v3.25.2
Financial Assets and Liabilities
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Financial Assets and Liabilities Financial Assets and Liabilities
Financial Instruments Measured at Fair Value

The fair value of equities, options, on-the-run U.S. government obligations, certain exchange traded notes and digital assets is estimated using recently executed transactions and market price quotations in active markets and are categorized as Level 1 with the exception of inactively traded equities, all other exchange traded notes and certain other financial instruments, which are categorized as Level 2. The Company’s corporate bonds, derivative contracts, other U.S. and non-U.S. government obligations and receivables and payables linked to digital assets have been categorized as Level 2. Fair value of the Company’s derivative contracts is based on the indicative prices obtained from a number of banks and broker-dealers, as well as management’s own analyses. The indicative prices have been independently validated through the Company’s risk management systems, which are designed to check prices with information independently obtained from exchanges and venues where such financial instruments are listed or to compare prices of similar instruments with similar maturities for listed financial futures in foreign exchange.

The Company prices certain financial instruments held for trading at fair value based on theoretical prices, which can differ from quoted market prices. The theoretical prices reflect price adjustments primarily caused by the fact that the Company continuously prices its financial instruments based on all available information. This information includes prices for identical and near-identical positions, as well as the prices for securities underlying the Company’s positions, on other exchanges that are open after the exchange on which the financial instruments is traded closes. The Company validates that all price adjustments can be substantiated with market inputs and checks the theoretical prices independently. Consequently, such financial instruments are classified as Level 2.
Fair value measurements for those items measured on a recurring basis are summarized below as of June 30, 2025:
 June 30, 2025
(in thousands)Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Counterparty and Cash Collateral Netting Total Fair Value 
Assets     
Financial instruments owned, at fair value:     
Equity securities$1,144,221 $3,259,440 $— $— $4,403,661 
U.S. and Non-U.S. government obligations951,679 1,439,728 — — 2,391,407 
Corporate Bonds— 1,453,902 — — 1,453,902 
Exchange traded notes1,085 26,683 — — 27,768 
Currency forwards— 473,991 — (454,090)19,901 
Options6,779 — — — 6,779 
 $2,103,764 $6,653,744 $— $(454,090)$8,303,418 
Financial instruments owned, pledged as collateral:
Equity securities$1,422,576 $1,197,491 $— $— $2,620,067 
Exchange traded notes— 5,288 — — 5,288 
 $1,422,576 $1,202,779 $— $— $2,625,355 
Other Assets
Equity investment$— $— $85,990 $— $85,990 
Digital assets101,471 — — — 101,471 
Exchange stock939 — — — 939 
 $102,410 $— $85,990 $— $188,400 
Receivables from broker dealers and clearing organizations:
Receivables linked to digital assets$— $35,248 $— $— $35,248 
$— $35,248 $— $— $35,248 
Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities$2,406,833 $2,536,275 $— $— $4,943,108 
U.S. and Non-U.S. government obligations209,704 1,541,072 — — 1,750,776 
Corporate Bonds— 1,643,448 — — 1,643,448 
Exchange traded notes— 71,532 — — 71,532 
Currency forwards— 456,325 — (456,308)17 
Options14,747 — — — 14,747 
 $2,631,284 $6,248,652 $— $(456,308)$8,423,628 
Payables to broker dealers and clearing organizations:
Interest rate swap$— $859 $— $— $859 
Payables linked to digital assets— 187,461 — — 187,461 
$— $188,320 $— $— $188,320 
    

Fair value measurements for those items measured on a recurring basis are summarized below as of December 31, 2024:
 December 31, 2024
(in thousands)Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Counterparty and Cash Collateral Netting Total Fair Value 
Assets     
Financial instruments owned, at fair value:     
Equity securities$686,827 $2,471,450 $— $— $3,158,277 
U.S. and Non-U.S. government obligations348,761 908,625 — — 1,257,386 
Corporate Bonds— 967,377 — — 967,377 
Exchange traded notes885 40,602 — — 41,487 
Currency forwards— 716,970 — (676,905)40,065 
Options55,423 — — — 55,423 
$1,091,896 $5,105,024 $— $(676,905)$5,520,015 
Financial instruments owned, pledged as collateral:
Equity securities$1,639,404 $629,895 $— $— $2,269,299 
Exchange traded notes— 13,338 — — 13,338 
$1,639,404 $643,233 $— $— $2,282,637 
Other Assets
Equity investment$— $— $75,843 $— $75,843 
Digital assets81,671 — — — 81,671 
Exchange stock812 — — — 812 
$82,483 $— $75,843 $— $158,326 
Receivables from broker dealers and clearing organizations:
Receivables linked to digital Assets$— $51,595 $— $— $51,595 
$— $51,595 $— $— $51,595 
Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities$1,837,195 $1,854,883 $— $— $3,692,078 
U.S. and Non-U.S. government obligations107,045 1,313,955 — — 1,421,000 
Corporate Bonds— 1,249,413 — — 1,249,413 
Exchange traded notes15 73,225 — — 73,240 
Currency forwards— 681,878 — (681,878)— 
Options5,240 — — — 5,240 
 $1,949,495 $5,173,354 $— $(681,878)$6,440,971 
Payables to broker dealers and clearing organizations:
Interest rate swap$— $2,572 $— $— $2,572 
Payables linked to digital assets— 134,164 — — 134,164 
$— $136,736 $— $— $136,736 

JNX Investment

The Company has a minority investment (the “JNX Investment”) in Japannext Co., Ltd. (“JNX”), formerly known as SBI Japannext Co., Ltd., a proprietary trading system based in Tokyo. In connection with the JNX Investment, the Company issued the SBI Bonds (as described in Note 9 “Borrowings”) and used the proceeds to partially finance the transaction. The JNX Investment is included within Level 3 of the fair value hierarchy. As of June 30, 2025 and December 31, 2024, the fair value of the JNX Investment was determined using a weighted average of valuations using 1) the discounted cash flow method, an income approach; 2) a market approach based on average enterprise value/EBITDA ratios of comparable companies; and to a lesser extent 3) a transaction approach based on transaction values of comparable companies. The fair value measurement is highly sensitive to significant changes in the unobservable inputs, and significant increases (decreases) in discount rate or decreases (increases) in enterprise value/EBITDA multiples would result in a significantly lower (higher) fair value measurement.
The table below presents information on the valuation techniques, significant unobservable inputs and their ranges for the JNX Investment:

June 30, 2025
(in thousands)Fair ValueValuation TechniqueSignificant Unobservable InputRangeWeighted Average
Equity investment$85,990 Discounted cash flowEstimated revenue growth
1.4% - 5.0%
4.1 %
Discount rate
16.3% - 16.3%
16.3 %
MarketFuture enterprise value/ EBITDA ratio
7.8x - 19.2x
14.4x

December 31, 2024
(in thousands)Fair ValueValuation TechniqueSignificant Unobservable InputRangeWeighted Average
Equity investment$75,843 Discounted cash flowEstimated revenue growth
5.0% - 5.0%
5.0 %
Discount rate
16.4% - 16.4%
16.4 %
MarketFuture enterprise value/ EBITDA ratio
7.5x - 18.0x
13.2x

Changes in the fair value of the JNX Investment are included within Other, net in the Condensed Consolidated Statements of Comprehensive Income.

The following presents the changes in the Company’s Level 3 financial instruments measured at fair value on a recurring basis:
Three Months Ended June 30, 2025
(in thousands)Balance at March 31, 2025PurchasesTotal Realized and Unrealized Gains / (Losses) (1)Net Transfers into (out of) Level 3SettlementBalance at June 30, 2025Change in Net Unrealized Gains / (Losses) on Investments still held at June 30, 2025
Assets
Other assets:
Equity investment$85,009 $— $981 $— $— $85,990 $981 
Other— — — — — 
Total$85,009 $— $981 $— $— $85,990 $981 
(1) Total realized and unrealized gains/(losses) includes gains and losses due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment.
Three Months Ended June 30, 2024
(in thousands)Balance at March 31, 2024PurchasesTotal Realized and Unrealized Gains / (Losses) (1)Net Transfers into (out of) Level 3SettlementBalance at June 30, 2024Change in Net Unrealized Gains / (Losses) on Investments still held at June 30, 2024
Assets
Other assets:
Equity investment$84,587 $— $(5,556)$— $— $79,031 $(5,556)
Other— — — — — — — 
Total$84,587 $— $(5,556)$— $— $79,031 $(5,556)
(1) Total realized and unrealized gains/(losses) includes gains and losses due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment.
Six Months Ended June 30, 2025
(in thousands)Balance at December 31, 2024PurchasesTotal Realized and Unrealized Gains / (Losses) (1)Net Transfers into (out of) Level 3SettlementBalance at June 30, 2025Change in Net Unrealized Gains / (Losses) on Investments still held at June 30, 2025
Assets
Other assets:
Equity investment$75,843 $— $10,147 $— $— $85,990 $10,147 
Total$75,843 $— $10,147 $— $— $85,990 $10,147 
(1) Total realized and unrealized gains/(losses) includes gains and losses due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment.
Six Months Ended June 30, 2024
(in thousands)Balance at December 31, 2023PurchasesTotal Realized and Unrealized Gains / (Losses) (1)Net Transfers into (out of) Level 3SettlementBalance at June 30, 2024Change in Net Unrealized Gains / (Losses) on Investments still held at June 30, 2024
Assets
Other assets:
Equity investment$81,805 $— $(2,774)$— $— $79,031 $(2,774)
Total$81,805 $— $(2,774)$— $— $79,031 $(2,774)
(1) Total realized and unrealized gains/(losses) includes gains and losses due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment.

Financial Instruments Not Measured at Fair Value

The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the Condensed Consolidated Statements of Financial Condition. The table below excludes non-financial assets and liabilities. The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximates fair value due to the relatively short-term nature of the underlying assets. The fair value of the Company’s long-term borrowings is based on quoted prices from the market for similar instruments, and is categorized as Level 2 in the fair value hierarchy.
The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of June 30, 2025:
 June 30, 2025
 Carrying Value Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsSignificant Unobservable Inputs
 (in thousands)
Fair Value(Level 1) (Level 2) (Level 3) 
Assets     
Cash and cash equivalents$752,101 $752,101 $752,101 $— $— 
Cash restricted or segregated under regulations and other37,706 37,706 37,706 — — 
Securities borrowed2,654,360 2,654,360 — 2,654,360 — 
Securities purchased under agreements to resell1,084,322 1,084,322 — 1,084,322 — 
Receivables from broker-dealers and clearing organizations1,300,720 1,300,720 — 1,300,720 — 
Receivables from customers360,373 360,373 — 360,373 — 
Other assets (1)31,332 31,332 9,232 22,100 — 
Total Assets$6,220,914 $6,220,914 $799,039 $5,421,875 $— 
Liabilities
Short-term borrowings$251,754 $255,300 $— $255,300 $— 
Long-term borrowings1,743,171 1,805,359 — 1,805,359 — 
Securities loaned3,118,350 3,118,350 — 3,118,350 — 
Securities sold under agreements to repurchase1,907,126 1,907,126 — 1,907,126 — 
Payables to broker-dealers and clearing organizations1,045,668 1,045,668 — 1,045,668 — 
Payables to customers50,470 50,470 — 50,470 — 
Other liabilities (2)30,627 30,627 — 30,627 — 
Total Liabilities$8,147,166 $8,212,900 $— $8,212,900 $— 
(1) Includes cash collateral and deposits, and interest and dividends receivables.
(2) Includes deposits, interest and dividends payable.
The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of December 31, 2024:
 December 31, 2024
 Carrying Value Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsSignificant Unobservable Inputs
 (in thousands)
Fair Value(Level 1) (Level 2) (Level 3) 
Assets     
Cash and cash equivalents$872,513 $872,513 $872,513 $— $— 
Cash restricted or segregated under regulations and other41,478 41,478 41,478 — — 
Securities borrowed2,294,529 2,294,529 — 2,294,529 — 
Securities purchased under agreements to resell983,941 983,941 — 983,941 — 
Receivables from broker-dealers and clearing organizations1,049,255 1,049,255 — 1,049,255 — 
Receivables from customers149,804 149,804 — 149,804 — 
Other assets (1)31,726 31,726 11,121 20,605 — 
Total Assets$5,423,246 $5,423,246 $925,112 $4,498,134 $— 
Liabilities
Short-term borrowings$38,541 $38,541 $— $38,541 $— 
Long-term borrowings1,740,467 1,788,719 — 1,788,719 — 
Securities loaned2,431,878 2,431,878 — 2,431,878 — 
Securities sold under agreements to repurchase1,271,788 1,271,788 — 1,271,788 — 
Payables to broker-dealers and clearing organizations781,830 781,830 — 781,830 — 
Payables to customers46,112 46,112 — 46,112 — 
Other liabilities (2)26,114 26,114 — 26,114 — 
Total Liabilities$6,336,730 $6,384,982 $— $6,384,982 $— 
(1) Includes cash collateral and deposits, and interest and dividends receivables.
(2) Includes deposits, interest and dividends payable.

Offsetting of Financial Assets and Liabilities

The Company does not net securities borrowed and securities loaned, or securities purchased under agreements to resell and securities sold under agreements to repurchase. These financial instruments are presented on a gross basis in the Condensed Consolidated Statements of Financial Condition. In the tables below, the amounts of financial instruments owned that are not offset in the Condensed Consolidated Statements of Financial Condition, but could be netted against financial liabilities with specific counterparties under legally enforceable master netting agreements in the event of default, are presented to provide financial statement readers with the Company’s estimate of its net exposure to counterparties for these financial instruments.
The following tables set forth the gross and net presentation of certain financial assets and financial liabilities as of June 30, 2025 and December 31, 2024:

 June 30, 2025
 Gross Amounts of Recognized AssetsAmounts Offset in the Condensed Consolidated Statement of Financial ConditionNet Amounts of Assets Presented in the Condensed Consolidated Statements of Financial ConditionAmounts Not Offset in the Condensed Consolidated Statements of Financial Condition 
 
(in thousands)Financial Instrument CollateralCounterparty Netting/ Cash CollateralNet Amount
Offsetting of Financial Assets:                        
Securities borrowed$2,654,360 $— $2,654,360 $(2,584,056)$(29,219)$41,085 
Securities purchased under agreements to resell1,084,322 — 1,084,322 (1,084,322)— — 
Trading assets, at fair value:
Currency forwards473,991 (454,090)19,901 — — 19,901 
Options6,779 — 6,779 — (5,091)1,688 
Total$4,219,452 $(454,090)$3,765,362 $(3,668,378)$(34,310)$62,674 
 Gross Amounts of Recognized LiabilitiesAmounts Offset in the Condensed Consolidated Statement of Financial ConditionNet Amounts of Liabilities Presented in the Condensed Consolidated Statements of Financial ConditionAmounts Not Offset in the Condensed Consolidated Statements of Financial Condition 
  
(in thousands)
Financial Instrument Collateral
Counterparty Netting/ Cash CollateralNet Amount 
Offsetting of Financial Liabilities:                     
Securities loaned$3,118,350 $— $3,118,350 $(3,068,408)$(39,174)$10,768 
Securities sold under agreements to repurchase1,907,126 — 1,907,126 (1,907,126)— — 
Payable to broker-dealers and clearing organizations:
Interest rate swaps859 — 859 — — 859 
Trading liabilities, at fair value:
Currency forwards456,325 (456,308)17 — — 17 
Options14,747 — 14,747 — (5,091)9,656 
Total$5,497,407 $(456,308)$5,041,099 $(4,975,534)$(44,265)$21,300 

 December 31, 2024
 Gross Amounts of Recognized AssetsAmounts Offset in the Condensed Consolidated Statement of Financial ConditionNet Amounts of Assets Presented in the Condensed Consolidated Statements of Financial ConditionAmounts Not Offset in the Condensed Consolidated Statements of Financial Condition
 
(in thousands)Financial Instrument CollateralCounterparty Netting/ Cash CollateralNet Amount
Offsetting of Financial Assets:                        
Securities borrowed$2,294,529 $— $2,294,529 $(2,222,054)$(39,309)$33,166 
Securities purchased under agreements to resell983,941 — 983,941 (983,753)— 188 
Trading assets, at fair value:
Currency forwards716,970 (676,905)40,065 — — 40,065 
Options55,423 — 55,423 — (55,423)— 
Total$4,050,863 $(676,905)$3,373,958 $(3,205,807)$(94,732)$73,419 
Gross Amounts of Recognized LiabilitiesAmounts Offset in the Condensed Consolidated Statement of Financial ConditionNet Amounts of Liabilities Presented in the Condensed Consolidated Statements of Financial ConditionAmounts Not Offset in the Condensed Consolidated Statements of Financial Condition
(in thousands)Financial Instrument CollateralCounterparty Netting/ Cash CollateralNet Amount
Offsetting of Financial Liabilities:                     
Securities loaned$2,431,878 $— $2,431,878 $(2,375,372)$(48,545)$7,961 
Securities sold under agreements to repurchase1,271,788 — 1,271,788 (1,271,573)— 215 
Payables to broker-dealers and clearing organizations:
Interest rate swaps2,572 — 2,572 — — 2,572 
Trading liabilities, at fair value:
Currency forwards681,878 (681,878)— — — — 
Options5,240 — 5,240 — (5,213)27 
Total$4,393,356 $(681,878)$3,711,478 $(3,646,945)$(53,758)$10,775 

The following table presents gross obligations for securities sold under agreements to repurchase and for securities lending transactions by remaining contractual maturity and the class of collateral pledged as of June 30, 2025 and December 31, 2024:

 June 30, 2025
Remaining Contractual Maturity
(in thousands)Overnight and ContinuousLess than 30 days30 - 60
days		61 - 90
Days		Greater than 90
days		Total
Securities sold under agreements to repurchase:
Equity securities$100,000 $90,000 $185,000 $75,000 $— $450,000 
U.S. and Non-U.S. government obligations1,457,126 — — — — 1,457,126 
Total$1,557,126 $90,000 $185,000 $75,000 $— $1,907,126 
Securities loaned:
Equity securities$3,118,350 $— $— $— $— $3,118,350 
Total$3,118,350 $— $— $— $— $3,118,350 

 December 31, 2024
 Remaining Contractual Maturity
(in thousands)Overnight and ContinuousLess than 30 days30 - 60
days		61 - 90
Days		Greater than 90
days		Total
Securities sold under agreements to repurchase:     
Equity securities$— $190,000 $185,000 $75,000 $— $450,000 
U.S. and Non-U.S. government obligations821,788 — — — — 821,788 
Total$821,788 $190,000 $185,000 $75,000 $— $1,271,788 
Securities loaned:
Equity securities$2,431,878 $— $— $— $— $2,431,878 
Total$2,431,878 $— $— $— $— $2,431,878