Derivative Instruments |
Derivative Instruments The fair value of the Company’s derivative instruments on a gross basis consisted of the following at June 30, 2025 and December 31, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | | | | June 30, 2025 | | December 31, 2024 | Derivatives Assets | | Financial Statement Location | | Fair Value | | Notional | | Fair Value | | Notional | Derivative instruments not designated as hedging instruments: | | | | | | | | | | | Equities futures | | Receivables from broker-dealers and clearing organizations | | $ | 11,673 | | | $ | 1,106,975 | | | $ | (541) | | | $ | 1,069,167 | | Commodity futures | | Receivables from broker-dealers and clearing organizations | | 48,791 | | | 8,319,473 | | | 5,096 | | | 5,610,161 | | Currency futures | | Receivables from broker-dealers and clearing organizations | | (19,437) | | | 4,728,532 | | | (6,093) | | | 5,211,677 | | Fixed income futures | | Receivables from broker-dealers and clearing organizations | | (26) | | | 28,434 | | | (3,890) | | | 110,748 | | | | | | | | | | | | | Options | | Financial instruments owned | | 6,779 | | | 1,640,291 | | | 55,423 | | | 808,189 | | Currency forwards | | Financial instruments owned | | 473,991 | | | 39,730,857 | | | 716,970 | | | 42,202,047 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Derivatives Liabilities | | Financial Statement Location | | Fair Value | | Notional | | Fair Value | | Notional | Derivative instruments not designated as hedging instruments: | | | | | | | | | | | Equities futures | | Payables to broker-dealers and clearing organizations | | $ | 2,763 | | | $ | 1,088,855 | | | $ | 527 | | | $ | 1,774,043 | | Commodity futures | | Payables to broker-dealers and clearing organizations | | (3,218) | | | 60,084 | | | (277) | | | 56,331 | | Currency futures | | Payables to broker-dealers and clearing organizations | | 11 | | | 34,467 | | | 7,382 | | | 2,232,543 | | Fixed income futures | | Payables to broker-dealers and clearing organizations | | 730 | | | 520,133 | | | (74) | | | 21,077 | | Options | | Financial instruments sold, not yet purchased | | 14,747 | | | 1,681,577 | | | 5,240 | | | 820,023 | | Currency forwards | | Financial instruments sold, not yet purchased | | 456,325 | | | 39,722,025 | | | 681,878 | | | 42,184,501 | | | | | | | | | | | | | Derivative instruments designated as hedging instruments: | | | | | | | | | | | | | | | | | | | | | | Interest rate swaps | | Payables to broker-dealers and clearing organizations | | 859 | | | 1,075,000 | | | 2,572 | | | 1,075,000 | |
Amounts included in receivables from and payables to broker-dealers and clearing organizations represent net variation margin on long and short futures contracts as well as amounts receivable or payable on interest rate swaps. The following table summarizes the net gain (loss) from derivative instruments not designated as hedging instruments under ASC 815, which are recorded in total revenues, and from those designated as hedging instruments under ASC 815, which are initially recorded in other comprehensive income in the accompanying Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | (in thousands) | | Financial Statements Location | | 2025 | | 2024 | | 2025 | | 2024 | | | Derivative instruments not designated as hedging instruments: | | | | | | | | | | | | | Futures | | Trading income, net | | $ | 56,616 | | | $ | 26,170 | | | $ | 26,385 | | | $ | 27,702 | | | | Currency forwards | | Trading income, net | | 72,937 | | | 7,520 | | | 161,964 | | | 1,459 | | | | Options | | Trading income, net | | 18,405 | | | 20,280 | | | 26,987 | | | 33,318 | | | | Interest rate swap on term loans (1) | | Other, net | | — | | | 5,686 | | | — | | | 5,686 | | | | Terminated interest rate swaps (2) | | Financing interest expense on long-term borrowings | | (125) | | | (11,380) | | | (3,035) | | | (23,082) | | | | | | | | $ | 147,833 | | | $ | 48,276 | | | $ | 212,301 | | | $ | 45,083 | | | | | | | | | | | | | | | | | Derivative instruments designated as hedging instruments: | | | | | | | | | | | | | Interest rate swaps (1) | | Other comprehensive income | | $ | 1,391 | | | $ | 78 | | | $ | 1,822 | | | $ | 13,525 | | | | | | | | | | | | | | | | | | | | | $ | 1,391 | | | $ | 78 | | | $ | 1,822 | | | $ | 13,525 | | | |
(1) The Company entered into a two-year $1,525 million floating-to-fixed interest rate agreement in December 2023 (the “December 2023 Swap”). The two-year interest rate swap met the criteria to be considered as a qualifying cash flow hedge under ASC 815 as of December 2023, and the mark-to-market gains (losses) on the instrument was deferred within Other comprehensive income on the Condensed Consolidated Statements of Comprehensive Income. In June 2024, the Company partially terminated and dedesignated a portion of our ongoing December 2023 Swap to an updated notional of $1,075 million, and recorded a gain of $5.7 million in Other, net. See Note 9 “Borrowings” for further details. (2) The Company records the amortization of AOCI balances related to its previously terminated interest rate swaps in Financing interest expense on long-term borrowings on the Condensed Consolidated Statements of Comprehensive Income. See Note 9 “Borrowings” for further details on the terminated swaps.
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