OFFSETTING ASSETS AND LIABILITIES

12 Months Ended

Dec. 31, 2021

NOTE 10: OFFSETTING ASSETS AND LIABILITIES

Certain financial instruments are eligible for offset on our consolidated balance sheets under GAAP. Our securities borrowing and lending agreements are subject to master netting arrangements and collateral arrangements and meet the GAAP guidance to qualify for offset. A master netting arrangement with a counterparty creates a right of offset for amounts due to and from that same counterparty that is enforceable in the event of a default or bankruptcy. Our policy is to recognize amounts subject to master netting arrangements on a gross basis on the consolidated balance sheets. Substantially all securities borrowing and lending agreements have an open contractual term and may be terminated upon notice by either party except for one of these agreements, which has a contractual term of 30 days with a daily minimum commitment of $25 million.

Our assets and liabilities subject to master netting arrangements are as follows:


	December 31,
(in thousands)	2020		2021
Assets	Securities borrowed
Gross amount of securities borrowed	$	372	$	345
Gross amount offset on the consolidated balance sheets	—		—
Amounts of assets presented on the consolidated balance sheets(1)	372		345
Gross amount of securities borrowed not offset on the consolidated balance sheets:
Securities borrowed	372		345
Security collateral received	(361)		(329)
Net amount	$	11	$	16

Liabilities	Securities loaned
Gross amount of securities loaned	$	1,921,118	$	3,651,035
Gross amount of securities loaned offset on the consolidated balance sheets	—		—
Amounts of liabilities presented on the consolidated balance sheets	1,921,118		3,651,035
Gross amount of securities loaned not offset on the consolidated balance sheets:
Securities loaned	1,921,118		3,651,035
Security collateral pledged	(1,787,819)		(3,426,766)
Net amount	$	133,299	$	224,269

________________

(1)Securities borrowed are included in receivables from brokers, dealers, and clearing organizations on the consolidated balance sheets.

We also obtain securities under margin agreements on terms which permit us to pledge and/or transfer securities to others. As of December 31, 2020 and 2021, we were permitted to re-pledge securities with a fair value of $4.63 billion and $9.21 billion under the margin agreements and $0.4 million and $0.3 million under the securities lending agreements. As of December 31, 2021, we re-pledged $220.1 million of the permitted amount with clearing organizations to meet deposit requirements.