DISCLOSURE OF OFFSETTING ASSETS AND LIABILITIES, COLLATERAL, ENCUMBERED ASSETS, AND REPURCHASE AGREEMENTS (Tables)

6 Months Ended

Mar. 31, 2016

Disclosure of Offsetting Assets and Liabilities, Collateral, Encumbered Assets and Repurchase Agreements [Abstract]

The following table presents information about the financial and derivative instruments that are offset or subject to an enforceable master netting arrangement or other similar agreement as of the dates indicated:



										Gross amounts not offset in the Statements of Financial Condition
	Gross amounts of recognized assets (liabilities)			Gross amounts offset in the Statements of Financial Condition			Net amounts presented in the Statements of Financial Condition			Financial instruments				Cash (received) paid			Net amount
	(in thousands)
As of March 31, 2016:
Assets
Securities purchased under agreements to resell and other collateralized financings	$	428,864		$	—		$	428,864		$	(428,864	)	⁽¹⁾	$	—		$	—
Derivatives - interest rate contracts⁽²⁾	138,228			(96,630		)	41,598			(17,378		)		—			24,220
Derivative instruments associated with offsetting matched book positions	396,163			—			396,163			(396,163		)	⁽³⁾	—			—
Derivatives - forward foreign exchange contracts⁽⁴⁾	2,938			—			2,938			—				—			2,938
Derivatives - forward foreign exchange contracts ⁽⁵⁾	9,677			—			9,677			—				—			9,677
Stock borrowed	123,156			—			123,156			(119,957		)		—			3,199
Total assets	$	1,099,026		$	(96,630	)	$	1,002,396		$	(962,362	)		$	—		$	40,034
Liabilities
Securities sold under agreements to repurchase	$	(190,679	)	$	—		$	(190,679	)	$	190,679		⁽⁶⁾	$	—		$	—
Derivatives - interest rate contracts⁽²⁾	(130,702		)	128,002			(2,700		)	—				2,700		⁽⁷⁾	—
Derivative instruments associated with offsetting matched book positions	(396,163		)	—			(396,163		)	396,163			⁽³⁾	—			—
Derivatives - forward foreign exchange contracts⁽⁴⁾	(201		)	—			(201		)	—				—			(201		)
Derivatives - forward foreign exchange contracts⁽⁵⁾	(4,939		)	—			(4,939		)	—				—			(4,939		)
Derivatives - RJ Bank Interest Hedges	(20,803		)	—			(20,803		)	—				20,803		⁽⁸⁾	—
Stock loaned	(610,476		)	—			(610,476		)	599,876				—			(10,600		)
Total liabilities	$	(1,353,963	)	$	128,002		$	(1,225,961	)	$	1,186,718			$	23,503		$	(15,740	)
As of September 30, 2015:
Assets
Securities purchased under agreements to resell and other collateralized financings	$	474,144		$	—		$	474,144		$	(474,144	)	⁽¹⁾	$	—		$	—
Derivatives - interest rate contracts⁽²⁾	130,095			(90,621		)	39,474			(12,609		)		—			26,865
Derivative instruments associated with offsetting matched book positions	389,457			—			389,457			(389,457		)	⁽³⁾	—			—
Derivatives - forward foreign exchange contracts⁽⁷⁾	917			—			917			—				—			917
Derivatives - forward foreign exchange contracts⁽⁴⁾	2,612			—			2,612			—				—			2,612
Stock borrowed	124,373			—			124,373			(120,957		)		—			3,416
Total assets	$	1,121,598		$	(90,621	)	$	1,030,977		$	(997,167	)		$	—		$	33,810
Liabilities
Securities sold under agreements to repurchase	$	(332,536	)	$	—		$	(332,536	)	$	332,536		⁽⁶⁾	$	—		$	—
Derivatives - interest rate contracts⁽²⁾	(104,255		)	88,881			(15,374		)	3,528			⁽⁷⁾	7,399		⁽⁷⁾	(4,447		)
Derivative instruments associated with offsetting matched book positions	(389,457		)	—			(389,457		)	389,457			⁽³⁾	—			—
Derivatives - forward foreign exchange contracts⁽⁴⁾	(4,865		)	—			(4,865		)	—				—			(4,865		)
Derivatives - RJ Bank Interest Hedges	(7,545		)	—			(7,545		)	—				7,545		⁽⁸⁾	—
Stock loaned	(478,573		)	—			(478,573		)	472,379				—			(6,194		)
Total liabilities	$	(1,317,231	)	$	88,881		$	(1,228,350	)	$	1,197,900			$	14,944		$	(15,506	)

The text of the footnotes in the above table are on the following page.

The text of the footnotes to the table on the previous page are as follows:


(1)	We are over-collateralized since the actual amount of financial instruments pledged as collateral for securities purchased under agreements to resell and other collateralized financings amounts to $446.7 million and $499.3 million as of March 31, 2016 and September 30, 2015, respectively.


(2)	Derivatives - interest rate contracts are included in Trading instruments on our Condensed Consolidated Statements of Financial Condition. See Note 13 for additional information.

(3)

Although these derivative arrangements do not meet the definition of a master netting arrangement as specified by GAAP, the nature of the agreement with the third party intermediary include terms that are similar to a master netting agreement, thus we present the offsetting amounts net in this table. See Note 13 for further discussion of the “pass through” structure of the derivative instruments associated with Offsetting Matched Book Derivatives Operations.

(4)

These contracts are associated with RJ Bank’s activities to hedge its foreign currency exposure. As of March 31, 2016, the fair value of the forward foreign exchange contract derivatives are in both an asset and a liability position and are included in prepaid expenses and other assets and trade and other payables, respectively, on our Condensed Consolidated Statements of Financial Condition. As of September 30, 2015 the fair value of the forward foreign exchange contract derivatives are in an asset position and are included in prepaid expenses and other assets on our Condensed Consolidated Statements of Financial Condition. See Note 13 for additional information.


(5)	See Note 13 for additional information on our forward foreign exchange contract derivatives associated with our OTC Derivatives Operations.


(6)	We are over-collateralized since the actual amount of financial instruments pledged as collateral for securities sold under agreements to repurchase amounts to $200 million and $346.1 million as of March 31, 2016 and September 30, 2015, respectively.

(7)

For the portion of these derivative contracts that are transacted through an exchange, the nature of the agreement with the clearing member exchange include terms that are similar to a master netting agreement, thus we are over-collateralized as of March 31, 2016 and September 30, 2015 since the actual amount of cash and securities deposited with the exchange for these derivative contracts is $10.9 million and $17.6 million, respectively. These deposits are a component of deposits with clearing organizations on our Condensed Consolidated Statements of Financial Condition. See Note 13 for additional information.

(8)

Derivatives - RJ Bank Interest Hedges are included in trade and other payables on our Condensed Consolidated Statements of Financial Condition. See Note 13 for additional information. The RJ Bank Interest Hedges are transacted through an exchange. The nature of the agreement with the clearing member exchange includes terms that are similar to a master netting agreement, thus present offsetting deposits paid to the exchange associated with these contracts. These deposits are included in deposits with clearing organizations on our Condensed Consolidated Statements of Financial Condition.

Offsetting liabilities



										Gross amounts not offset in the Statements of Financial Condition
	Gross amounts of recognized assets (liabilities)			Gross amounts offset in the Statements of Financial Condition			Net amounts presented in the Statements of Financial Condition			Financial instruments				Cash (received) paid			Net amount
	(in thousands)
As of March 31, 2016:
Assets
Securities purchased under agreements to resell and other collateralized financings	$	428,864		$	—		$	428,864		$	(428,864	)	⁽¹⁾	$	—		$	—
Derivatives - interest rate contracts⁽²⁾	138,228			(96,630		)	41,598			(17,378		)		—			24,220
Derivative instruments associated with offsetting matched book positions	396,163			—			396,163			(396,163		)	⁽³⁾	—			—
Derivatives - forward foreign exchange contracts⁽⁴⁾	2,938			—			2,938			—				—			2,938
Derivatives - forward foreign exchange contracts ⁽⁵⁾	9,677			—			9,677			—				—			9,677
Stock borrowed	123,156			—			123,156			(119,957		)		—			3,199
Total assets	$	1,099,026		$	(96,630	)	$	1,002,396		$	(962,362	)		$	—		$	40,034
Liabilities
Securities sold under agreements to repurchase	$	(190,679	)	$	—		$	(190,679	)	$	190,679		⁽⁶⁾	$	—		$	—
Derivatives - interest rate contracts⁽²⁾	(130,702		)	128,002			(2,700		)	—				2,700		⁽⁷⁾	—
Derivative instruments associated with offsetting matched book positions	(396,163		)	—			(396,163		)	396,163			⁽³⁾	—			—
Derivatives - forward foreign exchange contracts⁽⁴⁾	(201		)	—			(201		)	—				—			(201		)
Derivatives - forward foreign exchange contracts⁽⁵⁾	(4,939		)	—			(4,939		)	—				—			(4,939		)
Derivatives - RJ Bank Interest Hedges	(20,803		)	—			(20,803		)	—				20,803		⁽⁸⁾	—
Stock loaned	(610,476		)	—			(610,476		)	599,876				—			(10,600		)
Total liabilities	$	(1,353,963	)	$	128,002		$	(1,225,961	)	$	1,186,718			$	23,503		$	(15,740	)
As of September 30, 2015:
Assets
Securities purchased under agreements to resell and other collateralized financings	$	474,144		$	—		$	474,144		$	(474,144	)	⁽¹⁾	$	—		$	—
Derivatives - interest rate contracts⁽²⁾	130,095			(90,621		)	39,474			(12,609		)		—			26,865
Derivative instruments associated with offsetting matched book positions	389,457			—			389,457			(389,457		)	⁽³⁾	—			—
Derivatives - forward foreign exchange contracts⁽⁷⁾	917			—			917			—				—			917
Derivatives - forward foreign exchange contracts⁽⁴⁾	2,612			—			2,612			—				—			2,612
Stock borrowed	124,373			—			124,373			(120,957		)		—			3,416
Total assets	$	1,121,598		$	(90,621	)	$	1,030,977		$	(997,167	)		$	—		$	33,810
Liabilities
Securities sold under agreements to repurchase	$	(332,536	)	$	—		$	(332,536	)	$	332,536		⁽⁶⁾	$	—		$	—
Derivatives - interest rate contracts⁽²⁾	(104,255		)	88,881			(15,374		)	3,528			⁽⁷⁾	7,399		⁽⁷⁾	(4,447		)
Derivative instruments associated with offsetting matched book positions	(389,457		)	—			(389,457		)	389,457			⁽³⁾	—			—
Derivatives - forward foreign exchange contracts⁽⁴⁾	(4,865		)	—			(4,865		)	—				—			(4,865		)
Derivatives - RJ Bank Interest Hedges	(7,545		)	—			(7,545		)	—				7,545		⁽⁸⁾	—
Stock loaned	(478,573		)	—			(478,573		)	472,379				—			(6,194		)
Total liabilities	$	(1,317,231	)	$	88,881		$	(1,228,350	)	$	1,197,900			$	14,944		$	(15,506	)

The text of the footnotes in the above table are on the following page.

The text of the footnotes to the table on the previous page are as follows:


(1)	We are over-collateralized since the actual amount of financial instruments pledged as collateral for securities purchased under agreements to resell and other collateralized financings amounts to $446.7 million and $499.3 million as of March 31, 2016 and September 30, 2015, respectively.


(2)	Derivatives - interest rate contracts are included in Trading instruments on our Condensed Consolidated Statements of Financial Condition. See Note 13 for additional information.

(3)

(4)


(5)	See Note 13 for additional information on our forward foreign exchange contract derivatives associated with our OTC Derivatives Operations.


(6)	We are over-collateralized since the actual amount of financial instruments pledged as collateral for securities sold under agreements to repurchase amounts to $200 million and $346.1 million as of March 31, 2016 and September 30, 2015, respectively.

(7)

(8)

Collateral

The table below presents financial instruments at fair value, that we received as collateral, are not included on our Condensed Consolidated Statements of Financial Condition, and that were available to be delivered or repledged, along with the balances of such instruments that were used to deliver or repledge, to satisfy one of our purposes described above:



	March 31, 2016			September 30, 2015
	(in thousands)
Collateral we received that is available to be delivered or repledged	$	2,076,066		$	2,308,277
Collateral that we delivered or repledged	$	1,276,079	⁽¹⁾	$	1,122,540	⁽²⁾


(1)	The collateral delivered or repledged as of March 31, 2016, includes client margin securities which we pledged with a clearing organization in the amount of $247.3 million which were applied against our requirement of $148.9 million.


(2)	The collateral delivered or repledged as of September 30, 2015, includes client margin securities which we pledged with a clearing organization in the amount of $240.7 million which were applied against our requirement of $147.6 million.

Encumbered assets

The table below presents information about the fair value of our assets that have been pledged for one of the purposes described above:



	March 31, 2016			September 30, 2015
	(in thousands)
Financial instruments owned, at fair value, pledged to counterparties that:
Had the right to deliver or repledge	$	326,901		$	424,668
Did not have the right to deliver or repledge	$	25,229	⁽¹⁾	$	94,006	⁽²⁾


(1)	Assets delivered or repledged as of March 31, 2016, includes securities which we pledged with a clearing organization in the amount of $18.9 million which were applied against our requirement of $148.9 million (client margin securities we pledged which are described in the preceding table constitute the remainder of the assets pledged to meet the requirement).


(2)	Assets delivered or repledged as of September 30, 2015, includes securities which we pledged with a clearing organization in the amount of $30.5 million which were applied against our requirement of $147.6 million (client margin securities we pledged which are described in the preceding table constitute the remainder of the assets pledged to meet the requirement).

Transfer of certain financial assets accounted for as secured borrowings

The following table presents the remaining contractual maturity of securities under agreements to repurchase and securities lending transactions accounted for as secured borrowings:



	Overnight and continuous		Up to 30 days		30-90 days		Greater than 90 days		Total
	(in thousands)
As of March 31, 2016:

Repurchase agreements
Government and agency obligations	$	96,363	$	4,775	$	—	$	—	$	101,138
Agency MBS and CMOs	86,316		3,225		—		—		89,541
Total Repurchase Agreements	182,679		8,000		—		—		190,679

Securities lending
Equity securities	610,476		—		—		—		610,476
Total	$	793,155	$	8,000	$	—	$	—	$	801,155
Gross amounts of recognized liabilities for repurchase agreements and securities lending transactions included in the Offsetting Assets and Liabilities table included within this footnote									$	801,155
Amounts related to repurchase agreements and securities lending transactions not included in the Offsetting Assets and Liabilities table included within this footnote									$	—

As of September 30, 2015:

Repurchase agreements
Government and agency obligations	$	211,594	$	5,250	$	—	$	—	$	216,844
Agency MBS and CMOs	112,941		2,751		—		—		115,692
Total Repurchase Agreements	324,535		8,001		—		—		332,536

Securities lending
Equity securities	478,573		—		—		—		478,573
Total	$	803,108	$	8,001	$	—	$	—	$	811,109
Gross amounts of recognized liabilities for repurchase agreements and securities lending transactions included in the Offsetting Assets and Liabilities table included within this footnote									$	811,109
Amounts related to repurchase agreements and securities lending transactions not included in the Offsetting Assets and Liabilities table included within this footnote									$	—