Derivative Financial Instruments

3 Months Ended

Feb. 28, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 7. Derivative Financial Instruments

Our derivative activities are recorded at fair value 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.

	February 28, 2025 (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 ........................................	$4,897	3	$—	—
Foreign exchange contracts:
Bilateral OTC .......................................	58,815	3	—	—
Total derivatives designated as accounting hedges ............................	63,712		—
Derivatives not designated as accounting hedges:
Interest rate contracts:
Exchange-traded ................................	263	45,486	—	22,552
Cleared OTC ........................................	1,790,994	7,264	1,823,494	7,679
Bilateral OTC .......................................	350,898	1,518	667,793	991
Foreign exchange contracts:
Bilateral OTC .......................................	101,760	42,295	119,188	12,740
Equity contracts:
Exchange-traded ................................	842,797	2,002,426	731,454	1,764,359
Bilateral OTC .......................................	1,025,374	29,093	838,819	23,043
Commodity contracts:
Exchange-traded ................................	10	602	115	568
Bilateral OTC .......................................	4,519	11,289	1,509	5,148
Credit contracts:
Cleared OTC ........................................	43,080	106	42,589	72
Bilateral OTC .......................................	52,587	17	30,880	24
Total derivatives not designated as accounting hedges .......................	4,212,282		4,255,841
Total gross derivative assets/ liabilities:
Exchange-traded ................................	843,070		731,569
Cleared OTC ........................................	1,838,971		1,866,083
Bilateral OTC .......................................	1,593,953		1,658,189
Amounts offset in our Consolidated Statements of Financial Condition (3):
Exchange-traded ................................	(617,442)		(617,442)
Cleared OTC ........................................	(1,836,758)		(1,848,671)
Bilateral OTC .......................................	(1,163,126)		(1,111,264)
Net amounts per Consolidated Statements of Financial Condition (4) .................................	$658,668		$678,464

(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.

	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

(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	Three Months Ended
Gains (Losses)	February 28, 2025	February 29, 2024
Interest rate swaps (1) ................................................	$(5,628)	$(4,558)
Long-term debt .............................................................	(6,691)	(11,267)
Total ...............................................................................	$(12,319)	$(15,825)

(1)Includes net settlements of $11.9 million and $15.8 million for the three

months ended February 28, 2025 and February 29, 2024, respectively.

Gains (losses) on our net investment hedges recognized in

Currency translation and other adjustments, a component of

Other comprehensive income (loss):

$ in thousands	Three Months Ended
Gains (Losses)	February 28, 2025	February 29, 2024
Foreign exchange contracts .......................................	$16,854	$2,117
Total ...............................................................................	$16,854	$2,117

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	Three Months Ended
Gains (Losses)	February 28, 2025	February 29, 2024
Interest rate contracts .................................................	$(22,502)	$21,722
Foreign exchange contracts .......................................	(4,875)	(9,834)
Equity contracts ...........................................................	494,216	(309,656)
Commodity contracts ..................................................	5,734	4,100
Credit contracts ............................................................	1,051	(4,573)
Total ...............................................................................	$473,624	$(298,241)

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 February 28, 2025:

	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 ......................................	$4,514	$—	$—	$—	$4,514
Equity options and forwards ..........	237,386	216,424	—	—	453,810
Credit default swaps .......................	—	27,055	—	—	27,055
Total return swaps ...........................	150,024	54,555	231	(3,816)	200,994
Foreign currency forwards, swaps and options .................................	119,656	2,013	—	—	121,669
Fixed income forwards ...................	25,679	—	—	—	25,679
Interest rate swaps, options and forwards ......................................	68,054	157,692	32,137	(30,958)	226,925
Total ...................................................	$605,313	$457,739	$32,368	$(34,774)	1,060,646
Cross-product counterparty netting ..........................................					(36,026)
Total OTC derivative assets included in Financial instruments owned ....................					$1,024,620

	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 ......................................	$1,504	$—	$—	$—	$1,504
Equity options and forwards ..........	123,339	85,742	13,442	—	222,523
Credit default swaps ........................	1,049	3,748	—	—	4,797
Total return swaps ...........................	181,051	93,519	—	(3,816)	270,754
Foreign currency forwards, swaps and options .................................	78,859	1,425	—	—	80,284
Fixed income forwards ...................	718	—	—	—	718
Interest rate swaps, options and forwards ......................................	57,420	104,297	440,665	(30,958)	571,424
Total ...................................................	$443,940	$288,731	$454,107	$(34,774)	1,152,004
Cross-product counterparty netting ..........................................					(36,026)
Total OTC derivative liabilities included in Financial instruments sold, not yet purchased ...................................					$1,115,978

(1)At February 28, 2025, we held net exchange-traded derivative assets and

liabilities and other credit agreements with a fair value of $225.6 million and

$114.1 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

February 28, 2025, cash collateral received and pledged was $591.6 million

and $551.6 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.

OTC derivative assets at February 28, 2025:

Counterparty credit quality (1):	$ in thousands
A- or higher ...............................................................................................	$170,331
BBB- to BBB+ ...........................................................................................	42,612
BB+ or lower .............................................................................................	487,458
Unrated .....................................................................................................	324,219
Total ..........................................................................................................	$1,024,620

(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:

	February 28, 2025
	External Credit Rating
$ in millions	Investment Grade	Non- investment Grade	Total Notional
Credit protection sold:
Index credit default swaps .....................	$1,746.9	$605.2	$2,352.1

	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

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:

$ in millions	February 28, 2025	November 30, 2024
Derivative instrument liabilities with credit-risk- related contingent features ...................................	$135.5	$102.3
Collateral posted ..........................................................	(99.5)	(50.6)
Collateral received .......................................................	295.4	296.1
Return of and additional collateral required in the event of a credit rating downgrade below investment grade (1) ..............................................	331.4	347.8

(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.