exception of inactively traded equities which are categorized as Level 2. Fair value of the Company's derivative contracts is based on the indicative prices obtained from the banks that are counterparties to these contracts, as well as management's own analyses. The indicative prices have been independently validated through the Company's risk management systems, which are designed to check prices with information independently obtained from exchanges and venues where such financial instruments are listed or to compare prices of similar instruments with similar maturities for listed financial futures in foreign exchange. At December 31, 2015 and December 31, 2014, the Company's derivative contracts and non-U.S. government obligations have been categorized as Level 2.

Transfers in or out of levels are recognized based on the beginning fair value of the period in which they occurred. There were no transfers of financial instruments between levels during the years ended December 31, 2015 and 2014.

Fair value measurements for those items measured on a recurring basis are summarized below as of December 31, 2015:


	December 31, 2015
	Quoted Prices		Significant
	in Active		Other		Significant		Counterparty
	Markets for		Observable		Unobservable		and Cash
	Identical Assets		Inputs		Inputs		Collateral		Total Fair
(in thousands)	(Level 1)		(Level 2)		(Level 3)		Netting		Value
Assets
Financial instruments owned, at fair value:
Equity securities	$	915,848	$	32,243	$	—	$	—	$	948,091
U.S. and Non-U.S. government obligations		—		10,513		—		—		10,513
Exchange traded notes		69,376		—		—		—		69,376
Interest rate swaps		—		311		—		—		311
Currency forwards		—		795,435		—		(785,855)		9,580
Options		—		168		—		—		168
	$	985,224	$	838,670	$	—	$	(785,855)	$	1,038,039
Financial instruments owned, pledged as collateral:
Equity securities	$	232,731	$	—	$	—	$	—	$	232,731
Exchange traded notes		26,444		—		—		—		26,444
	$	259,175	$	—	$	—	$	—	$	259,175
Other Assets
Exchange stock	$	5,984	$	—	$	—	$	—	$	5,984
	$	5,984	$	—	$	—	$	—	$	5,984
Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities	$	935,071	$	1,780	$	—	$	—	$	936,851
U.S. and Non-U.S. government obligations		3,996		—		—		—		3,996
Exchange traded notes		37,761		—		—		—		37,761
Interest rate swaps		—		319		—		—		319
Currency forwards		—		746,014		—		(746,014)		—
Options		—		163		—		—		163
	$	976,828	$	748,276	$	—	$	(746,014)	$	979,090

Fair value measurements for those items measured on a recurring basis are summarized below as of December 31, 2014:


	December 31, 2014
	Quoted
	Prices in
	Active		Significant
	Markets for		Other		Significant		Counterparty
	Identical		Observable		Unobservable		and Cash
	Assets		Inputs		Inputs		Collateral		Total Fair
(in thousands)	(Level 1)		(Level 2)		(Level 3)		Netting		Value
Assets
Financial instruments owned, at fair value:
Equity securities	$	1,216,532	$	17,166	$	—	$	—	$	1,233,698
U.S. and non-U.S. government obligations		—		8,222		—		—		8,222
Exchange traded notes		65,684		—		—		—		65,684
Currency forwards		—		1,629,637		—		(1,629,629)		8
Options		—		321		—		—		321
	$	1,282,216	$	1,655,346	$	—	$	(1,629,629)	$	1,307,933
Financial instruments owned, pledged as collateral:
Equity securities	$	219,159	$	—	$	—	$	—	$	219,159
Exchange traded notes		17,216		—		—		—		17,216
	$	236,375	$	—	$	—	$	—	$	236,375
Other Assets
Exchange stock	$	8,205	$	—	$	—	$	—	$	8,205
	$	8,205	$	—	$	—	$	—	$	8,205
Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities	$	859,836	$	47,896	$	—	$	—	$	907,732
U.S. and non-U.S. government obligations		21,107		—		—		—		21,107
Exchange traded notes		92,513		—		—		—		92,513
Currency forwards		—		1,645,820		—		(1,629,629)		16,191
Options		—		79		—		—		79
Interest rate swaps		—		12		—		—		12
	$	973,456	$	1,693,807	$	—	$	(1,629,629)	$	1,037,634

The Company does not net securities borrowed and securities loaned, or securities purchased under agreements to resell and securities sold under agreements to repurchase. These financial instruments are presented on a gross basis in the consolidated statements of financial condition. In the tables below, the amounts of financial instruments owned that are not offset in the consolidated statements of financial condition, but could be netted against financial liabilities with specific counterparties under legally enforceable master netting agreements in the event of default, are presented to provide financial statement readers with the Company’s estimate of its net exposure to counterparties for these financial instruments.

The following tables set forth the netting of certain financial assets and financial liabilities as of December 31, 2015 and 2014, pursuant to the requirements of ASU 2011-11 and ASU 2013-01.


	December 31, 2015
					Net Amounts of
			Gross Amounts		Assets Presented		Gross Amounts Not Offset In the
			Offset in the		in the		Consolidated
	Gross Amounts		Consolidated		Consolidated		Statement of Financial Condition
	of Recognized		Statement of		Statement of		Financial		Cash Collateral
(in thousands)	Assets		Financial Condition		Financial Condition		Instruments		Received		Net Amount
Offsetting of Financial Assets:
Securities borrowed	$	453,296	$	—	$	453,296	$	(443,659)	$	(281)	$	9,356
Securities purchased under agreements to resell		14,981		—		14,981		(14,981)		—		—
Trading assets, at fair value:
Currency forwards		795,435		(785,855)		9,580		—		—		9,580
Options		168		—		168		(139)		—		29
Interest rate swaps		311		—		311		(311)		—		—
Total	$	1,264,191	$	(785,855)	$	478,336	$	(459,090)	$	(281)	$	18,965



					Net Amounts of
			Gross Amounts		Assets Presented		Gross Amounts Not Offset In the
			Offset in the		in the		Consolidated
	Gross Amounts		Consolidated		Consolidated		Statement of Financial Condition
	of Recognized		Statement of		Statement of		Financial		Cash Collateral
	Assets		Financial Condition		Financial Condition		Instruments		Received		Net Amount
Offsetting of Financial Liabilities:
Securities loaned	$	524,603	$	—	$	524,603	$	(521,407)	$	—	$	3,196
Securities sold under agreements to repurchase		—		—		—		—		—		—
Trading liabilities, at fair value:
Currency forwards		746,014		(746,014)		—		—		—		—
Options		163		—		163		(139)		(24)		—
Interest rate swaps		319		—		319		(311)		(8)		—
Total	$	1,271,099	$	(746,014)	$	525,085	$	(521,857)	$	(32)	$	3,196


	December 31, 2014
					Net Amounts of
			Gross Amounts		Assets Presented		Gross Amounts Not Offset In the
			Offset in the		in the		Consolidated
	Gross Amounts		Consolidated		Consolidated		Statement of Financial Condition
	of Recognized		Statement of		Statement of		Financial		Cash Collateral
(in thousands)	Assets		Financial Condition		Financial Condition		Instruments		Received		Net Amount
Offsetting of Financial Assets:
Securities borrowed	$	484,934	$	—	$	484,934	$	(477,559)	$	—	$	7,375
Securities purchased under agreements to resell		31,463		—		31,463		(31,463)		—		—
Trading assets, at fair value:
Currency forwards		1,629,637		(1,629,629)		8		—		—		8
Options		321		—		321		(76)		—		245
Total	$	2,146,355	$	(1,629,629)	$	516,726	$	(509,098)	$	—	$	7,628



					Net Amounts of
					Liabilities
			Gross Amounts		Presented		Gross Amounts Not Offset In the
			Offset in the		in the		Consolidated
	Gross Amounts		Consolidated		Consolidated		Statement of Financial Condition
	of Recognized		Statement of		Statement of		Financial		Cash Collateral
(in thousands)	Liabilities		Financial Condition		Financial Condition		Instruments		Pledged		Net Amount
Offsetting of Financial Liabilities:
Securities loaned	$	497,862		—	$	497,862	$	(490,768)	$	(2,812)	$	4,282
Securities sold under agreements to repurchase		2,006		—		2,006		(2,006)		—		—
Trading liabilities, at fair value:
Currency forwards		1,645,820		(1,629,629)		16,191		—		(16,191)		—
Options		79		—		79		(79)		—		—
Interest rate swaps		12		—		12		—		(12)		—
Total	$	2,145,779	$	(1,629,629)	$	516,150	$	(492,853)	$	(19,015)	$	4,282

Excluded from the fair value and offsetting tables above is net unsettled fair value on long and short futures contracts in the amounts of $(8.1) million and $46.4 million, which are included within receivables from broker-dealers and clearing organizations as of December 31, 2015 and 2014, respectively, and $(11.7) million and $(3.6) million, which are included within payables to broker-dealers and clearing organizations as of December 31, 2015 and 2014, respectively.

The following table presents gross obligations for securities lending transactions by remaining contractual maturity and the class of collateral pledged.


		December 31, 2015
		Remaining Contractual Maturity
		Overnight and		Less than		30 - 90		Over 90
(in thousands)		Continuous		30 days		days		Days		Total

Securities lending transactions:
Equity securities	$	524,603	$	—	$	—	$	—	$	524,603
Total	$	524,603	$	—	$	—	$	—	$	524,603