Financial Instruments Owned And Financial Instruments Sold, But Not Yet Purchased

9 Months Ended

Sep. 30, 2017

Trading Securities Balance Sheet Reported Amounts [Abstract]

Financial Instruments Owned And Financial Instruments Sold, But Not Yet Purchased

NOTE 5 – Financial Instruments Owned and Financial Instruments Sold, But Not Yet Purchased

The components of financial instruments owned and financial instruments sold, but not yet purchased, at September 30, 2017 and December 31, 2016 are as follows (in thousands):

	September 30, 2017		December 31, 2016
Financial instruments owned:
U.S. government securities	$	48,900	$	9,951
U.S. government agency securities		128,014		89,833
Mortgage-backed securities:
Agency		258,348		305,774
Non-agency		37,185		28,402
Corporate securities:
Fixed income securities		409,550		299,946
Equity securities		38,280		32,044
State and municipal securities		145,226		159,095
	$	1,065,503	$	925,045
Financial instruments sold, but not yet purchased:
U.S. government securities	$	297,690	$	362,536
U.S. government agency securities		22,140		20,549
Mortgage-backed securities:
Agency		65,716		94,552
Non-agency		—		1
Corporate securities:
Fixed income securities		311,516		202,968
Equity securities		52,261		18,395
State and municipal securities		—		31
	$	749,323	$	699,032

At September 30, 2017 and December 31, 2016, financial instruments owned in the amount of $459.4 million and $992.9 million, respectively, were pledged as collateral for our repurchase agreements and short-term borrowings. Financial instruments owned on a settlement-date basis were $1.3 billion at December 31, 2016. Our financial instruments owned are presented on a trade-date basis in the consolidated statements of financial condition.

Financial instruments 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 in future periods. We are obligated to acquire the securities sold short at prevailing market prices in future periods, which may exceed the amount reflected in the consolidated statements of financial condition.