Derivatives (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair value of derivative contracts

The fair value of derivative contracts, computed in accordance with Newmark’s netting policy, is set forth below (in thousands):

	As of September 30, 2020						As of December 31, 2019
Derivative contract	Assets		Liabilities		Notional Amounts(1)		Assets		Liabilities		Notional Amounts(1)
Rate lock commitments	$	45,561	$	1,133	$	378,546	$	32,035	$	12,124	$	1,396,827
Nasdaq Forwards	18,959		—		267,480		26,502		—		267,480
Forward sale contracts	9,625		41,730		1,889,144		14,389		13,537		1,606,943
Total	$	74,145	$	42,863	$	2,535,170	$	72,926	$	25,661	$	3,271,250

(1)Notional amounts represent the sum of gross long and short derivative contracts, an indication of the volume of Newmark’s derivative activity, and do not represent anticipated losses.

Summary of gain (loss) on change in fair value of derivatives included in condensed consolidated statements of operations

Gains and losses on derivative contracts which are included on the unaudited condensed consolidated statements of operations were as follows (in thousands):

	Location of gain (loss) recognized in income for derivatives	Three Months Ended September 30,				Nine Months Ended September 30,
		2020		2019		2020		2019
Derivatives not designed as hedging instruments:
Nasdaq Forwards	Other income (loss), net	$	(5,771)	$	(8,214)	$	(7,543)	$	(37,181)
Rate lock commitments	Gains from mortgage banking activities/originations, net	(3,951)		5,734		46,004		27,113
Rate lock commitments	Compensation and employee benefits	(677)		236		(1,576)		(1,620)
Forward sale contracts	Gains (loss) from mortgage banking activities/originations, net	16,187		12		(32,105)		(24,404)
Total		$	5,788	$	(2,232)	$	4,780	$	(36,092)