Revenue Recognition |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition | 14. Revenue Recognition
Refer to Note 2 – Summary of Significant Accounting Policies in Company’s 2023 Form 10-K for detail on the Company’s primary sources of revenue and the corresponding accounting treatment. Information related to items that impact certain revenue streams within the periods presented is shown below.
Principal Transactions and Proprietary Trading
In 2023, the Company invested in treasury bill and treasury notes, which are primarily in the line item “Cash and securities segregated for regulatory purposes” on the statements of financial condition, in order to enhance its yield on its excess 15c3-3 deposits. During 2022, there was an increase in U.S. government securities yields, which created an unrealized loss on the Company’s U.S. government securities portfolio. In 2023, the Company recorded the reversal of the unrealized loss resulting in a realized and unrealized gain due to the securities coming closer to maturity. The Company continuously invests in treasury bills and treasury notes as part of its normal operations to meet deposit requirements. Refer to Note 7 – Fair Value Measurements for additional detail.
The following table represents detail related to principal transactions and proprietary trading.
Stock Borrow / Stock Loan
For the three months ended March 31, 2024 and 2023, stock borrow / stock loan revenue was $4,098,000 ($10,890,000 gross revenue less $6,792,000 expenses) and $3,442,000 ($9,776,000 gross revenue less $6,334,000 expenses), respectively.
Interest, Marketing and Distribution Fees
For the three months ended March 31, 2024 and 2023, interest, marketing and distribution fees was $8,763,000 ($8,819,000 gross revenue less $56,000 expenses) and $6,973,000 ($7,129,000 gross revenue less $156,000 expenses), respectively. |
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