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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value And Related Number Of Derivative Contracts Categorized By Predominant Risk Exposure
The following tables present the fair value and related number of derivative contracts categorized by type of derivative contract as reflected in the Consolidated Statements of Financial Condition at September 30, 2016 and December 31, 2015.  The fair value of assets/liabilities related to derivative contracts represents our receivable/payable for derivative financial instruments, gross of counterparty netting and cash collateral received and pledged (in thousands, except contract amounts):
 
Assets
 
Liabilities
 
Fair Value
 
Number of
Contracts
 
Fair Value
 
Number of
Contracts
September 30, 2016
 
 
 
 
 
 
 
Interest rate contracts
$
4,873,516

 
31,728

 
$
4,776,839

 
37,746

Foreign exchange contracts
428,868

 
9,997

 
447,387

 
10,039

Equity contracts
912,285

 
3,649,003

 
1,094,330

 
3,184,904

Commodity contracts
1,072

 
4,940

 
1,489

 
1,741

Credit contracts: centrally cleared swaps
6,687

 
102

 
8,710

 
41,889

Credit contracts: other credit derivatives
20,846

 
152

 
32,043

 
189

Total
6,243,274

 
 

 
6,360,798

 
 

Counterparty/cash-collateral netting
(5,887,874
)
 
 

 
(5,970,029
)
 
 

Total per Consolidated Statement of Financial Condition
$
355,400

 
 

 
$
390,769

 
 

 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
Interest rate contracts
$
2,910,093

 
56,748

 
$
2,849,958

 
74,904

Foreign exchange contracts (1)
453,527

 
8,089

 
466,021

 
7,376

Equity contracts
1,017,611

 
3,057,754

 
1,094,597

 
2,947,416

Commodity contracts (1)
27,590

 
2,896

 
5,510

 
2,001

Credit contracts: centrally cleared swaps
2,447

 
299

 
841

 
44

Credit contracts: other credit derivatives
16,977

 
100

 
59,314

 
135

Total
4,428,245

 
 

 
4,476,241

 
 

Counterparty/cash-collateral netting
(4,165,446
)
 
 

 
(4,257,998
)
 
 

Total per Consolidated Statement of Financial Condition
$
262,799

 
 

 
$
218,243

 
 


(1)
Commodity contracts increased in assets by a fair value of $19.3 million and by 29 contracts and in liabilities by a fair value of $4.6 million and by 28 contracts with corresponding decreases in foreign exchange contracts from those amounts previously reported to correct for the classification of certain contracts. The total amount of contracts remained unchanged.
Unrealized And Realized Gains (Losses) On Derivative Contracts
The following table presents unrealized and realized gains (losses) on derivative contracts as reflected in the Consolidated Statements of Operations for the three and nine months ended September 30, 2016 and 2015 (in thousands):
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
 
 
2016

2015
 
2016
 
2015
Interest rate contracts
$
(27,354
)
 
$
25,308

 
$
(101,744
)
 
$
580

Foreign exchange contracts
11,089

 
6,893

 
15,992

 
30,417

Equity contracts
(184,020
)
 
68,649

 
(505,872
)
 
28,008

Commodity contracts
2,777

 
(33,940
)
 
351

 
(17,261
)
Credit contracts
(3,616
)
 
(4,375
)
 
(3,812
)
 
(612
)
Total
$
(201,124
)
 
$
62,535

 
$
(595,085
)
 
$
41,132
Remaining Contract Maturity Of Fair Value Of OTC Derivative Assets And Liabilities
The following tables set forth by remaining contract maturity the fair value of OTC derivative assets and liabilities as reflected in the Consolidated Statement of Financial Condition at September 30, 2016 (in thousands):
 
OTC Derivative Assets (1) (2) (3)
 
0-12 Months
 
1-5 Years
 
Greater Than
5 Years
 
Cross-
Maturity
Netting (4)
 
Total
 
 
 
 
 
 
 
 
 
 
Commodity swaps, options and forwards
$
1,427

 
$
—

 
$
—

 
$
(1,057
)
 
$
370

Equity swaps and options
27,781

 
5,370

 
—

 
—

 
33,151

Credit default swaps
—

 
7,948

 
230

 
(177
)
 
8,001

Total return swaps
27,796

 
874

 
—

 
(613
)
 
28,057

Foreign currency forwards, swaps and options
84,564

 
29,937

 
—

 
(7,150
)
 
107,351

Interest rate swaps, options and forwards
42,055

 
229,950

 
88,205

 
(97,075
)
 
263,135

Total
$
183,623

 
$
274,079

 
$
88,435

 
$
(106,072
)
 
440,065

Cross product counterparty netting
 

 
 

 
 

 
 

 
(754
)
 
 

 
 

 
 

 
 

 
 

Total OTC derivative assets included in Trading assets
 

 
 

 
 

 
 

 
$
439,311


(1)
At September 30, 2016, we held exchange traded derivative assets and other credit agreements with a fair value of $25.6 million, which are not included in this table.
(2)
OTC derivative assets in the table above are gross of collateral received.  OTC derivative assets are recorded net of collateral received in the Consolidated Statements of Financial Condition.  At September 30, 2016, cash collateral received was $134.0 million.
(3)
Derivative fair values include counterparty netting within product category.
(4)
Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories.
 
OTC Derivative Liabilities (1) (2) (3)
 
0-12 Months
 
1-5 Years
 
Greater Than
5 Years
 
Cross-Maturity
Netting (4)
 
Total
Commodity swaps, options and forwards
$
1,051

 
$
1,254

 
$
—

 
$
(1,057
)
 
$
1,248

Equity swaps and options
13,408

 
23,617

 
—

 
—

 
37,025

Credit default swaps
28

 
12,639

 
1,672

 
(177
)
 
14,162

Total return swaps
26,824

 
16,967

 
—

 
(613
)
 
43,178

Foreign currency forwards, swaps and options
113,001

 
20,024

 
—

 
(7,150
)
 
125,875

Fixed income forwards
5,044

 
—

 
—

 
—

 
5,044

Interest rate swaps, options and forwards
23,709

 
119,675

 
124,541

 
(97,075
)
 
170,850

Total
$
183,065

 
$
194,176

 
$
126,213

 
$
(106,072
)
 
397,382

Cross product counterparty netting
 

 
 

 
 

 
 

 
(754
)
 
 

 
 

 
 

 
 

 
 

Total OTC derivative liabilities included in Trading liabilities
 

 
 

 
 

 
 

 
$
396,628

 
(1)
At September 30, 2016, we held exchange traded derivative liabilities and other credit agreements with a fair value of $193.2 million, which are not included in this table.
(2)
OTC derivative liabilities in the table above are gross of collateral pledged. OTC derivative liabilities are recorded net of collateral pledged in the Consolidated Statements of Financial Condition.  At September 30, 2016, cash collateral pledged was $216.1 million.
(3)
Derivative fair values include counterparty netting within product category.
(4)
Amounts represent the netting of receivable balances with payable balances for the same counterparty within product category across maturity categories.
Counterparty Credit Quality With Respect To Fair Value Of OTC Derivatives Assets
At September 30, 2016, the counterparty credit quality with respect to the fair value of our OTC derivative assets was as follows (in thousands):
Counterparty credit quality (1):
 
A- or higher
$
215,020

BBB- to BBB+
77,419

BB+ or lower
64,975

Unrated
81,897

Total
$
439,311

 
(1)
We utilize internal credit ratings determined by the Jefferies Risk Management department.  Credit ratings determined by Risk Management use methodologies that produce ratings generally consistent with those produced by external rating agencies.