Derivative Financial Instruments

12 Months Ended

Nov. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 7. Derivative Financial Instruments

Our derivative activities are recorded at fair value in our

Consolidated Statements of Financial Condition in Financial

instruments owned and Financial instruments sold, not yet

purchased, net of cash paid or received under credit support

agreements and on a net counterparty basis when a legally

enforceable right to offset exists under a master netting

agreement. We enter into derivative transactions to satisfy the

needs of our clients and to manage our own exposure to market

and credit risks. In addition, we apply hedge accounting to: (1)

interest rate swaps that have been designated as fair value

hedges of the changes in fair value due to the benchmark interest

rate for certain fixed rate senior long-term debt, and (2) forward

foreign exchange contracts designated as hedges to offset the

change in the value of certain net investments in foreign

operations.

Derivatives are subject to various risks similar to other financial

instruments, including market, credit and operational risk. The

risks of derivatives should not be viewed in isolation, but rather

should be considered on an aggregate basis along with our other

trading-related activities. We manage the risks associated with

derivatives on an aggregate basis along with the risks associated

with proprietary trading as part of our firm wide risk management

policies.

In connection with our derivative activities, we may enter into

International Swaps and Derivatives Association, Inc. master

netting agreements or similar agreements with counterparties.

Refer to Note 2, Summary of Significant Accounting Policies for

additional information regarding the offsetting of derivative

contracts.

The following tables also provide information regarding (1) the

extent to which, under enforceable master netting arrangements,

such balances are presented net in our Consolidated Statements

of Financial Condition as appropriate under U.S. GAAP and (2)

the extent to which other rights of setoff associated with these

arrangements exist and could have an effect on our financial

position.

The fair value of assets/liabilities in the following tables

represent our receivable/payable for derivative financial

instruments, gross of counterparty netting and cash collateral

received and pledged.

	November 30, 2024 (1)
	Assets		Liabilities
$ in thousands	Fair Value	Number of Contracts (2)	Fair Value	Number of Contracts (2)
Derivatives designated as accounting hedges:
Interest rate contracts:
Cleared OTC ........................................	$3,396	3	$—	—
Foreign exchange contracts:
Bilateral OTC .......................................	41,903	3	—	—
Total derivatives designated as accounting hedges ............................	45,299		—
Derivatives not designated as accounting hedges:
Interest rate contracts:
Exchange-traded ................................	273	16,548	13	32,984
Cleared OTC ........................................	1,030,842	6,663	1,030,671	6,891
Bilateral OTC .......................................	365,678	1,096	717,255	1,256
Foreign exchange contracts:
Bilateral OTC .......................................	132,240	57,786	138,608	35,545
Equity contracts:
Exchange-traded ................................	682,327	1,777,822	521,889	1,574,498
Bilateral OTC .......................................	855,169	33,516	1,024,129	20,587
Commodity contracts:
Exchange-traded ................................	22	806	17	697
Bilateral OTC .......................................	4,570	11,691	1,381	5,180
Credit contracts:
Cleared OTC ........................................	31,488	66	38,711	32
Bilateral OTC .......................................	37,618	16	31,353	32
Total derivatives not designated as accounting hedges .......................	3,140,227		3,504,027
Total gross derivative assets/ liabilities:
Exchange-traded ................................	682,622		521,919
Cleared OTC ........................................	1,065,726		1,069,382
Bilateral OTC .......................................	1,437,178		1,912,726
Amounts offset in our Consolidated Statements of Financial Condition (3):
Exchange-traded ................................	(476,364)		(476,364)
Cleared OTC ........................................	(1,058,995)		(1,066,232)
Bilateral OTC .......................................	(1,132,392)		(1,251,117)
Net amounts per Consolidated Statements of Financial Condition (4) .................................	$517,775		$710,314

	November 30,  2023 (1)
	Assets		Liabilities
$ in thousands	Fair Value	Number of Contracts (2)	Fair Value	Number of Contracts (2)
Derivatives designated as accounting hedges:
Interest rate contracts:
Cleared OTC .........................................	$—	—	$6,070	3
Foreign exchange contracts:
Bilateral OTC ........................................	259	1	19,638	—
Total derivatives designated as accounting hedges .............................	259		25,708
Derivatives not designated as accounting hedges:
Interest rate contracts:
Exchange-traded .................................	316	88,354	63	67,643
Cleared OTC .........................................	1,156,937	4,415	1,185,503	4,544
Bilateral OTC ........................................	893,983	1,179	1,266,506	786
Foreign exchange contracts:
Exchange-traded .................................	—	—	—	4
Bilateral OTC ........................................	147,470	66,254	129,770	38,585
Equity contracts:
Exchange-traded .................................	678,542	1,180,832	393,220	1,174,298
Bilateral OTC ........................................	715,754	31,116	850,088	16,234
Commodity contracts:
Exchange-traded .................................	59	735	33	940
Bilateral OTC .......................................	5,662	15,497	1,398	6,455
Credit contracts:
Cleared OTC .........................................	38,046	133	38,487	81
Bilateral OTC ........................................	21,436	22	19,573	29
Total derivatives not designated as accounting hedges .............................	3,658,205		3,884,641
Total gross derivative assets/ liabilities:
Exchange-traded .................................	678,917		393,316
Cleared OTC .........................................	1,194,983		1,230,060
Bilateral OTC ........................................	1,784,564		2,286,973
Amounts offset in our Consolidated Statements of Financial Condition (3):
Exchange-traded .................................	(384,392)		(384,392)
Cleared OTC .........................................	(1,189,517)		(1,189,513)
Bilateral OTC ........................................	(1,533,711)		(1,190,667)
Net amounts per Consolidated Statements of Financial Condition (4) ..................................	$550,844		$1,145,777

(1)Exchange-traded derivatives include derivatives executed on an organized exchange. Cleared OTC derivatives include derivatives executed bilaterally and subsequently

novated to and cleared through central clearing counterparties. Bilateral OTC derivatives include derivatives executed and settled bilaterally without the use of an

organized exchange or central clearing counterparty.

(2)The number of exchange-traded contracts may include open futures contracts. The unsettled fair value of these futures contracts is included in Receivables from/

Payables to brokers, dealers and clearing organizations.

(3)Amounts netted include both netting by counterparty and for cash collateral paid or received.

(4)We have not received or pledged additional collateral under master netting agreements and/or other credit support agreements that is eligible to be offset beyond what

has been offset in our Consolidated Statements of Financial Condition.

Gains (losses) recognized in Interest expense related to fair value

hedges:

$ in thousands	Year Ended November 30,
Gains (Losses)	2024	2023	2022
Interest rate swaps (1) ....................	$(12,735)	$(78,766)	$(212,280)
Long-term debt ................................	(50,407)	21,638	219,143
Total ..................................................	$(63,142)	$(57,128)	$6,863

(1)Includes net settlements of $(62.3) million, $(55.6) million and $1.4 million for

the years ended November 30, 2024, 2023 and 2022, respectively.

Gains (losses) on our net investment hedges recognized in

Currency translation and other adjustments, a component of

Other comprehensive income (loss), in our Consolidated

Statements of Comprehensive Income:

$ in thousands	Year Ended November 30,
Gains (Losses)	2024	2023	2022
Foreign exchange contracts ..........	$(9,652)	$(49,060)	$116,876
Total ..................................................	$(9,652)	$(49,060)	$116,876

Unrealized and realized gains (losses) on derivative contracts

recognized primarily in Principal transactions revenues, which are

utilized in connection with our client activities and our economic

risk management activities:

$ in thousands	Year Ended November 30,
Gains (Losses)	2024	2023	2022
Interest rate contracts ....................	$108,192	$215,856	$(154,378)
Foreign exchange contracts ..........	68,943	46,744	(164,729)
Equity contracts ...............................	(295,662)	(99,968)	(29,740)
Commodity contracts .....................	33,384	4,089	(43,106)
Credit contracts ...............................	(18,250)	(10,983)	15,612
Total ..................................................	$(103,393)	$155,738	$(376,341)

The net gains (losses) on derivative contracts in the table above

are one of a number of activities comprising our business

activities and are before consideration of economic hedging

transactions, which generally offset the net gains (losses)

included above. We substantially mitigate our exposure to market

risk on our cash instruments through derivative contracts, which

generally provide offsetting revenues, and we manage the risk

associated with these contracts in the context of our overall risk

management framework.

OTC Derivatives

Remaining contract maturities at November 30, 2024:

	OTC Derivative Assets (1) (2) (3)
$ in thousands	0 – 12  Months	1 – 5 Years	Greater Than 5 Years	Cross- Maturity Netting (4)	Total
Commodity swaps, options and forwards .....................	$4,566	$—	$28,727	$—	$33,293
Equity options and forwards	176,159	948	—	(714)	176,393
Total return swaps .................	196,636	34,197	418	(5,230)	226,021
Foreign currency forwards, swaps and options ...........	92,163	1,773	—	—	93,936
Fixed income forwards .........	203	—	—	—	203
Interest rate swaps, options and forwards .....................	67,392	175,102	34,250	(45,846)	230,898
Total .........................................	$537,119	$212,020	$63,395	$(51,790)	760,744
Cross-product counterparty netting ................................					(49,154)
Total OTC derivative assets included in Financial instruments owned ..........					$711,590

	OTC Derivative Liabilities (1) (2) (3)
$ in thousands	0 – 12 Months	1 – 5 Years	Greater Than 5 Years	Cross- Maturity Netting (4)	Total
Commodity swaps, options and forwards ......................................	$1,376	$—	$—	$—	$1,376
Equity options and forwards ..........	171,794	177,950	—	(714)	349,030
Credit default swaps ........................	1,408	840	9,106	—	11,354
Total return swaps ...........................	150,706	76,092	—	(5,230)	221,568
Foreign currency forwards, swaps and options .................................	53,608	1,073	—	—	54,681
Fixed income forwards ...................	21,997	—	—	—	21,997
Interest rate swaps, options and forwards ......................................	49,455	136,335	438,964	(45,846)	578,908
Total ...................................................	$450,344	$392,290	$448,070	$(51,790)	1,238,914
Cross-product counterparty netting ..........................................					(49,154)
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased ...................................					$1,189,760

(1)At November 30, 2024, we held net exchange-traded derivative assets and

liabilities and other credit agreements with a fair value of $206.3 million and

$46.6 million, respectively, which are not included in these tables.

(2)OTC derivative assets and liabilities in the tables above are gross of collateral

pledged. OTC derivative assets and liabilities are recorded net of collateral

pledged in our Consolidated Statements of Financial Condition. At

November 30, 2024, cash collateral received and pledged was $400.1 million

and $526.0 million, respectively.

(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 the fair value of our

OTC derivative assets at November 30, 2024:

Counterparty credit quality (1):	$ in thousands
A- or higher ...............................................................................................	$178,391
BBB- to BBB+ ...........................................................................................	41,136
BB+ or lower .............................................................................................	231,253
Unrated .....................................................................................................	260,810
Total ..........................................................................................................	$711,590

(1)We utilize internal credit ratings determined by our Risk Management

department. Credit ratings determined by Risk Management use

methodologies that produce ratings generally consistent with those produced

by external rating agencies.

Credit Related Derivative Contracts

External credit ratings of the underlyings or referenced assets for

our written credit related derivative contracts:

	November 30, 2024
	External Credit Rating
$ in millions	Investment Grade	Non- investment Grade	Total Notional
Credit protection sold:
Index credit default swaps .....................	$395.2	$553.4	$948.6

	November 30, 2023
	External Credit Rating
$ in millions	Investment Grade	Non- investment Grade	Total Notional
Credit protection sold:
Index credit default swaps .....................	$1,451.5	$893.9	$2,345.4

Contingent Features

Certain of our derivative instruments contain provisions that

require our debt to maintain an investment grade credit rating

from each of the major credit rating agencies. If our debt were to

fall below investment grade, it would be in violation of these

provisions and the counterparties to the derivative instruments

could request immediate payment or demand immediate and

ongoing full overnight collateralization on our derivative

instruments in liability positions. The following table presents the

aggregate fair value of all derivative instruments with such credit-

risk-related contingent features that are in a liability position, the

collateral amounts we have posted or received in the normal

course of business and the potential collateral we would have

been required to return and/or post additionally to our

counterparties if the credit-risk-related contingent features

underlying these agreements were triggered:

	November 30,
$ in millions	2024	2023
Derivative instrument liabilities with credit-risk- related contingent features ...................................	$102.3	$139.5
Collateral posted ..........................................................	(50.6)	(97.6)
Collateral received .......................................................	296.1	71.0
Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) ..............................................	347.8	112.9

(1)These potential outflows include initial margin received from counterparties at

the execution of the derivative contract. The initial margin will be returned if

counterparties elect to terminate the contract after a downgrade.