Receivables from and Payables to Brokers, Dealers, and Clearing Organizations

6 Months Ended

Jun. 30, 2013

Receivables from and Payables to Brokers, Dealers, and Clearing Organizations

Receivables from and Payables to Brokers, Dealers, and Clearing Organizations

6.   Receivables from and Payables to Brokers, Dealers, and Clearing Organizations

Amounts receivable from and payable to brokers, dealers and clearing organizations consists of the following:

(In thousands of dollars)	June 30, 2013		December 31,  2012
Deposits with clearing organizations	$	7,056	$	9,566
Receivable from clearing organizations	2,193		2,001
Receivable for unsettled trading activities	—		237
Underwriting and syndicate fees receivable	—		1,020
Total receivables	$	9,249	$	12,824
Payable to clearing organizations	—		638,009
Payable for unsettled trading activities	—		—
Total payables	$	—	$	638,009

Included within deposits with clearing organizations at June 30, 2013 and December 31, 2012 is a deposit with the Fixed Income Clearing Corporation (“FICC”) of approximately $6.3 million and $8.8 million, respectively, related to the Company’s self clearing activities associated with the Rates business.  Deposits with clearing organizations will be returned to the Company if the memberships with the clearing organizations are terminated.

Payable to clearing organizations at December 31, 2012 included approximately $35.5 million of excess equity (funds that are readily available to the Company) held at the Company’s principal clearing broker.

Prior to the discontinuation of the Company’s Fixed Income businesses during the three months ended June 30, 2013, securities transactions were recorded on their trade date as if they had settled.  The related amounts receivable and payable for unsettled securities transactions were recorded net, by clearing organization, in Receivables from or Payables to brokers, dealers and clearing organizations in the Consolidated Statements of Financial Condition.  The clearing organizations were able to re-hypothecate all securities held on behalf of the Company.