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Receivables From, Payables To, and Deposits With Broker-Dealers and Clearing Organizations
 3 Months Ended
Mar. 31, 2024
Receivables From, Payables To, and Deposits With Broker-Dealers and Clearing Organizations [Abstract]  
Receivables From, Payables To, and Deposits With Broker-Dealers and Clearing Organizations

6. Receivables From, Payables To, and Deposits With Broker-Dealers and Clearing Organizations

 

Amounts receivable from, payables to, and deposits with broker-dealers and clearing organizations consisted of the following as of the periods indicated:

 

  

As of
March 31,
2024

  

As of December 31,
2023

 
Receivables from and deposits with broker-dealers and clearing organizations        
DTCC / OCC / NSCC (1)  $13,826,000   $9,332,000 
Goldman Sachs & Co. LLC (“GSCO”)   41,000    38,000 
National Financial Services, LLC (“NFS”)   2,487,000    2,212,000 
Securities fail-to-deliver   759,000    119,000 
Globalshares   93,000    47,000 
Total Receivables from and deposits with broker-dealers and clearing organizations  $17,206,000   $11,748,000 
           
Payables to broker-dealers and clearing organizations          
Securities fail-to-receive  $981,000   $399,000 
Payables to broker-dealers   1,022,000    82,000 
Total Payables to broker-dealers and clearing organizations  $2,003,000   $481,000 

 

(1)Depository Trust & Clearing Corporation is referred to as (“DTCC”), Options Clearing Corporation is referred to as (“OCC”), and National Securities Clearing Corporation is referred to as (“NSCC”).

 

Under the DTCC shareholders’ agreement, MSCO is required to participate in the DTCC common stock mandatory purchase. As of both March 31, 2024 and December 31, 2023, MSCO had shares of DTCC common stock valued at approximately $1,236,000 which is included within the line item “Deposits with broker-dealers and clearing organizations” on the statements of financial condition.

 

In September 2022, MSCO and RISE entered into a clearing agreement whereby RISE would introduce clients to MSCO. As part of the agreement, RISE deposited a clearing fund escrow deposit of $50,000 to MSCO, and had cash of approximately $1.1 million and $1.0 million in its brokerage account at MSCO as of March 31, 2024 and December 31, 2023, respectively. The resulting asset of RISE and liability of MSCO is eliminated in consolidation.