Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

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 December 31, 2017:


	December 31, 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	$	758,596	$	1,167,995	$	—	$	—	$	1,926,591
U.S. and Non-U.S. government obligations		5,968		16,815		—		—		22,783
Corporate Bonds		—		60,975		—		—		60,975
Exchange traded notes		13,576		68,819		—		—		82,395
Currency forwards		—		2,045,487		—		(2,027,697)		17,790
Options		7,045		—		—		—		7,045
		785,185		3,360,091		—		(2,027,697)		2,117,579

Financial instruments owned, pledged as collateral:
Equity securities	$	410,670	$	175,581	$	—	$	—	$	586,251
U.S. and Non-U.S. government obligations		99		—		—		—		99
Exchange traded notes		82		8,611		—		—		8,693
		410,851		184,192		—		—		595,043

Other Assets
Equity investment	$	—	$	—	$	40,588	$	—	$	40,588
Exchange stock		1,952		—		—		—		1,952
Other(1)		—		55,824		—		—		55,824
		1,952		55,824		40,588		—		98,364

Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities	$	847,816	$	1,355,616	$	—	$	—	$	2,203,432
U.S. and Non-U.S. government obligations		18,940		12,481		—		—		31,421
Corporate Bonds		—		81,118		—		—		81,118
Exchange traded notes		1,514		54,248		—		—		55,762
Currency forwards		—		2,032,017		—		(2,024,991)		7,026
Options		5,839		—		—		—		5,839
	$	874,109	$	3,535,480	$	—	$	(2,024,991)	$	2,384,598

(1)

Other primarily consists of a $55.8 million receivable from Bats related to the sale of KCG Hotspot.

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 fair value measurements not measured on a recurring basis

Financial assets and liabilities not measured at fair value as of December 31, 2017:


	December 31, 2017
						Quoted Prices		Significant
						in Active		Other		Significant
						Markets for		Observable		Unobservable
						Identical Assets		Inputs		Inputs
		Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and cash equivalents	$	532,887	$	532,887	$	532,887	$	—	$	—

Securities borrowed	$	1,471,172	$	1,471,172	$	—	$	1,471,172	$	—

Receivables from broker dealers and clearing organizations		972,018		972,018		36,513		935,505		—

Total Assets	$	2,976,077	$	2,976,077	$	569,400	$	2,406,677	$	—

Liabilities
Short-term borrowings	$	27,883	$	27,883	$	—	$	27,883	$	—

Long-term borrowings	$	1,388,548	$	1,465,489	$	—	$	1,465,489	$	—

Securities loaned	$	754,687	$	754,687	$	—	$	754,687	$	—

Securities sold under agreements to repurchase	$	390,642	$	390,642	$	—	$	390,642	$	—

Payables to broker dealer and clearing organizations		716,205		716,205		2,925		713,280		—

Total Liabilities	$	3,277,965	$	3,354,906	$	2,925	$	3,351,981	$	—

Financial assets and liabilities not measured at fair value as of December 31, 2016:


	December 31, 2016
						Quoted Prices		Significant
						in Active		Other		Significant
						Markets for		Observable		Unobservable
						Identical Assets		Inputs		Inputs
		Carrying Value		Fair Value		(Level 1)		(Level 2)		(Level 3)
Assets
Cash and cash equivalents	$	181,415	$	181,415	$	181,415	$	—	$	—

Securities borrowed	$	220,005	$	220,005	$	—	$	220,005	$	—

Receivables from broker dealers and clearing organizations		448,728		972,018		—		972,018		—

Total Assets	$	850,148	$	1,373,438	$	181,415	$	1,192,023	$	0

Liabilities
Short-term borrowings	$	25,000	$	25,000	$	—	$	25,000	$	—

Long-term borrowings	$	564,957	$	564,957	$	—	$	564,957	$	—

Securities loaned	$	222,203	$	222,203	$	—	$	222,203	$	—

Payables to broker dealer and clearing organizations		695,978		695,978		—		695,978		—

Total Liabilities	$	1,508,138	$	1,508,138	$	—	$	1,508,138	$	—

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


	Year Ended December 31, 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)				December 31		December 31
(in thousands)	2016		Purchases		Gains / (Losses)		Level 3		Settlement		2017		2017
Assets
Other assets:
Equity investment	$	36,031	$	—	$	4,557	$	—	$	—	$	40,588	$	4,557
Other		—		3,000		—		—		(3,000)		—		—
Total	$	36,031	$	3,000	$	4,557	$	—	$	(3,000)	$	40,588	$	4,557


		Year Ended December 31, 2016
											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)		December 31		December 31
(in thousands)	2015		Purchases		Gains / (Losses)		Level 3		2016		2016
Assets
Other assets:
Equity investment	$	—	$	38,754	$	(3,117)	$	394	$	36,031	$	(3,117)
Total	$	—	$	38,754	$	(3,117)	$	394	$	36,031	$	(3,117)

Summary of netting of certain financial assets and financial liabilities


	December 31, 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	$	1,471,172	$	—	$	1,471,172	$	(1,418,672)	$	(13,318)	$	39,182
Trading assets, at fair value:
Currency forwards		2,045,487		(2,027,697)		17,790		—		—		17,790
Options		7,045		—		7,045		(45)		—		7,000
Total	$	3,523,704	$	(2,027,697)	$	1,496,007	$	(1,418,717)	$	(13,318)	$	63,972



					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	$	754,687	$	—	$	754,687	$	(737,731)	$	(10,776)	$	6,180
Securities sold under agreements to repurchase		390,642		—		390,642		(390,642)		—		—
Trading liabilities, at fair value:
Currency forwards		2,032,017		(2,024,991)		7,026		—				7,026
Options		5,839		—		5,839		(56)		—		5,783
Total	$	3,183,185	$	(2,024,991)	$	1,158,194	$	(1,128,429)	$	(10,776)	$	18,989


	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
	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


		December 31, 2017
		Remaining Contractual Maturity
	Overnight and		Less than		30 - 60		61 - 90
(in thousands)	Continuous		30 days		days		Days		Total

Repurchase agreements:
Equity securities	$	—	$	100,000	$	90,000	$	200,000	$	390,000
U.S. and Non-U.S. government obligations		642		—		—		—		642
Total	$	642	$	100,000	$	90,000	$	200,000	$	390,642

Securities lending transactions:
Equity securities	$	754,687	$	—	$	—	$	—	$	754,687
Total	$	754,687	$	—	$	—	$	—	$	754,687


		December 31, 2016
		Remaining Contractual Maturity
	Overnight and		Less than		30 - 60		61 - 90
(in thousands)	Continuous		30 days		days		Days		Total

Repurchase agreements:
Equity securities	$	222,203	$	—	$	—	$	—	$	222,203
Total	$	222,203	$	—	$	—	$	—	$	222,203