Trading Securities Owned and Trading Securities Sold, But Not Yet Purchased

9 Months Ended

Sep. 30, 2011

Trading Securities Owned and Trading Securities Sold, But Not Yet Purchased

Trading Securities Owned and Trading Securities Sold, But Not Yet Purchased

NOTE 6- Trading Securities Owned and Trading Securities Sold, But Not Yet Purchased

The components of trading securities owned and trading securities sold, but not yet purchased, at September 30, 2011 and December 31, 2010, are as follows (in thousands):

	September 30,2011		December 31, 2010
Trading securities owned:
U.S. government agency securities	$	71,333	$	86,882
U.S. government securities		12,202		9,038
Corporate securities:
Fixed income securities		264,623		221,145
Equity securities		40,886		46,877
State and municipal securities		137,400		80,228
	$	526,444	$	444,170
Trading securities sold, but not yet purchased:
U.S. government securities	$	109,568	$	131,561
U.S. government agency securities		0		664
Corporate securities:
Fixed income securities		129,226		61,026
Equity securities		33,071		6,800
State and municipal securities		325		89
	$	272,190	$	200,140

At September 30, 2011 and December 31, 2010, trading securities owned in the amount of $355.0 million and $272.2 million, respectively, were pledged as collateral for our repurchase agreements and short-term borrowings.

Trading securities sold, but not yet purchased, represent obligations of our company to deliver the specified security at the contracted price, thereby creating a liability to purchase the security in the market at prevailing prices. We are obligated to acquire the securities sold short at prevailing market prices, which may exceed the amount reflected in the consolidated statements of financial condition.