Fair value measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Investments in Company-Sponsored Funds

The following table provides information about the Company's investments in Company-sponsored funds as of June 30, 2023:

(Expressed in thousands)
	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
Hedge funds (1)	$	520	$	—	Quarterly - Annually	30 - 120 Days
Private equity funds (2)	12,173		2,705		N/A	N/A
	$	12,693	$	2,705

(1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies

(2) Includes private equity funds and private equity fund of funds with diversified portfolios focusing on but not limited to technology companies, venture capital and global natural resources

The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2022:

(Expressed in thousands)
	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
Hedge funds (1)	$	574	$	—	Quarterly - Annually	30 - 120 Days
Private equity funds (2)	8,221		3,018		N/A	N/A
	$	8,795	$	3,018

(1) Includes investments in hedge funds and hedge fund of funds that pursue long/short, event-driven, and activist strategies.

(2) Includes private equity funds and private equity fund of funds with diversified portfolios focusing on but not limited to technology companies, venture capital and global natural resources.

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The Company's assets and liabilities, recorded at fair value on a recurring basis as of June 30, 2023, and December 31, 2022, have been categorized based upon the above fair value hierarchy as follows:

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2023:

(Expressed in thousands)
	Fair Value Measurements as of June 30, 2023
	Level 1		Level 2		Level 3		Total
Assets
Deposits with clearing organizations	$	27,675	$	—	$	—	$	27,675
Securities owned:
U.S. Treasury securities	719,574		—		—		719,574
U.S. Agency securities	—		5,919		—		5,919
Corporate debt and other obligations	—		10,544		—		10,544
Mortgage and other asset-backed securities	—		3,867		—		3,867
Municipal obligations	—		91,648		—		91,648
Convertible bonds	—		28,581		—		28,581
Corporate equities	31,887		—		—		31,887
Money markets	—		487		—		487
Auction rate securities	—		—		31,682		31,682
Securities owned, at fair value	751,461		141,046		31,682		924,189
Investments (1)	5,454		11,713		—		17,167
Derivative contracts:
TBAs	—		4,734		—		4,734
Derivative contracts, total	—		4,734		—		4,734
Total	$	784,590	$	157,493	$	31,682	$	973,765
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities	$	41,737	$	—	$	—	$	41,737
U.S. Agency securities	—		2		—		2
Corporate debt and other obligations	—		2,782		—		2,782
Convertible bonds	—		9,857		—		9,857
Corporate equities	16,723		—		—		16,723
Securities sold but not yet purchased, at fair value	58,460		12,641		—		71,101
Derivative contracts:
Futures	3,057		—		—		3,057
TBAs	—		4,696		—		4,696
Derivative contracts, total	3,057		4,696		—		7,753
Total	$	61,517	$	17,337	$	—	$	78,854

(1) Included in other assets on the condensed consolidated balance sheet.

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2022:

(Expressed in thousands)
	Fair Value Measurements as of December 31, 2022
	Level 1		Level 2		Level 3		Total
Assets
Deposits with clearing organizations	$	24,937	$	—	$	—	$	24,937
Securities owned:
U.S. Treasury securities	362,815		—		—		362,815
U.S. Agency securities	—		6,012		—		6,012
Sovereign obligations	—		9,502		—		9,502
Corporate debt and other obligations	—		9,844		—		9,844
Mortgage and other asset-backed securities	—		1,882		—		1,882
Municipal obligations	—		30,126		—		30,126
Convertible bonds	—		21,800		—		21,800
Corporate equities	24,837		—		—		24,837
Money markets	—		—		—		—
Auction rate securities	—		—		31,776		31,776
Securities owned, at fair value	387,652		79,166		31,776		498,594
Investments (1)	—		7,068		—		7,068
Derivative contracts:
TBAs	—		1,762		—		1,762
Total	$	412,589	$	87,996	$	31,776	$	532,361
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities	$	25,006	$	—	$	—	$	25,006
U.S. Agency securities	—		3		—		3
Sovereign obligations	—		9,048		—		9,048
Corporate debt and other obligations	—		2,905		—		2,905
Convertible bonds	—		4,428		—		4,428
Corporate equities	11,378		—		—		11,378
Securities sold but not yet purchased, at fair value	36,384		16,384		—		52,768
Derivative contracts:
Futures	44		—		—		44
TBAs	—		1,761		—		1,761
Derivative contracts, total	44		1,761		—		1,805
Total	$	36,428	$	18,145	$	—	$	54,573

(1) Included in other assets on the condensed consolidated balance sheet.    

The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2023 and 2022:

(Expressed in thousands)
	Level 3 Assets and Liabilities
	For the Three Months Ended June 30, 2023
			Total Realized
	Beginning		and Unrealized		Purchases		Sales and		Transfers		Ending
	Balance		Losses		and Issuances		Settlements		In (Out)		Balance
Assets
Auction rate securities (1)	$	31,776	$	6	$	—	$	(100)	$	—	$	31,682

(1) Represents auction rate securities that failed in the auction rate market.

(Expressed in thousands)
	Level 3 Assets and Liabilities
	For the Three Months Ended June 30, 2022
		Total Realized
	Beginning	and Unrealized	Purchases	Sales and	Transfers	Ending
	Balance	Losses	and Issuances	Settlements	In (Out)	Balance
Assets
Auction rate securities (1)	31,804	(27)	200	—	—	31,977

(1) Represents auction rate securities that failed in the auction rate market.

(Expressed in thousands)
	Level 3 Assets and Liabilities
	For the Six Months Ended June 30, 2023
		Total Realized
	Beginning	and Unrealized	Purchases	Sales and	Transfers	Ending
	Balance	Losses	and Issuances	Settlements	In (Out)	Balance
Assets
Auction rate securities (1)	31,776	6	—	(100)	—	31,682

(1) Represents auction rate securities that failed in the auction rate market.

(Expressed in thousands)
	Level 3 Assets and Liabilities
	For the Six Months Ended June 30, 2022
		Total Realized
	Beginning	and Unrealized	Purchases	Sales and	Transfers	Ending
	Balance	Losses	and Issuances	Settlements	In (Out)	Balance
Assets
Auction rate securities (1)	31,804	(27)	200	—	—	31,977

(1) Represents auction rate securities that failed in the auction rate market.

Schedule of Financial Instruments, Estimate Not Practicable, Fair Value

Assets and liabilities not measured at fair value as of June 30, 2023:

(Expressed in thousands)			Fair Value Measurement: Assets
	Carrying Value		Level 1		Level 2		Level 3		Total
Cash	$	29,145	$	29,145	$	—	$	—	$	29,145
Restricted cash	25,803		25,803		—		—		25,803
Deposits with clearing organization	48,619		48,619		—		—		48,619
Receivable from brokers, dealers and clearing organizations:
Securities borrowed	255,568		—		255,568		—		255,568
Receivables from brokers	48,354		—		48,354		—		48,354
Securities failed to deliver	5,509		—		5,509		—		5,509
Clearing organizations and other	24,751		—		24,751		—		24,751
	334,182		—		334,182		—		334,182
Receivable from customers	1,066,439		—		1,066,439		—		1,066,439
Notes receivable, net	60,873		—		60,873		—		60,873
Investments (1)	87,826		—		87,826		—		87,826

(1) The cash surrender value of Company-owned life insurance policies, which fluctuates based on changes in fair value of the policies’ underlying investments, comprises approximately $86 million of this balance. This balance is included within other assets on the condensed consolidated balance sheet.

(Expressed in thousands)			Fair Value Measurement: Liabilities
	Carrying Value		Level 1		Level 2		Level 3		Total
Drafts payable	$	21,734	$	21,734	$	—	$	—	$	21,734
Bank call loans	94,400		—		94,400		—		94,400
Payables to brokers, dealers and clearing organizations:
Securities loaned	336,513		—		336,513		—		336,513
Payable to brokers	553		—		553		—		553
Securities failed to receive	5,656		—		5,656		—		5,656
Clearing organization and other	75,624		—		75,624		—		75,624
	418,346		—		418,346		—		418,346
Payables to customers	401,168		—		401,168		—		401,168
Securities sold under agreements to repurchase	645,315		—		645,315		—		645,315
Senior secured notes	113,050		—		107,702		—		107,702

Assets and liabilities not measured at fair value as of December 31, 2022:

(Expressed in thousands)			Fair Value Measurement: Assets
	Carrying Value		Level 1		Level 2		Level 3		Total
Cash	$	112,433	$	112,433	$	—	$	—	$	112,433
Restricted cash	25,534		25,534		—		—		25,534
Deposits with clearing organization	52,754		52,754		—		—		52,754
Receivable from brokers, dealers and clearing organizations:
Securities borrowed	127,817		—		127,817		—		127,817
Receivables from brokers	49,125		—		49,125		—		49,125
Securities failed to deliver	9,099		—		9,099		—		9,099
Clearing organizations	20,035		—		20,035		—		20,035
	206,076		—		206,076		—		206,076
Receivable from customers	1,202,764		—		1,202,764		—		1,202,764
Securities purchased under agreements to resell	—		—		—		—		—
Notes receivable, net	57,495		—		57,495		—		57,495
Investments (1)	79,322		—		79,322		—		79,322

(1) The cash surrender value of Company-owned life insurance policies, which fluctuates based on changes in fair value of the policies’ underlying investments, comprises approximately $77 million of this balance. This balance is included within other assets on the condensed consolidated balance sheet.

(Expressed in thousands)			Fair Value Measurement: Liabilities
	Carrying Value		Level 1		Level 2		Level 3		Total
Bank call loans	$	—	$	—	$	—	$	—	$	—
Payables to brokers, dealers and clearing organizations:
Securities loaned	320,843		—		320,843		—		320,843
Payable to brokers	123		—		123		—		123
Securities failed to receive	62,646		—		62,646		—		62,646
Other	166,350		—		166,350		—		166,350
	549,962		—		549,962		—		549,962
Payables to customers	456,475		—		456,475		—		456,475
Securities sold under agreements to repurchase	161,009		—		161,009		—		161,009
Senior secured notes	114,050		—		113,233		—		113,233

Schedule of Notional Amounts and Fair Values of Derivatives by Product

The notional amounts and fair values of the Company's derivatives as of June 30, 2023 and December 31, 2022 by product were as follows:

(Expressed in thousands)
	Fair Value of Derivative Instruments as of June 30, 2023
	Description	Notional		Fair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contracts	TBAs	$	5,525	$	4,734
		$	5,525	$	4,734
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts	Futures	$	8,117,000	$	3,057
Other contracts	TBAs	5,525		4,696
	Forward repurchase agreements	104,000		—
		$	8,226,525	$	7,753

(1)See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset.

(Expressed in thousands)
	Fair Value of Derivative Instruments as of December 31, 2022
	Description	Notional		Fair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contracts	TBAs	$	1,775	$	1,762
	Forward reverse repurchase agreements	15,000		—
	Other	275		$	—
		$	17,050	$	1,762
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts	Futures	$	1,912,500	$	44
Other contracts	TBAs	1,775		1,761
		$	1,914,275	$	1,805

(1)See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset.

Schedule of Fair Value Amounts of Derivative Instruments and their Effect on Statement of Operations

The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the condensed consolidated income statements for the three and six months ended June 30, 2023 and 2022:

(Expressed in thousands)
	The Effect of Derivative Instruments in the Income Statement
	For the Three Months Ended June 30, 2023
		Recognized in Income on Derivatives (pre-tax)
Types	Description	Location	Net Gain/(Loss)
Commodity contracts	Futures	Principal transactions revenue, net	$	3,529
Other contracts	Foreign exchange forward contracts	Other revenue	(7)
	TBAs	Principal transactions revenue, net	36
			$	3,558
(Expressed in thousands)
	The Effect of Derivative Instruments in the Income Statement
	For the Three Months Ended June 30, 2022
		Recognized in Income on Derivatives (pre-tax)
Types	Description	Location	Net Gain/(Loss)
Commodity contracts	Futures	Principal transactions revenue, net	$	1,328
Other contracts	Foreign exchange forward contracts	Other revenue	(20)
	TBAs	Principal transactions revenue, net	(6)
			$	1,302

(Expressed in thousands)
	The Effect of Derivative Instruments in the Income Statement
	For the Six Months Ended June 30, 2023
		Recognized in Income on Derivatives (pre-tax)
Types	Description	Location	Net Gain/(Loss)
Commodity contracts	Futures	Principal transactions revenue, net	$	3,739
Other contracts	Foreign exchange forward contracts	Other revenue	(8)
	TBAs	Principal transactions revenue, net	38
			$	3,769
(Expressed in thousands)
	The Effect of Derivative Instruments in the Income Statement
	For the Six Months Ended June 30, 2022
		Recognized in Income on Derivatives (pre-tax)
Types	Description	Location	Net Gain/(Loss)
Commodity contracts	Futures	Principal transactions revenue, net	$	3,519
Other contracts	Foreign exchange forward contracts	Other revenue	(20)
	TBAs	Principal transactions revenue, net	56
			$	3,555