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Material Accounting Policy Information
 12 Months Ended
Dec. 31, 2025
Material Accounting Policy Information [Abstract]  
Material Accounting Policy Information 3        Material Accounting Policy Information
The Group is required to disclose material accounting policy information. Accounting policy
information is material if it can reasonably be expected to influence decisions that the primary users of
financial statements make on the basis of those financial statements when considered together with other
information included in the financial statements. The Group considers an accounting policy as material if
the information relates to material transactions, other events or conditions or involves a high degree of
uncertainty and has a material impact on the financial statements.
The principal accounting policies adopted are set out below.
(a) Basis of accounting
The consolidated financial statements of the Group and the standalone financial statements of
Marex Group plc have been prepared on a historical cost basis, except for the revaluation of certain
assets and liabilities that are measured at fair value, as explained in the accounting policies below.
(b) Basis of consolidation
The consolidated financial statements include the financial statements of the Company and entities
controlled by the Company (its subsidiaries) made up to 31 December each year. Control is achieved
when the Company:
•has the power over the investee;
•is exposed, or has rights, to variable return from its involvement with the investee; and
•has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if the facts and circumstances
indicate that there are changes to one or more of the three elements of control listed above.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and
ceases when the Company loses control of the subsidiary. Specifically, the results of subsidiaries
acquired or disposed of during the year are included in the consolidated income statement from the date
the Company gains control until the date when the Company ceases to control the subsidiary.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the
accounting policies used in line with the Group’s accounting policies. All intragroup assets and liabilities,
equity, income, expenses and cash flows relating to transactions between the members of the Group are
eliminated on consolidation.
3        Material Accounting Policy Information continued
(c) Current versus non-current classification
The Group presents assets and liabilities in the statement of financial position based on current or
non-current classification. An asset is current when it is:
•expected to be realized or intended to be sold or consumed in the normal operating cycle;
•held primarily for the purpose of trading; or
•expected to be realized within 12 months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
•it is expected to be settled in the normal operating cycle;
•it is held primarily for the purpose of trading;
•it is due to be settled within 12 months after the reporting period; or
•the Group does not have the right at the end of the reporting period to defer settlement of the
liability for at least 12 months after the reporting period.
The terms of the liability that could, at the option of the counterparty, result in its settlement by the
issue of equity instruments do not affect its classification.
The Group classifies all other liabilities as non-current. Deferred tax assets and liabilities are
classified as non-current assets and liabilities.
(d) Going concern
The Directors have assessed the going concern basis of preparation of the Group’s consolidated
financial statements, drawing on the Group's Internal Capital Adequacy and Risk Assessment (ICARA)
process as the principal framework for this evaluation. Through the ICARA, the Directors have identified
and assessed the material risks and potential harms to which the Group is exposed, including market risk
arising from proprietary positions and client-related exposures, credit and counterparty risk, operational
and business continuity risk, and liquidity risk arising from potential stress on funding lines and collateral
requirements.
These risks have been incorporated into a range of severe but plausible stress scenarios, including
adverse market movements leading to increased margin calls and potential counterparty default, a
sustained reduction in trading volumes and revenue, and a combined market and liquidity stress reflecting
correlated risk factors. The scenarios have been calibrated with reference to both historical stress events
and forward-looking indicators reflecting the current macroeconomic and geopolitical environment. The
results of these stress tests demonstrate that the Group maintains sufficient regulatory capital and
liquidity resources throughout the forecast period to meet its Investment Firm Prudential Regime (IFPR)
requirements, including its own funds threshold requirement and liquid assets threshold requirement. The
Group also retains adequate headroom within its credit facilities, with sufficient cash and undrawn
balances to meet contractual maturities and covenant obligations under stressed conditions.
On this basis, the Directors have concluded that no material uncertainty exists that may cast
significant doubt on the Group's ability to continue as a going concern for a period of at least 12 months
from the date these financial statements were approved and authorized for issuance. Accordingly, the
Directors continue to adopt the going concern basis of accounting in preparing these consolidated
financial statements.
3        Material Accounting Policy Information continued
(e) Business combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration
transferred in a business combination is measured at fair value, which is calculated as the sum of the
acquisition-date fair values of assets transferred by the Group, liabilities incurred by the Group to the
former owners of the acquiree and the equity interest issued by the Group in exchange for control of the
acquiree. Acquisition-related costs are recognized in the income statement as incurred and presented
within other expenses.
At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognized
at their fair values at the acquisition date, except that, where relevant:
•deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements
are recognized and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee
Benefits respectively;
•liabilities or equity instruments related to share-based payment arrangements of the acquiree or
share-based payment arrangements of the Group entered into to replace share-based
arrangements of the acquiree are measured in accordance with IFRS 2 at the acquisition date;
and
•assets (or disposal groups) that are classified as held for sale in accordance with IFRS 5 Non-
current Assets held for Sale and Discontinued Operations are measured in accordance with IFRS
5.
Goodwill arises on business combinations and represents the excess of the sum of the
consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of
the acquirer’s previously held equity interest in the acquiree (if any) over the fair value of the Group’s
share of the identifiable assets, liabilities and contingent liabilities acquired. Where the fair value of the
Group’s share of the identifiable assets, liabilities and contingent liabilities of the acquired business is
greater than the cost of acquisition, the excess is recognized immediately in the income statement as a
bargain purchase gain.
When the consideration transferred by the Group in a business combination includes contingent
consideration, the contingent consideration is measured at its acquisition date fair value. Subsequent
accounting for changes in the fair value of the contingent consideration depends on its classification.
Contingent consideration that is classified as equity is not subsequently remeasured and its settlement is
accounted for within equity. Other contingent consideration is remeasured to fair value at subsequent
reporting dates with changes in fair value recognized in the income statement.
Goodwill has an indefinite useful economic life and is measured at cost less any accumulated
impairment losses. It is tested for impairment annually and whenever there is an indicator of impairment.
Where the carrying value exceeds the higher of the value in use or fair value less cost to sell, an
impairment loss is recognized in the income statement.
3        Material Accounting Policy Information continued
(f) Revenue recognition
The Group’s Revenue consists of:
Net commission and fee income
Sales and brokerage commissions are generated by internal brokers and introducing broker
dealers when customers trade exchange traded derivatives, over-the-counter ('OTC') traded derivatives,
fixed income securities and equity securities.
The Group is responsible for executing and clearing its customers’ purchases and sales and as
such it acts as principal, as a result, commission and fee income is recognized on a gross basis.
Commissions charged to customers on exchange traded derivatives and over-the-counter traded
derivatives are recognized at a point in time on the trade date when a client order is cleared or executed
(i.e. when the performance obligation is satisfied). Commissions charged to customers on traded
securities are sales-based commissions that are recognized at a point in time on the trade date. Sales
based commissions are typically a fixed fee per security transaction and in certain instances, are based
on a percentage of the transaction value.
Commission charged to customers on clearing transactions recoup clearing fees and other fee
expenses incurred. Clearing fees earned represent the recharge of transaction-based fees charged by the
various exchanges and clearing organizations at which the Group or one of its clearing brokers is a
member for the purpose of executing and/or clearing trades through them. Clearing fees incurred are
generally passed through to clients’ accounts and are reported gross as the Group maintains control over
the clearing and execution services provided, maintains relationships with the exchanges or clearing
brokers, and has ultimate discretion in whether the fees incurred are passed through to the clients and the
rates at which they are passed through. As clearing fees charged are transaction based, they are
recognized at a point in time on the trade date along with the related commission income when the client
order is cleared or executed.
In connection with the execution and clearing of trades, the Group is required to pay fees to the
executing brokers, exchanges, clearing organizations and banks. These fees are based on transaction
volumes and recognized as commission and fee expense on the trade date. The Group also pays
commissions to third party introducing brokers (individuals or organizations) that maintain relationships
with clients and introduce them to the Group. Introducing brokers accept orders from clients whilst
the Group provides the accounts, transaction, margining and reporting services, including money and
securities from clients. Introducing brokers' commissions are determined monthly and presented in
commission and fee expense in the income statement and settled quarterly. Commission and fee
expenses are generally passed through to clients' accounts. No other costs related to the generation of
commission income are included within commission and fee expense.
3        Material Accounting Policy Information continued
Net trading income
Net trading income includes realized and unrealized gains and losses derived from transactions in
OTC derivatives, exchange traded derivatives, equity instruments, stock borrowing and stock lending,
repurchase and reverse repurchase agreements, fixed income securities, and foreign exchange. These
transactions are the result of trading activity, being managed at fair value. As such the resulting net
trading income includes the gains and losses on transactions executed with clients and other
counterparties, and where the Group enters into these transactions on its own account.
Net trading income also includes fair value movements on the following financial liabilities
designated at fair value through profit or loss:
•Structured notes, are hybrid debt securities issued. Fair value movements, excluding those
related to own credit risk and interest expense, are recorded in net trading income;
•Repurchase agreements and stock loans, held as part of the Group's trading book, are managed
at fair value. The fair value movements, including the realized gain or loss on settlement, and the
interest derived from the activity is recorded within net trading income.
In certain transactions, the transaction price of the financial instrument differs from the fair value
calculated using valuation models. This difference is called day 1 profit or loss and is recognized
immediately in the income statement in net trading income only when:
•the fair value determined using valuation models is based only on observable inputs;
•the fair value determined using valuation models is based on both observable and unobservable
inputs but the impact of the unobservable inputs in the fair value is insignificant.
In all other cases, the financial instrument is initially recognized at the transaction price and the
recognition of day 1 profit or loss is deferred and amortized through the term of the deal or to the date
when unobservable inputs become observable (if sooner) unless specific factors relevant to the trade
require a specific recognition pattern.
Net interest income
Interest income includes the interest earned on the cash and financial instruments balances held
on behalf of the Group's clients as well as the Group's own cash balances and the interest earned from
investments in reverse repurchase agreements and US Treasuries which are undertaken on the Group’s
own behalf instead of the facilitation of the Group’s market making and opportunistic trading activities.
Interest income is calculated using the effective interest rate (‘EIR’) method. The effective interest rate is
the rate that exactly discounts the estimated future cash payments or receipts over the expected life of
the financial instrument to the gross carrying amount of the financial asset (before adjusting for expected
credit losses) or the amortized cost of the financial liability.
Interest expense includes interest paid to our clients on their balances and interest paid on debt
securities issued and other drawn borrowings. Interest expense is calculated using the effective interest
method. The interest expense component of the Group’s structured notes, designated at fair value
through profit or loss is also presented in interest expense. This approach aligns with the way that the
Group manages the issued debt securities, as it considers the structured notes to be a source of liquidity
and funding and therefore the interest flows are crucial to understanding the interest rate sensitivity of the
Group.
3        Material Accounting Policy Information continued
Net physical commodities income
The Group enters into contracts to purchase physical commodities for the purpose of selling in the
near future (90 days on average) to generate a profit from the fluctuations in prices. In accordance with
IFRS 9, these contracts are recognized and measured at fair value, with the resulting fair value gains and
losses included in net physical commodities income. Contracts to purchase and sell physical commodities
are provisionally priced at the date that an initial invoice is issued. Provisionally priced contracts are
contracts where the price of the contract is subject to adjustments resulting from these contracts being
priced against a future quoted price after settlement of the underlying commodity. Provisionally priced
payables and receivables are measured initially and subsequently at their fair value through profit or loss
until settlement and are presented within trade payables in the trade and other payables and trade
debtors in the trade and other receivables line item in the statement of financial position.
(g) Tax
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The current tax payable is based on taxable profit for the year. Taxable profit differs from profit
before tax as reported in the income statement because it excludes items of income or expense that are
taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
Group’s liability for current tax is calculated using tax rates that have been enacted or substantively
enacted by the balance sheet date.
A provision is recognized for those matters for which the tax determination is uncertain but it is
considered probable that there will be a future outflow of funds to a tax authority. The provisions are
measured at the best estimate of the amount expected to become payable. The assessment is based on
the judgment of tax professionals within the Company supported by previous experience in respect of
such activities and in certain cases based on specialist independent tax advice.
3        Material Accounting Policy Information continued
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying
amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax
liabilities are generally recognized for all taxable temporary differences and deferred tax assets are
recognized to the extent that it is probable that future taxable profits will be available against which
deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the
temporary difference arises from the initial recognition of goodwill or from the initial recognition (other than
in a business combination) of other assets and liabilities in a transaction that affects neither the taxable
profit nor the accounting profit.
Deferred tax liabilities are recognized for taxable temporary differences arising on investments in
subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the
reversal of the temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future. Deferred tax assets arising from deductible temporary differences associated with
such investments and interests are only recognized to the extent that it is probable that there will be
sufficient taxable profits against which to utilize the benefits of the temporary differences and they are
expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of
the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability
is settled or the asset is realized based on tax laws and rates that have been enacted or substantively
enacted at the balance sheet date.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would
follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle
the carrying amount of its assets and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off
current tax assets against current tax liabilities and when they relate to income taxes levied by the same
tax authority and the Group intends to settle its current tax assets and liabilities on a net basis or to
realize the asset and settle the liability simultaneously.
3        Material Accounting Policy Information continued
Current tax and deferred tax for the year
Current and deferred tax are recognized in profit or loss, except when they relate to items that are
recognized in other comprehensive income or directly in equity, in which case, the current and deferred
tax are also recognized in other comprehensive income or directly in equity respectively, with the
exception of the coupon on AT1 securities in respect of which the coupon is charged to equity but the
related tax relief is taken to the income statement tax expense. Where current tax or deferred tax arises
from the initial accounting for a business combination, the tax effect is included in the accounting for the
business combination.
In determining whether uncertain tax positions exist, the Group assesses whether it is probable that
a tax authority will accept the uncertain tax treatment applied or proposed to be applied in its income tax
filings. The Group assesses for each uncertain tax treatment whether it should be considered
independently or whether some tax treatments should be considered together based on what the Group
believes provides a better prediction of the resolution of the uncertainty. The Group measures tax
uncertainties using its best estimate of likely outcomes for which it relies on estimates and assumptions
and may involve judgments about future events. Corporate activity as well as day to day operations may
give rise to tax uncertainties. The Group has determined, with the benefit of opinions from external tax
advisors and legal counsel, where appropriate, that it has provided for all tax liabilities that are probable to
arise from such activities. New information may become available that causes the Group to change its
judgment regarding the adequacy of existing tax liabilities. Such changes could result in incremental tax
liabilities which could have a material effect on cash flows, financial condition and results of operations.
Where the final tax outcome of these matters is different from the amounts that were originally estimated
such differences will impact the income tax and deferred tax provisions in the period in which such
determination is made.
(h) Impairment of non-financial assets
Impairment tests on goodwill and intangible assets with indefinite useful lives are undertaken
annually and whenever there is an indicator of impairment. Other non-financial assets are subject to
impairment tests whenever events or changes in circumstances indicate that their carrying amount may
not be recoverable.
The impairment test is carried out on the asset’s cash generating unit (i.e. the smallest group of
assets in which the asset belongs for which management measures separately identifiable cash flows).
Where the asset does not generate cash flows that are independent from other assets, the Group
estimates the recoverable amount of the cash generating unit to which the asset belongs. When a
reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to
individual cash generating units, or otherwise, they are allocated to the smallest group of cash generating
units for which a reasonable and consistent allocation can be identified.
The recoverable amount is the higher of fair value less costs of disposal and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and risks specific to
the asset for which the estimates of future cash flows have not been adjusted.
Where the carrying value of an asset exceeds its recoverable amount an impairment loss is
recognized in the income statement.
An impairment loss in respect of goodwill is not reversed. For non-financial assets other than
goodwill, an impairment loss is reversed only to the extent that the asset’s carrying amount does not
exceed the carrying amount that would have been determined, net of depreciation or amortization, if no
impairment loss had been recognized.
3        Material Accounting Policy Information continued
(i) Financial instruments
Initial recognition and measurement
Financial assets and financial liabilities are recognized in the Group’s statement of financial position
on a trade-date basis, being the date when the Group becomes a party to the contractual provisions of
the instrument.
The Group's financial instruments are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities (other than
financial assets and financial liabilities recognized at fair value through profit or loss) are added to or
deducted from the fair value of the financial instrument, as appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognized immediately in profit or loss.
Financial assets are classified based on the business model within which the asset is held and the
characteristics of the financial asset’s contractual cash flows. Financial assets are classified on initial
recognition based on the Group's assessment of the following criteria:
•the Group's business model for managing the asset; and
•whether the contractual cashflows represent solely payments of principal and interest (SPPI) on
the principal amount outstanding.
Following Group's assessment of this criteria, subsequent measurement is recognized at amortized
cost, fair value through other comprehensive income (FVOCI) or fair value through profit or loss (FVTPL).
Financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade
date basis. Regular way purchases or sales are purchases or sales of financial assets that require
delivery of assets within the timeframe established by regulation or convention in the marketplace.
All recognized financial assets are subsequently measured in their entirety at either amortized cost
or fair value, depending on the classification of the financial assets.
Financial assets measured at amortized cost
Financial assets are measured at amortized cost when the following conditions are satisfied:
•the financial asset is held within a business model whose objective is to hold financial assets in
order to collect contractual cash flows; and
•the contractual terms of the financial asset give rise on specified dates to cash flows that are SPPI
on the principal amount outstanding.
Additionally, financial assets are not measured at amortized cost if they have been classified as
designated at FVTPL.
Financial instruments measured at fair value through other comprehensive income (FVTOCI)
Financial assets that meet both of the following conditions and have not been designated as at
FVTPL are measured at FVTOCI:
•the financial asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling the financial assets; and
•the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
3        Material Accounting Policy Information continued
Financial instruments measured at fair value through profit or loss (FVTPL)
Financial assets that do not meet the criteria to be measured at amortized cost or FVTOCI are
subsequently measured at FVTPL. These include the following categories:
•financial assets that are held for active trading or held as part of a portfolio that is managed
together with short-term profit or position taking (held for trading (HFT)). This classification
includes all derivative financial assets, except those that are designated as hedging instruments in
qualifying hedge relationships and are classified as FVTPL:
•financial assets in a business model whose objective is achieved by managing the financial assets
on a fair value basis in order to realize gains and losses as opposed to a business model in which
the objective is to collect contractual cash flows (FVTPL):
•financial assets that fail the SPPI test (FVTPL): and
•financial assets that have been designated to be measured at fair value through profit or loss to
eliminate or significantly reduce an accounting mismatch.
The Group may make the following irrevocable election and/or designation at initial recognition of a
financial asset:
•the Group may irrevocably elect to present subsequent changes in fair value of an equity
investment in other comprehensive income if certain criteria are met; and
•the Group may irrevocably designate a debt investment that meets the amortized cost or FVTOCI
criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting
mismatch.
The following accounting policies apply to the subsequent measurement of financial assets.
3        Material Accounting Policy Information continued
Amortized cost and effective interest rate method
The effective interest rate method is a method of calculating the amortized cost of a debt
instrument and of allocating interest income over the relevant period.
For financial instruments other than purchased or originated credit-impaired financial assets, the
effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees
and points paid or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) excluding expected credit losses, through the expected life of the
debt instrument, or, where appropriate, a shorter period, to the gross carrying amount of the debt
instrument on initial recognition.
The amortized cost of a financial asset is the amount at which the financial asset is measured at
initial recognition minus the principal repayments, plus the cumulative amortization using the EIR method
of any difference between that initial amount and the maturity amount, adjusted for any loss allowance.
On the contrary, the gross carrying amount of a financial asset is the amortized cost of a financial asset
before adjusting for any loss allowance.
Interest income is recognized using the EIR method for debt instruments measured subsequently
at amortized cost and at FVTOCI. For financial instruments other than purchased or originated credit-
impaired financial assets, interest income is calculated by applying the EIR to the gross carrying amount
of a financial asset, except for financial assets that have subsequently become credit-impaired. For
financial assets that have subsequently become credit-impaired interest income is recognized by applying
the EIR to the amortized cost of the financial asset.
Investments in debt instruments classified as amortized cost
Debt instruments classified as amortized cost are subsequently measured using the EIR method
and are subject to impairment. Gains and losses are recognized in the income statement when the asset
is derecognized, modified or impaired. The Group’s financial assets held at amortized cost include US
treasury and agency bonds (classified as Treasury Instruments on the statement of financial position) and
trade receivables.
Investments in equity designated as at FVTOCI
On initial recognition, the Group made an irrevocable election (on an instrument-by-instrument
basis) to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not
permitted if the equity investment is held for trading or if it is contingent consideration recognized by an
acquirer in a business combination to which IFRS 3 Business Combinations ("IFRS 3") applies.
A financial asset is held for trading if:
•it has been acquired principally for the purpose of selling it in the near term; or
•on initial recognition it is part of a portfolio of identified financial instruments that the Group
manages together and has evidence of a recent actual pattern of short-term profit taking; or
•it is a derivative (except for a derivative that is a financial guarantee contract or a designated and
effective hedging instrument).
Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction
costs and are presented as investments in the statement of financial position. Subsequently, they are
measured at fair value with gains and losses arising from changes in fair value recognized in other
comprehensive income and accumulated in the revaluation reserve. The cumulative gain or loss will not
be reclassified to profit or loss on disposal of the equity investments; instead it will be transferred to
retained earnings. The Group has designated all investments in equity instruments that are not held for
trading as at FVTOCI on initial application of IFRS 9.
3        Material Accounting Policy Information continued
Financial assets at FVTPL
Financial assets that do not meet the criteria for being measured at amortized cost or FVTOCI are
measured at FVTPL. Specifically:
•investments in equity instruments are classified as at FVTPL, unless the Group designates an
equity investment that is neither held for trading nor a contingent consideration arising from a
business combination as at FVTOCI on initial recognition; and,
•debt instruments that do not meet the amortized cost criteria are classified as FVTPL, such as the
fixed income securities and reverse repurchase agreements which the Group holds to settle the
trading and market making obligations of the Group.
For financial assets that are measured at FVTPL, either through the business model test or
designation, interest income is recorded as a part of the changes in the fair value of the asset, and
including other components is recorded within net trading income. Investments in equity instruments
remeasured at FVTPL include equity securities and derivative instruments which have equities as the
underlier.
Impairment of financial assets
The Group recognizes a loss allowance for expected credit losses ('ECL') on investments in debt
instruments that are measured at amortized cost or at FVTOCI. No impairment loss is recognized for
investments in equity instruments. The amount of ECL is updated at each reporting date to reflect
changes in credit risk since initial recognition of the respective financial instrument.
The Group always recognizes lifetime ECL for trade receivables. ECL are a probability‐weighted
estimate of credit losses based on both quantitative and qualitative information and analysis, based on
the Group’s historical experience and informed credit assessment and forward-looking expectation.
For all other financial instruments, the Group recognizes lifetime ECL when there has been a
significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the
financial instrument has not increased significantly since initial recognition, the Group measures the loss
allowance for that financial instrument at an amount equal to 12-month ECL. The assessment of whether
lifetime ECL should be recognized is based on significant increases in the likelihood or risk of a default
occurring since initial recognition instead of on evidence of a financial asset being credit-impaired at the
reporting date or an actual default occurring. Lifetime ECL represents the ECL that will result from all
possible default events over the expected life of a financial instrument. In contrast, 12-month ECL
represents the portion of lifetime ECL that is expected to result from default events on a financial
instrument that is possible within 12 months after the reporting date.
3        Material Accounting Policy Information continued
Measurement and recognition of expected credit losses
At the reporting date, an allowance is required for the 12-month (Stage 1) ECL. If the credit risk has
significantly increased since initial recognition (Stage 2), or if the financial instrument is credit-impaired
(Stage 3), an allowance (or provision) is recognized for the lifetime ECL.
The measurement of ECL is a function of the probability of default, loss given default (i.e. the
magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability
of default and loss given default is based on historical data adjusted by forward-looking information as
indicated above. As for the exposure at default, for financial assets, this is represented by the assets’
gross carrying amount at the reporting date, less any collateral held.
For financial assets, the ECL is estimated as the difference between all contractual cash flows that
are due to the Group in accordance with the contract and all the cash flows that the Group expects to
receive, discounted at the original effective interest rate.
The grouping is regularly reviewed by management to ensure the constituents of each group
continue to share similar credit risk characteristics.
Where lifetime ECL is measured on a collective basis to cater for cases where evidence of
significant increases in credit risk at the individual instrument level may not yet be available, the financial
instruments are grouped on the following basis:
•nature of financial instruments; and
•external credit ratings where available.
If the Group has measured the loss allowance for a financial instrument at an amount equal to
lifetime ECL in the previous reporting period, but determines at the current reporting date that the
conditions for lifetime ECL are no longer met, the Group measures the loss allowance at an amount equal
to 12-month ECL at the current reporting date.
The Group recognizes an impairment gain or loss in profit or loss for all financial instruments with a
corresponding adjustment to their carrying amount through a loss allowance account, except for
investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized
in other comprehensive income and accumulated in the revaluation reserve, and does not reduce the
carrying amount in the statement of financial position.
Simplified approach
The Group adopts a simplified approach for trade receivables whereby allowances are always
equal to lifetime ECL. The ECL on trade receivables are estimated using a provision matrix by reference
to historical credit losses experience adjusted for current and expected future economic conditions. When
a trade receivable balance is more than 180 days past due, the Group further performs a qualitative
review of the debtor analyzing factors such as the debtor’s current financial position, past due days, cash
collection history and internal credit ratings to determine whether the Group has reasonable and
supportable information to apply a higher credit loss rate adjusted by forward-looking information.
3        Material Accounting Policy Information continued
Significant increases in credit risk
In assessing whether the credit risk on a financial instrument has increased significantly since initial
recognition, the Group compares the risk of a default occurring on the financial instrument at the reporting
date with the risk of a default occurring on the financial instrument as at the date of initial recognition. In
making this assessment, the Group considers both quantitative and qualitative information that is
reasonable and supportable, including historical experience and forward-looking information that is
available without undue cost or effort. 
In particular, the following information is taken into account when assessing whether credit risk has
increased significantly since initial recognition:
•an actual or expected significant deterioration in the financial instrument’s external (if available) or
internal credit rating; and
•significant deterioration in external market indicators of credit risk for a particular financial
instrument.
The Group assumes that the credit risk on a financial instrument has not increased significantly
since initial recognition if the financial instrument is determined to have low credit risk, based on all of the
following: (i) the financial instrument has a low risk of default in accordance with either internal or external
credit ratings; (ii) the borrower has a strong capacity to meet its contractual cash flow obligations in the
near term; and (iii) adverse changes in economic and business conditions in the long term may, but will
not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations. The Group
regularly monitors the effectiveness of the criteria used to identify whether there has been a significant
increase in credit risk and revises them as appropriate to ensure that each criterion is capable of
identifying a significant increase in credit risk before the amount becomes past due.
Definition of default
The Group considers the following as constituting an event of default for internal credit risk
management purposes as historical experience indicates that receivables and other assets that meet
either of the following criteria are generally not recoverable:
•when there is a breach of financial covenants by the counterparty; or
•information developed internally or obtained from external sources indicates that the debtor is
unlikely to pay its creditors, including the Group, in full (without taking into account any collateral
held by the Group) or partially.
Credit-impaired financial assets
A financial asset is credit-impaired when one or more events that have a detrimental impact on the
estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-
impaired includes observable data about the following events:
•significant financial difficulty of the issuer or the borrower;
•a breach of contract, such as default or past due event;
•it is becoming probable that the borrower will enter bankruptcy or other financial reorganization; or
•the disappearance of an active market for that financial asset because of financial difficulties.
3        Material Accounting Policy Information continued
Write-off policy
The Group writes off a financial asset when there is information indicating that the counterparty is in
severe financial difficulty and there is no reasonable expectation of recovery, e.g. when the counterparty
has been placed under liquidation or has entered into bankruptcy proceedings. Financial assets written off
may still be subject to collection activities under the Group’s recovery procedures, taking into account
legal advice where appropriate. Any recoveries made are recognized in profit or loss.
Presentation of impairment
The Group recognizes an impairment gain or loss in profit or loss for all financial instruments with a
corresponding adjustment to their carrying amount through a loss allowance account, except for
investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized
in other comprehensive income and accumulated in the revaluation reserve, and does not reduce the
carrying amount of the financial asset in the statement of financial position.
Provision for credit losses related to trade and other receivables, including settlement balances and
deposits paid for securities borrowed are presented on the face of the income statement.
Derecognition of financial assets
The Group derecognizes a financial asset only when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks
and rewards of ownership and continues to control the transferred asset, the Group recognizes its
retained interest in the asset and an associated liability for amounts it may have to pay. If the Group
retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group
continues to recognize the financial asset and also recognizes a collateralized borrowing for the proceeds
received.
On derecognition of a financial asset measured at amortized cost, the difference between the
asset’s carrying amount and the sum of the consideration received and receivable is recognized in the
income statement. In addition, on derecognition of an investment in a debt instrument classified as at
FVTOCI, the cumulative gain or loss previously accumulated in the revaluation reserve is reclassified to
the income statement. In contrast, on derecognition of an investment in equity instrument which the
Group has elected on initial recognition to measure at FVTOCI, the cumulative gain or loss previously
accumulated in the revaluation reserve is not reclassified to the income statement but is transferred to
retained earnings.
Financial liabilities
All financial liabilities are measured subsequently at amortized cost using the effective interest rate
method or at FVTPL.
Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition
or when the continuing involvement approach applies and financial guarantee contracts issued by the
Group, are measured in accordance with the specific accounting policies set out below.
Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL when the financial liability is (i) contingent
consideration recognized by an acquirer in a business combination to which IFRS 3 applies, (ii) held for
trading or (iii) designated as at FVTPL.
3        Material Accounting Policy Information continued
A financial liability is classified as held for trading if:
•it has been acquired principally for the purpose of repurchasing it in the near term; or
•on initial recognition it is part of a portfolio of identified financial instruments that the Group
manages together and has a recent actual pattern of short-term profit-taking; or
•it is a derivative, except for a derivative that is a financial guarantee contract or a designated and
effective hedging instrument.
A financial liability other than a financial liability held for trading or contingent consideration of an
acquirer in a business combination may be designated as at FVTPL upon initial recognition if:
•such designation eliminates or significantly reduces a measurement or recognition inconsistency
that would otherwise arise; or
•the financial liability forms part of a group of financial assets or financial liabilities or both, which is
managed and its performance is evaluated on a fair value basis, in accordance with the Group’s
documented risk management or investment strategy, and information about the grouping is
provided internally on that basis; or
•it forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the
entire combined contract to be designated at FVTPL.
Financial liabilities at FVTPL are measured at fair value, with any gains or losses arising on
changes in fair value recognized in the income statement to the extent that they are not part of a
designated hedging relationship. The interest expense on structured notes designated at FVTPL is
recognized in interest expense based on the implied variable market interest rate. The fair value
associated with the remaining underlying risk is recognized in net trading income.
In respect of financial liabilities that are designated as at FVTPL (i.e. structured notes issued,
repurchase agreements and stock lending), the amount of change in the fair value of the financial liability
that is attributable to changes in the credit risk of that liability is recognized in other comprehensive
income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive
income would create or enlarge an accounting mismatch in the income statement. The remaining amount
of change in the fair value of the liability is recognized in the income statement. Changes in the fair value
attributable to a financial liability’s credit risk that are recognized in other comprehensive income are not
subsequently reclassified to the income statement. Instead, they are transferred to retained earnings
upon derecognition of the financial liability.
Financial liabilities measured at amortized cost
Financial liabilities that are not (i) contingent consideration of an acquirer in a business
combination, (ii) held-for-trading, or (iii) designated at FVTPL, are measured subsequently at amortized
cost using the effective interest rate method.
3        Material Accounting Policy Information continued
Derecognition of financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged, cancelled or
expired. The difference between the carrying amount of the financial liability derecognized and the
consideration paid and payable is recognized in the income statement.
When the Group exchanges with the existing lender one debt instrument into another one with
substantially different terms, such exchange is accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability. Similarly the Group accounts for substantial
modification of terms of an existing liability or part of it as an extinguishment of the original financial
liability and the recognition of a new liability. The terms are substantially different if the discounted present
value of the cash flows under the new terms, including any fees paid net of any fees received and
discounted using the original effective rate, is at least 10% different from the discounted present value of
the remaining cash flows of the original financial liability. If the modification is not substantial, the
difference between: (i) the carrying amount of the liability before the modification; and (ii) the present
value of the cash flows after modification should be recognized in the income statement as the
modification gain or loss.
Offsetting of financial assets and liabilities
Financial assets and liabilities are offset and the net amount is reported in the statement of financial
position if there is a currently enforceable legal right to offset the recognized amounts and there is an
intention and ability to settle on a net basis, or to realize the assets and liabilities simultaneously.
The financial assets and liabilities which met the requirements for offsetting have been presented in
note 34(c).
Derivative instruments
The Group uses derivative financial instruments, such as forward currency contracts, OTC precious
and base metal contracts, agriculture contracts, energy contracts and equities. Such derivative financial
instruments are initially recognized at fair value on the date on which a derivative contract is entered into
and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair
value is positive and as financial liabilities when the fair value is negative.
This includes embedded derivatives in a hybrid contract, with a financial liability or non-financial
host, is separated from the host and accounted for as a separate derivative if: the economic
characteristics and risks are not closely related to the host; a separate instrument with the same terms as
the embedded derivative would meet the definition of a derivative; and the hybrid contract is not
measured at fair value through profit or loss. Embedded derivatives are measured at fair value with
changes in fair value recognized in profit or loss. Reassessment only occurs if there is either a change in
the terms of the contract that significantly modifies the cash flows that would otherwise be required or a
reclassification of a financial asset out of the fair value through profit or loss category.
The Group utilizes the services of a prime broker to enter into derivative contracts that are used to
economically hedge its structured notes issuance business. The agreement provides for net settlement of
daily margin calls and in addition, should there be a default event, this would also be settled on a net
basis. On this basis the Group has determined that the balance representing cash held at the prime
broker and various derivative instruments represent one unit of account and should be shown within
‘Derivative Assets’ in the statement of financial position.
3        Material Accounting Policy Information continued
Issued debt and equity instruments
The Group applies IAS 32 Financial Instruments: Presentation to determine whether an instrument
is either a financial liability (debt) or equity. Issued financial instruments or their components are classified
as liabilities if the contractual arrangement results in the Group having an unconditional obligation to
either deliver cash or another financial asset, or a variable number of equity shares, to the holder of the
instrument. If this is not the case, the instrument is generally an equity instrument and the proceeds
included in equity, net of transaction costs. Dividends and other returns to equity holders are recognized
(other than for AT1 securities) when approved for payment by the Board of Directors and treated as a
deduction from equity. Distributions paid to holders of AT1 securities are shown as dividends and are
treated as a deduction from equity.
Debt securities are the Group's issued debt instruments which are comprised of hybrid financial
instruments and vanilla debt instrument. Structured notes issued are hybrid financial instruments and are
composed of debt components and embedded derivatives and are designated as FVTPL. Changes in fair
value are recognized within net trading income except for changes related to the Group’s own credit risk
which are recognized in other comprehensive income and interest related to the hybrid debt securities is
presented within interest expense. Vanilla debt instruments are presented within debt securities in line
with their maturity profile and have no other embedded or linked instruments. The Group presents the
hedged interest expense related to vanilla debt instruments through interest expense.
(j) Inventories
The Group applies the broker-dealer exemption to its inventories stated in paragraph 3 of IAS 2,
Inventories. The Group has physical holdings of commodities held for trading purposes. These are
measured at fair value less costs to sell and relate to the recycled metals trading division. The cost of
such inventories including the changes in their fair value is recognized within "Net physical commodities
income" in the consolidated income statement.
The Group holds cryptocurrencies, both for its own account in order to generate a return, and to
complement its cryptocurrency client offerings. The Group does not act as a custodian for crypto and,
other than in limited circumstances, does not allow clients to provide crypto as security for client activity.
The Group holds these cryptocurrencies in either a hot wallet at Fireblocks (kept online) or in cold storage
at a crypto custodian (kept offline). The Group classifies cryptocurrency holdings as inventories on the
statement of financial position measured at fair value less costs to sell.
The Group has holdings of carbon emission certificates held for trading purposes. These are held
at fair value less costs to sell. The cost of such inventories including the changes in their fair value is
recognized within "Net trading income' in the consolidated income statement.
(k) Physical commodity contracts
The Group trades in physical commodity contracts for the purposes of trading. As such, these
contracts meet the definition of a derivative financial instrument and therefore where outstanding at year
end are recorded at fair value on the statement of financial position with changes in fair value reflected
within net physical commodities income.
3        Material Accounting Policy Information continued
(l) Derivative financial instruments and hedging activities
Derivatives are initially recognized at fair value on the date a derivative contract is entered into and
are subsequently remeasured to their fair value at the end of the report period. The accounting for
subsequent changes in fair value depends on whether the derivative is designated as a hedging
instrument and, if so, the nature of the item being hedged.
The Group designates certain derivatives as either:
•Fair value hedges: Hedges of the change in the fair value of recognized assets or liabilities or
unidentified firm commitments; or
•Cash flow hedges: Hedges of a particular risks associated with the cash flows of recognized
assets and liabilities and highly probable forecast transactions.
At the inception of the hedge relationship, the Group documents the economic relationship between
the hedging instrument and the hedged item, including the risk management objective and strategy for
undertaking the hedge. The Group also documents its assessment, both at hedge inception and on an
ongoing basis, of whether the derivatives that are used in hedging transactions have been "highly
effective" in offsetting changes in fair values or cash flows of hedged items.
Fair value hedges
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are
recorded in the consolidated income statement, together with any changes in the fair value of the hedged
asset or liability that are attributable to the hedged risk. The gain or loss relating to the effective portion of
the hedge is recognized in the consolidated income statement within the same line item as the hedged
item.
Cash flow hedges
The effective portion of changes in the fair value of derivatives that are designated and qualify as
cash flow hedges is recognized in other comprehensive income (OCI) and accumulated in the cash flow
hedge reserve within equity. The gain or loss relating to the ineffective portion is recognized immediately
in the consolidated income statement.
Amounts accumulated in equity are reclassified to the consolidated income statement in the
periods when the hedged item affects profit or loss (for example, when the forecasted sale that is hedged
takes place). When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria
for hedge accounting, any accumulative gain or loss existing in equity at that time remains in equity and is
recognized when the forecasted transaction is ultimately recognized in the consolidated income
statement.
As at 31 December 2025 the Group did not have any net investment hedge relationships.
Derivatives that do not qualify for hedge accounting
Certain derivative instruments do not qualify for hedge accounting or the Group chooses not to
designate them as such. Changes in the fair value of any derivative instruments that does not qualify for
hedge accounting are recognized immediately in the consolidated income statement within net trading
income.
3        Material Accounting Policy Information continued
(m) Reverse repurchase agreements, repurchase agreements, stock borrowing and stock
lending
As part of the Group's trading, financing and liquidity management activities, the Group purchases
debt securities under agreements to resell (a reverse repurchase agreement – ‘reverse repo’), sells debt
securities under agreements to repurchase (a repurchase agreement - ‘repo’), enters into stock borrowing
transactions, and stock lending transactions which are classified as follows:
Trading
•The Group's reverse repo and stock borrowing transactions which are used to meet counterparty
needs under matched book principal strategies and market making trading activities are considered to
form part of the Group's held for trading business model and are measured at fair value through profit or
loss.  The Group’s repos and stock lending transactions which are used to finance securities and support
the facilitation of client activity are designated as financial liabilities at fair value through profit or loss to
reflect the fact that both assets and liabilities are managed and evaluated together on a fair value basis
and therefore better reflects the economic reality and eliminates an accounting mismatch.
•The Group records the income statement impact of these reverse repo, repo, stock borrowing
and stock lending activities (collectively referred to as the 'Securities Financing business') as net trading
income.  Net trading income includes the realized transactional purchases and sales as well as any
residual interest income and expense arising from these structures. 
3        Material Accounting Policy Information continued
(m) Reverse repurchase agreements, repurchase agreements, stock borrowing and stock lending
continued
Funding and Liquidity
•The portion of the Group's reverse repo, repo, stock borrowing and stock lending transactions
which are entered into for own purposes such as investment of excess cash or raising funding (also
referred to as 'For Needs' funding) are measured at amortized cost. They are held in a business model to
collect contractual cash flows and meet contractual payment obligations and are therefore recognized at
amortized cost.
•The Group records the income statement impact of these reverse repo, repo, stock borrowing
and stock lending activities as net interest income. 
Collateral
It is the Group’s policy to receive or pledge cash or securities (non-cash collateral) to collateralize
such agreements and transactions in accordance with contractual arrangements. The Group monitors the
fair value of its collateral daily, requiring counterparties to deposit additional collateral or return collateral
pledged.
Any non-cash collateral received is not included on the statement of financial position as the Group
does not acquire the risk and rewards of ownership, however they are recorded off-balance sheet as
collateral received. Cash consideration paid (or cash collateral provided) is accounted for as a loan asset
at amortized cost unless it is mandatorily classified as fair value through profit or loss. Whereas the
securities and stock are retained on the balance sheet as the Group retains substantially all the risk and
rewards of ownership and these securities and stock are disclosed as pledged collateral. Cash
consideration received (or cash collateral received) is accounted for as a financial liability at amortized
cost unless it is irrevocably designated at fair value through profit or loss at initial recognition.
The treatment of the non-cash collateral received or pledged remains consistent irrespective of the
business model.
3        Material Accounting Policy Information continued
(n) Cash and cash equivalents
The Group considers cash held at banks and all highly liquid investments not held for trading
purposes, with original or acquired maturities of 90 days or less, including certificates of deposit, to be
cash and cash equivalents. Cash and cash equivalents not deposited with or pledged to broker-dealers,
clearing organizations, counterparties or segregated under federal or other regulations is recognized on
the statement of financial position.
Cash flow classification
Cash flows from debt securities issued and redeemed which support Group’s ordinary funding and
liquidity management activities that support the Group’s revenue-generating operations are classified as
cash flows from operating activities in the Group’s statement of cash flows. Cash flows from the issuance
and redemption of debt instruments that represent capital or structural funding of the Group, including
instruments issued to satisfy regulatory capital requirements or other debt instruments that form part of
the Group’s long-term capital structure, are classified as cash flows from financing activities in the Group’s
statement of cash flows. For more information on the components of the Group's debt securities refer to
Note 22.
Client money
Pursuant to the requirements of the Commodity Exchange Act and Commission Regulation 30.7 of
the U.S. Commodity Futures Trading Commission (‘CFTC’) in the U.S. the Markets in Financial
Instruments Implementing Directive 2006/73/EC underpinning the Client Asset (‘CASS’) rules in the
Financial Conduct Authority (‘FCA’) handbook in the U.K. and the Securities & Futures Act in Singapore,
funds deposited by clients relating to futures and options on futures contracts in regulated commodities
must be carried in separate accounts, which are designated as segregated or secured client accounts
(which are off-balance sheet and further disclosed under note 28 "Client Money"). Additionally, in
accordance with rule 15c3-3 of the Securities Exchange Act of 1934, the Group maintains separate
accounts for the exclusive benefit of securities clients and proprietary accounts of broker dealers. Rule
15c3-3 requires the Group to maintain special reserve bank accounts for the exclusive benefit of
securities clients and the proprietary accounts of broker dealers. The deposits in segregated client
accounts and the special reserve bank accounts are not commingled with Group funds. Under the FCA's
rules certain categories of clients may choose to opt-out of segregation.
Safeguarded funds
In accordance with Regulation 23 of the Payment Services Regulations 2017, the Group is required
to safeguard funds received from or on behalf of payment service users for the execution of payment
transactions. Safeguarded funds are held in segregated accounts at authorized credit institutions
regulated by the Prudential Regulations Authority and the FCA. These accounts are designated as
safeguarding accounts and are used exclusively for holding customer funds. The Group holds these funds
in a custodial capacity on behalf of payment service users and has no control over these funds. The funds
are held for the benefit of payment service users and are protected from claims by the Group's creditors.
Accordingly, safeguarded funds are not recognized on the Group's statement of financial position.
3        Material Accounting Policy Information continued
(o) Share-based payments
The Group operates various share-based compensation schemes.
Equity-settled share-based payments to employees and others providing similar services are
measured at the fair value of the equity instruments at the grant date. The fair value excludes the effect
of non-market-based vesting conditions. Details regarding the determination of the fair value of equity-
settled share-based transactions are set out in note 33. The fair value determined at the grant date of the
equity-settled share-based payments is expensed on a straight line basis over the vesting period, based
on the Group's estimate of the number of equity instruments that will eventually vest.
The expense is recognized in compensation and benefits, together with a corresponding increase
in equity. At each reporting date, the Group revises its estimate of the number of equity instruments
expected to vest as a result of the effect of non-market-based vesting conditions. The impact of the
revision on the original estimates, if any, is recognized in profit or loss such that the cumulative expense
reflects the revised estimate, with a corresponding adjustment to reserves.
For cash-settled share-based payments, a liability is recognized for the goods or services acquired,
measured initially at the fair value of the liability. At each reporting date until the liability is settled, and at
the date of settlement, the fair value of the liability is remeasured, with any changes in fair value
recognized in the income statement for the year.
(p) Trade and other receivables
Trade and other receivables predominantly comprise financial assets that are initially recognized at
fair value and subsequently measured at amortized cost in accordance with the Group’s financial
instruments policy set out in note 3(i).  These balances mainly comprise Amounts due from exchanges,
clearing houses and other counterparties, Amounts receivable from clients, Settlement balances,
Amounts due from Prime Brokers, Trade Debtors and Default funds and deposits.
Interest income is recognized using the effective interest method. Impairment is assessed under
the expected credit loss model described in note 3(i), with the simplified approach applied to trade
receivables.
The Group also holds a small number of receivable balances that are measured at fair value
through profit or loss or that represent non-financial assets. Further information on these items is provided
in the related note to the financial statements (see note 25).
(q) Trade and other payables
Trade and other payables predominantly comprise financial liabilities that are initially recognized at
fair value and subsequently measured at amortized cost in accordance with the Group’s financial
instruments policy in note 3(i). These balances mainly consist of Amounts due to exchanges, clearing
houses and other counterparties, Amounts payable to clients and Amounts due to Prime Brokers.
The Group also holds a small number of payable balances that are measured at fair value through
profit or loss or that represents non-financial liabilities, such as accruals and tax balances, which are
recognized and measured in accordance with the applicable accounting standards. Further information on
the composition of trade and other payables is provided in the related note to the financial statements
(see note 26).
3        Material Accounting Policy Information continued
(r) Non-current assets held for sale and associated liabilities
The Group applies IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. Non-
current assets (or disposal groups) are classified as held for sale when their carrying amount is expected
to be recovered principally through a sale transaction rather than through continuing use.
In order to be classified as held for sale, the asset (or disposal group) must be available for
immediate sale in its present condition, subject only to terms that are usual and customary for such sales,
and the sale must be highly probable. When a non-current asset is acquired exclusively with a view to its
subsequent disposal, the asset (or disposal group) can be classified as held for sale at the acquisition
date only if the sale is anticipated to be complete within one year and it is highly probable that any
remaining classification criteria will be satisfied shortly after the acquisition.
Non-current assets (or disposal groups) classified as held for sale are measured at the lower of
their carrying amount and fair value less costs to sell. Newly acquired asset (or disposal group), as part of
a business combination, that meet the criteria to be classified as held for sale shall be measured at fair
value less cost to sell. Assets classified as held for sale and related liabilities are presented separately on
the consolidated statement of financial position.