Fair value measurements (Tables)

9 Months Ended

Sep. 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 September 30, 2023:

(Expressed in thousands)
	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
Hedge funds (1)	$	459	$	—	Quarterly - Annually	30 - 120 Days
Private equity funds (2)	10,971		2,367		N/A	N/A
	$	11,430	$	2,367

(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 September 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 September 30, 2023:

(Expressed in thousands)
	Fair Value Measurements as of September 30, 2023
	Level 1		Level 2		Level 3		Total
Assets
Deposits with clearing organizations	$	34,970	$	—	$	—	$	34,970
Securities owned:
U.S. Treasury securities	710,730		—		—		710,730
U.S. Agency securities	—		2		—		2
Sovereign obligations	—		261		—		261
Corporate debt and other obligations	—		23,079		—		23,079
Mortgage and other asset-backed securities	—		6,664		—		6,664
Municipal obligations	—		61,735		—		61,735
Convertible bonds	—		19,028		—		19,028
Corporate equities	29,360		—		—		29,360
Money markets	—		373		—		373
Auction rate securities	—		—		2,713		2,713
Securities owned, at fair value	740,090		111,142		2,713		853,945
Investments (1)	3,976		12,084		—		16,060
Derivative contracts:
Futures	1		—		—		1
TBAs	—		153		—		153
Derivative contracts, total	1		153		—		154
Total	$	779,037	$	123,379	$	2,713	$	905,129
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities	$	12,505	$	—	$	—	$	12,505
Corporate debt and other obligations	—		13,799		—		13,799
Mortgage and other asset-backed securities	—		143		—		143
Convertible bonds	—		8,117		—		8,117
Corporate equities	11,013		—		—		11,013
Securities sold but not yet purchased, at fair value	23,518		22,059		—		45,577
Derivative contracts:
Futures	1,874		—		—		1,874
TBAs	—		146		—		146
Derivative contracts, total	1,874		146		—		2,020
Total	$	25,392	$	22,205	$	—	$	47,597

(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
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 nine months ended September 30, 2023 and 2022:

(Expressed in thousands)
	Level 3 Assets and Liabilities
	For the Three Months Ended September 30, 2023
			Total Realized
	Beginning		and Unrealized		Purchases		Sales and		Transfers		Ending
	Balance		Gain		and Issuances		Settlements		In (Out)		Balance
Assets
Auction rate securities (1)	$	31,682	$	3,153	$	—	$	(32,122)	$	—	$	2,713

(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 September 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)	31,977	(29)	1,175	—	—	33,123

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

(Expressed in thousands)
	Level 3 Assets and Liabilities
	For the Nine Months Ended September 30, 2023
		Total Realized
	Beginning	and Unrealized	Purchases	Sales and	Transfers	Ending
	Balance	Gain	and Issuances	Settlements	In (Out)	Balance
Assets
Auction rate securities (1)	31,776	3,159	—	(32,222)	—	2,713

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

(Expressed in thousands)
	Level 3 Assets and Liabilities
	For the Nine Months Ended September 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	(56)	1,375	—	—	33,123

(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 September 30, 2023:

(Expressed in thousands)			Fair Value Measurement: Assets
	Carrying Value		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	30,773	$	30,773	$	—	$	—	$	30,773
Restricted cash	25,949		25,949		—		—		25,949
Deposits with clearing organizations	53,957		53,957		—		—		53,957
Receivable from brokers, dealers and clearing organizations:
Securities borrowed	142,544		—		142,544		—		142,544
Receivables from brokers	45,021		—		45,021		—		45,021
Securities failed to deliver	20,203		—		20,203		—		20,203
Clearing organizations and other	51,599		—		51,599		—		51,599
	259,367		—		259,367		—		259,367
Receivable from customers	1,087,314		—		1,087,314		—		1,087,314
Notes receivable, net	61,270		—		61,270		—		61,270
Investments (1)	85,606		—		85,606		—		85,606

(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 $84 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	$	14,521	$	14,521	$	—	$	—	$	14,521
Bank call loans	56,200		—		56,200		—		56,200
Payables to brokers, dealers and clearing organizations:
Securities loaned	292,860		—		292,860		—		292,860
Payable to brokers	1,337		—		1,337		—		1,337
Securities failed to receive	29,031		—		29,031		—		29,031
Clearing organization and other	25,243		—		25,243		—		25,243
	348,471		—		348,471		—		348,471
Payables to customers	363,839		—		363,839		—		363,839
Securities sold under agreements to repurchase	680,064		—		680,064		—		680,064
Senior secured notes	113,050		—		108,084		—		108,084

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 and cash equivalents	$	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
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
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 September 30, 2023 and December 31, 2022 by product were as follows:

(Expressed in thousands)
	Fair Value of Derivative Instruments as of September 30, 2023
	Description	Notional		Fair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contracts	TBAs	$	8,746	$	153
	Futures	5,000		1
		$	13,746	$	154
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts	Futures	$	7,625,000	$	1,874
Other contracts	TBAs	8,746		146
		$	7,633,746	$	2,020

(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 nine months ended September 30, 2023 and 2022:

(Expressed in thousands)
	The Effect of Derivative Instruments in the Income Statement
	For the Three Months Ended September 30, 2023
		Recognized in Income on Derivatives (pre-tax)
Types	Description	Location	Net Gain
Commodity contracts	Futures	Principal transactions revenue, net	$	1,078
Other contracts	TBAs	Principal transactions revenue, net	25
			$	1,103
(Expressed in thousands)
	The Effect of Derivative Instruments in the Income Statement
	For the Three Months Ended September 30, 2022
		Recognized in Income on Derivatives (pre-tax)
Types	Description	Location	Net Gain
Commodity contracts	Futures	Principal transactions revenue, net	$	349
Other contracts	TBAs	Principal transactions revenue, net	1
			$	350

(Expressed in thousands)
	The Effect of Derivative Instruments in the Income Statement
	For the Nine Months Ended September 30, 2023
		Recognized in Income on Derivatives (pre-tax)
Types	Description	Location	Net Gain/(Loss)
Commodity contracts	Futures	Principal transactions revenue, net	$	4,817
Other contracts	Foreign exchange forward contracts	Other revenue	(8)
	TBAs	Principal transactions revenue, net	63
			$	4,872
(Expressed in thousands)
	The Effect of Derivative Instruments in the Income Statement
	For the Nine Months Ended September 30, 2022
		Recognized in Income on Derivatives (pre-tax)
Types	Description	Location	Net Gain/(Loss)
Commodity contracts	Futures	Principal transactions revenue, net	$	3,868
Other contracts	Foreign exchange forward contracts	Other revenue	(20)
	TBAs	Principal transactions revenue, net	57
			$	3,905