SECURITIES BORROWING AND LENDING

3 Months Ended

Mar. 31, 2023

NOTE 7: SECURITIES BORROWING AND LENDING

When we lend securities to third parties we receive cash as collateral for the securities loaned. In the table below, the cash collateral we hold related to loaned securities is presented in “securities loaned” and the fair value of securities lent is presented in “security collateral pledged.” Similarly, when we borrow securities from third parties or fully-paid securities from users, we provide cash collateral. In the table below, the amount of that cash collateral is presented in “securities borrowed” and the fair value of the securities received is presented in “security collateral received.”

Our securities lending transactions are subject to enforceable master netting arrangements with other broker-dealers; however, we do not net securities borrowing and lending transactions. Therefore, activity related to securities borrowing and lending activities are presented gross in our unaudited condensed consolidated balance sheets.

The following tables set forth certain balances related to our securities borrowing and lending activities as of December 31, 2022 and March 31, 2023:


	December 31,		March 31,
(in millions)	2022		2023
Assets	Securities borrowed
Gross amount of securities borrowed	$	517	$	844
Gross amount offset on the consolidated balance sheets	—		—
Amounts of assets presented on the consolidated balance sheets	517		844
Gross amount of securities borrowed not offset on the consolidated balance sheets:
Securities borrowed	517		844
Security collateral received	(509)		(846)
Net amount	$	8	$	(2)

Liabilities	Securities loaned
Gross amount of securities loaned	$	1,834	$	2,609
Gross amount of securities loaned offset on the consolidated balance sheets	—		—
Amounts of liabilities presented on the consolidated balance sheets	1,834		2,609
Gross amount of securities loaned not offset on the consolidated balance sheets:
Securities loaned	1,834		2,609
Security collateral pledged	(1,629)		(2,368)
Net amount	$	205	$	241

We obtain securities on terms that permit us to pledge and/or transfer securities to others. As of December 31, 2022 and March 31, 2023, we were permitted to re-pledge securities with a fair value of $4.36 billion for both periods under margin account agreements with users, and securities with a fair value of $18.4 million and $1.0 million that we had borrowed under master securities loan agreements (“MSLAs”) with third parties. Under the Fully-Paid Securities Lending program, as of March 31, 2023, we were permitted to re-pledge securities with a fair value of $6.34 billion including securities with a fair value of $845.0 million that we had borrowed from users.

As of December 31, 2022 and March 31, 2023, we had re-pledged securities with a fair value of $1.63 billion and $2.37 billion, in each case under MSLAs and fixed-term securities lending agreements with third parties. In addition, as of December 31, 2022 and March 31, 2023, we had re-pledged $231.2 million and $430.7 million of the permitted amounts under the Margin Securities Lending program with clearing organizations to meet deposit requirements.