Cash and Securities Segregated for Regulatory and Other Purposes

3 Months Ended

Mar. 31, 2014

Cash and Securities Segregated for Regulatory and Other Purposes

Cash and Securities Segregated for Regulatory and Other Purposes

4. Cash and Securities Segregated for Regulatory and Other Purposes

Cash and securities segregated for regulatory and other purposes at March 31, 2014 and December 31, 2013 includes $5.0 million of cash deposited into an escrow account by ClearPoint in connection with the Homeward Transaction, which is required to be maintained until February 22, 2016 (the third anniversary of the closing date).   Refer to Note 11 herein for additional information.

In addition, cash segregated at December 31, 2013 includes $1.0 million set aside in a special reserve bank account for the exclusive benefit of customers pertaining to the previous activities of the Company’s former Rates business and items related to when the Company’s broker-dealer subsidiary was previously conducting self-clearing in prior years, including outstanding checks issued to customers and vendors, and other miscellaneous items.  No deposit was required at March 31, 2014 as the Company’s broker-dealer subsidiary had satisfied existing customer payables.