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Fair value measurements (Tables)

3 Months Ended

Mar. 31, 2024

Schedule of Investments in Company-Sponsored Funds

The following table provides information about the Company's investments in Company-sponsored funds as of March 31, 2024:


(Expressed in thousands)
	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
Hedge funds (1)	$	378	$	—	Quarterly - Annually	30 - 120 Days
Private equity funds (2)	4,527		1,619		N/A	N/A
	$	4,905	$	1,619

(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, 2023:


(Expressed in thousands)
	Fair Value		Unfunded Commitments		Redemption Frequency	Redemption Notice Period
Hedge funds (1)	$	446	$	—	Quarterly - Annually	30 - 120 Days
Private equity funds (2)	5,072		2,367		N/A	N/A
	$	5,518	$	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.

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 March 31, 2024 and December 31, 2023, 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 March 31, 2024:


(Expressed in thousands)
	Fair Value Measurements as of March 31, 2024
	Level 1		Level 2		Level 3		Total
Assets

Deposits with clearing organizations	$	35,225	$	—	$	—	$	35,225
Securities owned:
U.S. Treasury securities	927,933		—		—		927,933
U.S. Agency securities	—		8,419		—		8,419

Corporate debt and other obligations	—		11,707		—		11,707
Mortgage and other asset-backed securities	—		2,981		—		2,981
Municipal obligations	—		47,374		—		47,374
Convertible bonds	—		14,393		—		14,393
Corporate equities	28,319		—		—		28,319
Money markets	—		250		—		250
Auction rate securities	—		—		2,713		2,713
Securities owned, at fair value	956,252		85,124		2,713		1,044,089
Investments (1)	1,715		16,445		—		18,160
Loans(1)	—		2,485		—		2,485
Derivative contracts:

TBAs	—		185		—		185

Derivative contracts, total	—		185		—		185
Total	$	993,192	$	104,239	$	2,713	$	1,100,144
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities	$	488,901	$	—	$	—	$	488,901
U.S. Agency securities	—		1		—		1

Corporate debt and other obligations	—		10,577		—		10,577
Mortgage and other asset-backed securities	—		—		—		—

Convertible bonds	—		11,687		—		11,687
Corporate equities	9,766		—		—		9,766

Securities sold but not yet purchased, at fair value	498,667		22,265		—		520,932

Derivative contracts:
Futures	1,714		—		—		1,714

TBAs	—		177		—		177


Derivative contracts, total	1,714		177		—		1,891
Total	$	500,381	$	22,442	$	—	$	522,823

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

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2023:


(Expressed in thousands)
	Fair Value Measurements as of December 31, 2023
	Level 1		Level 2		Level 3		Total
Assets


Deposits with clearing organizations	$	34,789	$	—	$	—	$	34,789
Securities owned:
U.S. Treasury securities	695,346		—		—		695,346
U.S. Agency securities	—		2		—		2

Corporate debt and other obligations	—		5,769		—		5,769
Mortgage and other asset-backed securities	—		6,627		—		6,627
Municipal obligations	—		35,333		—		35,333
Convertible bonds	—		16,735		—		16,735
Corporate equities	27,170		—		—		27,170
Money markets	5,400		217		—		5,617
Auction rate securities	—		—		2,713		2,713
Securities owned, at fair value	727,916		64,683		2,713		795,312
Investments (1)	1,872		16,913		—		18,785
Securities purchased under agreements to resell	—		5,842		—		5,842
Derivative contracts:
Futures	2		—		—		2
TBAs	—		11		—		11

Derivative contracts, total	2		11		—		13
Total	$	764,579	$	87,449	$	2,713	$	854,741
Liabilities
Securities sold but not yet purchased:
U.S. Treasury securities	$	14,603	$	—	$	—	$	14,603


Corporate debt and other obligations	—		1,508		—		1,508
Mortgage and other asset-backed securities	—		2		—		2

Convertible bonds	—		2,136		—		2,136
Corporate equities	13,427		—		—		13,427

Securities sold but not yet purchased, at fair value	28,030		3,646		—		31,676

Derivative contracts:
Futures	735		—		—		735

TBAs	—		2		—		2

Derivative contracts, total	735		2		—		737
Total	$	28,765	$	3,648	$	—	$	32,413

(1) Included in other assets on the 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 months ended March 31, 2024 and 2023:


(Expressed in thousands)
	Level 3 Assets and Liabilities
	For the Three Months Ended March 31, 2024
			Total Realized
	Beginning		and Unrealized		Purchases		Sales and		Transfers		Ending
	Balance		Gain		and Issuances		Settlements		In (Out)		Balance
Assets
Auction rate securities (1)	$	2,713	$	—	$	—	$	—	$	—	$	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 March 31, 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

—

31,776

(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 March 31, 2024:


(Expressed in thousands)			Fair Value Measurement: Assets
	Carrying Value		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	27,661	$	27,661	$	—	$	—	$	27,661

Deposits with clearing organizations	58,791		58,791		—		—		58,791
Receivable from brokers, dealers and clearing organizations:
Securities borrowed	147,647		—		147,647		—		147,647
Receivables from brokers	57,579		—		57,579		—		57,579
Securities failed to deliver	20,171		—		20,171		—		20,171
Clearing organizations and other	35,066		—		35,066		—		35,066

	260,463		—		260,463		—		260,463
Receivable from customers	1,179,700		—		1,179,700		—		1,179,700

Notes receivable, net	66,889		—		66,889		—		66,889
Securities purchased under agreements to resell	4,090		—		4,090				4,090
Investments (1)	97,299		—		97,299		—		97,299

(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 $95.2 million of this balance. This balance is included within other assets on the consolidated balance sheet.


(Expressed in thousands)			Fair Value Measurement: Liabilities
	Carrying Value		Level 1		Level 2		Level 3		Total
Drafts payable	$	21,459	$	21,459	$	—	$	—	$	21,459
Bank call loans	94,350		—		94,350		—		94,350
Payables to brokers, dealers and clearing organizations:
Securities loaned	298,002		—		298,002		—		298,002
Payable to brokers	779		—		779		—		779
Securities failed to receive	25,573		—		25,573		—		25,573
Clearing organization and other	171,298		—		171,298		—		171,298
	495,652		—		495,652		—		495,652
Payables to customers	447,627		—		447,627		—		447,627
Securities sold under agreements to repurchase	286,455		—		286,455		—		286,455
Senior secured notes	113,050		—		111,617		—		111,617

Assets and liabilities not measured at fair value as of December 31, 2023:


(Expressed in thousands)			Fair Value Measurement: Assets
	Carrying Value		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	28,835	$	28,835	$	—	$	—	$	28,835

Deposits with clearing organization	43,917		43,917		—		—		43,917
Receivable from brokers, dealers and clearing organizations:
Securities borrowed	158,612		—		158,612		—		158,612
Receivables from brokers	65,639		—		65,639		—		65,639
Securities failed to deliver	29,656		—		29,656		—		29,656
Clearing organizations	30,780		—		30,780		—		30,780

	284,687		—		284,687		—		284,687
Receivable from customers	1,059,892		—		1,059,892		—		1,059,892

Notes receivable, net	62,640		—		62,640		—		62,640
Investments (1)	90,999		—		90,999		—		90,999

(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 $89 million of this balance. This balance is included within other assets on the consolidated balance sheet.


(Expressed in thousands)			Fair Value Measurement: Liabilities
	Carrying Value		Level 1		Level 2		Level 3		Total
Drafts payable	$	9,002	$	9,002	$	—	$	—	$	9,002

Payables to brokers, dealers and clearing organizations:
Securities loaned	284,987		—		284,987		—		284,987
Payable to brokers	447		—		447		—		447
Securities failed to receive	23,809		—		23,809		—		23,809
Other	51,912		—		51,912		—		51,912
	361,155		—		361,155		—		361,155
Payables to customers	369,287		—		369,287		—		369,287
Securities sold under agreements to repurchase	640,382		—		640,382		—		640,382
Senior secured notes	113,050		—		109,838		—		109,838

Schedule of Notional Amounts and Fair Values of Derivatives by Product

The notional amounts and fair values of the Company's derivatives as of March 31, 2024 and December 31, 2023 by product were as follows:


(Expressed in thousands)
	Fair Value of Derivative Instruments as of March 31, 2024
	Description	Notional		Fair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contracts	TBAs	$	26,000	$	185


		$	26,000	$	185
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts	Futures	$	9,580,000	$	1,714

Other contracts	TBAs	26,000		177



		$	9,606,000	$	1,891

(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, 2023
	Description	Notional		Fair Value
Assets:
Derivatives not designated as hedging instruments (1)
Other contracts	TBAs	$	3,700	$	11
	Futures	5,000		2


		$	8,700	$	13
Liabilities:
Derivatives not designated as hedging instruments (1)
Commodity contracts	Futures	$	6,875,000	$	735


Other contracts	TBAs	3,700		2


		$	6,878,700	$	737

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 consolidated income statements for the three months ended March 31, 2024 and 2023:

(Expressed in thousands)

The Effect of Derivative Instruments in the Income Statement

For the Three Months Ended March 31, 2024

Recognized in Income on Derivatives
(pre-tax)

Types

Description

Location

Net Gain

Commodity contracts

Futures

Principal transactions revenue, net

3,252

Other contracts

TBAs

Principal transactions revenue, net

3,253

(Expressed in thousands)

The Effect of Derivative Instruments in the Income Statement

For the Three Months Ended March 31, 2023

Recognized in Income on Derivatives
(pre-tax)

Types

Description

Location

Net Gain

Commodity contracts

Futures

Principal transactions revenue, net

210

Other contracts

Foreign exchange forward contracts

Other revenue

(1)

Other contracts

TBAs

Principal transactions revenue, net

211