Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Financial Assets and Liabilities

Summary of fair value measurements measured on a recurring basis

Fair value measurements for those items measured on a recurring basis are summarized below as of September 30, 2017:

	September 30, 2017
	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	$	591,928	$	1,434,092	$	—	$	—	$	2,026,020
U.S. and Non-U.S. government obligations		2,783		21,002		—		—		23,785
Corporate Bonds		—		83,532		—		—		83,532
Exchange traded notes		4,553		53,081		—		—		57,634
Currency forwards		—		3,459,340		—		(3,458,283)		1,057
Options		11,220		—		—		—		11,220
	$	610,484	$	5,051,047	$	—	$	(3,458,283)	$	2,203,248
Financial instruments owned, pledged as collateral:
Equity securities	$	413,860	$	278,270	$	—	$	—	$	692,130
Exchange traded notes		520		6,502		—		—		7,022
	$	414,380	$	284,772	$	—	$	—	$	699,152
Other Assets
Equity investment	$	—	$	—	$	37,263	$	—	$	37,263
Exchange stock		3,211		—		—		—		3,211
Other(1)		—		55,363		3,000		—		58,363
	$	3,211	$	55,363	$	40,263	$	—	$	98,837
Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities	$	895,116	$	1,470,863	$	—	$	—	$	2,365,979
U.S. and Non-U.S. government obligations		10,375		14,975		—		—		25,350
Corporate Bonds		—		83,535				—		83,535
Exchange traded notes		355		50,327		—		—		50,682
Currency forwards		—		3,492,928		—		(3,492,847)		81
Options		10,264		—		—		—		10,264
	$	916,110	$	5,112,628	$	—	$	(3,492,847)	$	2,535,891

(1) Other primarily consists of a $55.4 million receivable from Bats related to the sale of KCG Hotspot and $3.0 million receivable from the sale of an investment.

Fair value measurements for those items measured on a recurring basis are summarized below as of December 31, 2016:

	December 31, 2016
	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	$	1,597,049	$	31,988	$	—	$	—	$	1,629,037
Non-U.S. government obligations		—		10,765		—		—		10,765
Exchange traded notes		37,034		—		—		—		37,034
Currency forwards		—		1,147,261		—		(1,140,239)		7,022
Options		—		141		—		—		141
	$	1,634,083	$	1,190,155	$	—	$	(1,140,239)	$	1,683,999
Financial instruments owned, pledged as collateral:
Equity securities	$	128,202	$	—	$	—	$	—	$	128,202
Exchange traded notes		15,681		—		—		—		15,681
	$	143,883	$	—	$	—	$	—	$	143,883
Other Assets
Equity investment	$	—	$	—	$	36,031	$	—	$	36,031
Exchange stock		449		—		—		—		449
	$	449	$	—	$	36,031	$	—	$	36,480
Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities	$	1,323,693	$	6,638	$	—	$	—	$	1,330,331
Exchange traded notes		18,744		—		—		—		18,744
Currency forwards		—		1,009,038		—		(1,009,038)		—
Options		—		80		—		—		80
	$	1,342,437	$	1,015,756	$	—	$	(1,009,038)	$	1,349,155

Summary of changes in Level 3 financial instruments measured at fair value on a recurring basis

		Nine Months Ended September 30, 2017
											Change in Net
											Unrealized Gains
											/ (Losses) on
											Investments
	Balance at				Total Realized		Net Transfers		Balance at		still held at
	December 31,				and Unrealized		into (out of)		September 30,		September 30,
(in thousands)	2016		Purchases		Gains / (Losses)		Level 3		2017		2017
Assets
Other assets:
Equity investment	$	36,031	$	—	$	1,232	$	—	$	37,263	$	1,232
Other		—		3,000		—		—		3,000		—
Total	$	36,031	$	3,000	$	1,232	$	—	$	40,263	$	1,232

Summary of netting of certain financial assets and financial liabilities

	September 30, 2017
					Net Amounts of
			Gross Amounts		Assets Presented
			Offset in the		in the		Gross Amounts Not Offset In the
	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	$	1,525,403	$	—	$	1,525,403	$	(1,480,267)	$	(844)	$	44,292
Securities purchased under agreements to resell		8,249		—		8,249		(8,188)		—		61
Trading assets, at fair value:												—
Currency forwards		3,459,340		(3,458,283)		1,057		—		—		1,057
Options		11,220		—		11,220		(505)		—		10,715
Total	$	5,004,212	$	(3,458,283)	$	1,545,929	$	(1,488,960)	$	(844)	$	56,125

					Net Amounts of
			Gross Amounts		Liabilities Presented
			Offset in the		in the		Gross Amounts Not Offset In the
	Gross Amounts		Consolidated		Consolidated		Statement of Financial Condition
	of Recognized		Statement of		Statement of		Financial		Cash Collateral
	Liabilities		Financial Condition		Financial Condition		Instruments		Pledged		Net Amount
Offsetting of Financial Liabilities:
Securities loaned	$	582,915	$	—	$	582,915	$	(574,885)	$	—	$	8,030
Securities sold under agreements to repurchase		620,887		—		620,887		(620,887)		—		—
Trading liabilities, at fair value:												—
Currency forwards		3,492,928		(3,492,847)		81		—		—		81
Options		10,264		—		10,264		(505)		—		9,759
Total	$	4,706,994	$	(3,492,847)	$	1,214,147	$	(1,196,277)	$	—	$	17,870

	December 31, 2016
					Net Amounts of
			Gross Amounts		Assets Presented
			Offset in the		in the		Gross Amounts Not Offset In the
	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	$	220,005	$	—	$	220,005	$	(216,778)	$	(248)	$	2,979
Trading assets, at fair value:
Currency forwards		1,147,261		(1,140,239)		7,022		—		—		7,022
Options		141		—		141		(80)		(13)		48
Total	$	1,367,407	$	(1,140,239)	$	227,168	$	(216,858)	$	(261)	$	10,049

					Net Amounts of
					Liabilities
			Gross Amounts		Presented		Gross Amounts Not Offset In the
			Offset in the		in the		Consolidated
			Condensed		Condensed		Condensed 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	$	222,203	$	—	$	222,203	$	(221,792)	$	—	$	411
Trading liabilities, at fair value:
Currency forwards		1,009,038		(1,009,038)		—		—		—		—
Options		80		—		80		(80)		—		—
Total	$	1,231,321	$	(1,009,038)	$	222,283	$	(221,872)	$	—	$	411

Summary of gross obligations for repurchase agreement and securities borrowed transactions by remaining contractual maturity and class of collateral pledged

		September 30, 2017
		Remaining Contractual Maturity
	Overnight and		Less than		30 - 60		61 - 90
(in thousands)	Continuous		30 days		days		Days		Total
Repurchase agreements:
Equity securities	$	—	$	205,000	$	175,000	$	240,000	$	620,000
U.S. and Non-U.S. government obligations		887		—		—		—		887
Total	$	887	$	205,000	$	175,000	$	240,000	$	620,887
Securities lending transactions:
Equity securities	$	582,915	$	—	$	—	$	—	$	582,915
Total	$	582,915	$	—	$	—	$	—	$	582,915