v3.26.1
Financial Instruments and Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Financial Instruments and Fair Value Measurements Financial Instruments and Fair Value Measurements
Fair Value

The fair value of equities, options, on-the-run U.S. government obligations, certain exchange traded notes, USDC, 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, 2026:
 June 30, 2026
(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$1,935,476 $5,042,151 $— $— $6,977,627 
U.S. and Non-U.S. government obligations598,682 2,676,386 — — 3,275,068 
Corporate Bonds— 1,071,739 — — 1,071,739 
Exchange traded notes— 26,336 — — 26,336 
Currency forwards— 438,928 — (435,831)3,097 
Options19,359 — — — 19,359 
 $2,553,517 $9,255,540 $— $(435,831)$11,373,226 
Financial instruments owned, pledged as collateral:
Equity securities$2,279,869 $1,218,051 $— $— $3,497,920 
Exchange traded notes— 15,103 — — 15,103 
 $2,279,869 $1,233,154 $— $— $3,513,023 
Other Assets
Equity investment$— $— $85,903 $— $85,903 
Digital assets156,227 — — — 156,227 
USDC (1)
41,787 — — — 41,787 
Exchange stock828 — — — 828 
 $198,842 $— $85,903 $— $284,745 
Receivables from broker dealers and clearing organizations:
Receivables linked to digital assets$— $234,379 $— $— $234,379 
$— $234,379 $— $— $234,379 
Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities$4,340,205 $4,285,265 $— $— $8,625,470 
U.S. and Non-U.S. government obligations706,066 2,785,417 — — 3,491,483 
Corporate Bonds— 1,393,509 — — 1,393,509 
Exchange traded notes— 41,163 — — 41,163 
Currency forwards— 442,864 — (442,864)— 
Options18,022 — — — 18,022 
 $5,064,293 $8,948,218 $— $(442,864)$13,569,647 
Payables to broker dealers and clearing organizations:
Payables linked to digital assets$— $278,098 $— $— $278,098 
$— $278,098 $— $— $278,098 
(1) USDC is a stablecoin that can be redeemed on a one-to-one basis for U.S. dollars and is accounted for as a financial asset.
    

Fair value measurements for those items measured on a recurring basis are summarized below as of December 31, 2025:
 December 31, 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$1,511,213 $2,839,183 $— $— $4,350,396 
U.S. and Non-U.S. government obligations459,943 1,210,309 — — 1,670,252 
Corporate Bonds— 1,207,385 — — 1,207,385 
Exchange traded notes— 10,459 — — 10,459 
Currency forwards— 211,856 — (204,775)7,081 
Options97,459 — — — 97,459 
$2,068,615 $5,479,192 $— $(204,775)$7,343,032 
Financial instruments owned, pledged as collateral:
Equity securities$1,896,091 $1,304,254 $— $— $3,200,345 
Exchange traded notes— 8,180 — — 8,180 
$1,896,091 $1,312,434 $— $— $3,208,525 
Other Assets
Equity investment$— $— $86,491 $— $86,491 
Digital assets154,610 — — — 154,610 
Exchange stock1,020 — — — 1,020 
$155,630 $— $86,491 $— $242,121 
Receivables from broker dealers and clearing organizations:
Receivables linked to digital assets$— $328,934 $— $— $328,934 
$— $328,934 $— $— $328,934 
Liabilities
Financial instruments sold, not yet purchased, at fair value:
Equity securities$2,933,027 $2,784,522 $— $— $5,717,549 
U.S. and Non-U.S. government obligations234,169 1,155,901 — — 1,390,070 
Corporate Bonds— 1,754,517 — — 1,754,517 
Exchange traded notes— 26,135 — — 26,135 
Currency forwards— 198,463 — (198,463)— 
Options216,992 — — — 216,992 
 $3,384,188 $5,919,538 $— $(198,463)$9,105,263 
Payables to broker dealers and clearing organizations:
Payables linked to digital assets$— $181,272 $— $— $181,272 
$— $181,272 $— $— $181,272 

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, 2026 and December 31, 2025, 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, 2026
(in thousands)Fair ValueValuation TechniqueSignificant Unobservable InputRangeWeighted Average
Equity investment$85,903 Discounted cash flowEstimated revenue growth
5.0% - 9.5%
6.1 %
Discount rate
16.4% - 16.4%
16.4 %
MarketFuture enterprise value/ EBITDA ratio
10.4x - 19.6x
13.1x

December 31, 2025
(in thousands)Fair ValueValuation TechniqueSignificant Unobservable InputRangeWeighted Average
Equity investment$86,491 Discounted cash flowEstimated revenue growth
5.0% - 6.0%
5.3 %
Discount rate
16.2% - 16.2%
16.2 %
MarketFuture enterprise value/ EBITDA ratio
9.5x - 20.1x
15.0x

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, 2026
(in thousands)Balance at March 31, 2026PurchasesTotal Realized and Unrealized Gains / (Losses) (1)Net Transfers into (out of) Level 3SettlementBalance at June 30, 2026Change in Net Unrealized Gains / (Losses) on Investments still held at June 30, 2026
Assets
Other assets:
Equity investment$80,561 $— $5,342 $— $— $85,903 $5,342 
Other— — — — — — — 
Total$80,561 $— $5,342 $— $— $85,903 $5,342 
(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, 2025
(in thousands)
Balance at March 31, 2025
PurchasesTotal 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.
Six Months Ended June 30, 2026
(in thousands)Balance at December 31, 2025PurchasesTotal Realized and Unrealized Gains / (Losses) (1)Net Transfers into (out of) Level 3SettlementBalance at June 30, 2026Change in Net Unrealized Gains / (Losses) on Investments still held at June 30, 2026
Assets
Other assets:
Equity investment$86,491 $— $(588)$— $— $85,903 $(588)
Total$86,491 $— $(588)$— $— $85,903 $(588)
(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.

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, 2026:
 June 30, 2026
 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$1,069,254 $1,069,254 $1,069,254 $— $— 
Cash restricted or segregated under regulations and other63,759 63,759 63,759 — — 
Securities borrowed3,774,108 3,774,108 — 3,774,108 — 
Securities purchased under agreements to resell1,857,034 1,857,034 — 1,857,034 — 
Receivables from broker-dealers and clearing organizations2,973,085 2,973,085 — 2,973,085 — 
Receivables from customers309,953 309,953 — 309,953 — 
Other assets (1)53,683 53,683 14,574 39,109 — 
Total Assets$10,100,876 $10,100,876 $1,147,587 $8,953,289 $— 
Liabilities
Short-term borrowings$353,941 $355,359 $— $355,359 $— 
Long-term borrowings2,025,883 2,077,891 — 2,077,891 — 
Securities loaned4,089,659 4,089,659 — 4,089,659 — 
Securities sold under agreements to repurchase2,620,126 2,620,126 — 2,620,126 — 
Payables to broker-dealers and clearing organizations758,273 758,273 — 758,273 — 
Payables to customers226,743 226,743 — 226,743 — 
Other liabilities (2)39,395 39,395 — 39,395 — 
Total Liabilities$10,114,020 $10,167,446 $— $10,167,446 $— 
(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, 2025:
 December 31, 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$1,061,697 $1,061,697 $1,061,697 $— $— 
Cash restricted or segregated under regulations and other64,744 64,744 64,744 — — 
Securities borrowed3,191,138 3,191,138 — 3,191,138 — 
Securities purchased under agreements to resell988,929 988,929 — 988,929 — 
Receivables from broker-dealers and clearing organizations1,567,471 1,567,471 — 1,567,471 — 
Receivables from customers161,561 161,561 — 161,561 — 
Other assets (1)39,945 39,945 16,414 23,531 — 
Total Assets$7,075,485 $7,075,485 $1,142,855 $5,932,630 $— 
Liabilities
Short-term borrowings$12,382 $12,382 $— $12,382 $— 
Long-term borrowings2,039,463 2,098,639 — 2,098,639 — 
Securities loaned3,477,831 3,477,831 — 3,477,831 — 
Securities sold under agreements to repurchase1,405,639 1,405,639 — 1,405,639 — 
Payables to broker-dealers and clearing organizations817,004 817,004 — 817,004 — 
Payables to customers43,103 43,103 — 43,103 — 
Other liabilities (2)26,039 26,039 — 26,039 — 
Total Liabilities$7,821,461 $7,880,637 $— $7,880,637 $— 
(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, 2026 and December 31, 2025:

 June 30, 2026
 Gross Amounts of Recognized AssetsAmounts Offset in the Condensed Consolidated Statements 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$3,774,108 $— $3,774,108 $(3,714,317)$(24,243)$35,548 
Securities purchased under agreements to resell1,857,034 — 1,857,034 (1,855,760)— 1,274 
Trading assets, at fair value:
Currency forwards438,929 (435,831)3,098 — — 3,098 
Options19,359 — 19,359 — (15,089)4,270 
Total$6,089,430 $(435,831)$5,653,599 $(5,570,077)$(39,332)$44,190 
 Gross Amounts of Recognized LiabilitiesAmounts Offset in the Condensed Consolidated Statements 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$4,089,659 $— $4,089,659 $(4,033,807)$(41,486)$14,366 
Securities sold under agreements to repurchase2,620,126 — 2,620,126 (2,617,247)— 2,879 
Trading liabilities, at fair value:
Currency forwards442,864 (442,864)— — — — 
Options18,022 — 18,022 — (17,584)438 
Total$7,170,671 $(442,864)$6,727,807 $(6,651,054)$(59,070)$17,683 

 December 31, 2025
 Gross Amounts of Recognized AssetsAmounts Offset in the Condensed Consolidated Statements 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$3,191,138 $— $3,191,138 $(3,083,612)$(53,461)$54,065 
Securities purchased under agreements to resell988,929 — 988,929 (988,274)— 655 
Trading assets, at fair value:
Currency forwards211,856 (204,775)7,081 — — 7,081 
Options97,459 — 97,459 — (96,708)751 
Total$4,489,382 $(204,775)$4,284,607 $(4,071,886)$(150,169)$62,552 
Gross Amounts of Recognized LiabilitiesAmounts Offset in the Condensed Consolidated Statements 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$3,477,831 $— $3,477,831 $(3,382,370)$(67,690)$27,771 
Securities sold under agreements to repurchase1,405,639 — 1,405,639 (1,404,924)— 715 
Payables to broker-dealers and clearing organizations:
Interest rate swaps— — — — — — 
Trading liabilities, at fair value:
Currency forwards198,463 (198,463)— — — — 
Options216,992 — 216,992 — (96,708)120,284 
Total$5,298,925 $(198,463)$5,100,462 $(4,787,294)$(164,398)$148,770 

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, 2026 and December 31, 2025:

 June 30, 2026
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$175,000 $115,000 $85,000 $150,000 $— $525,000 
U.S. and Non-U.S. government obligations2,095,126 — — — — 2,095,126 
Total$2,270,126 $115,000 $85,000 $150,000 $— $2,620,126 
Securities loaned:
Equity securities$4,089,659 $— $— $— $— $4,089,659 
Total$4,089,659 $— $— $— $— $4,089,659 

 December 31, 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$— $315,000 $85,000 $100,000 $— $500,000 
U.S. and Non-U.S. government obligations905,639 — — — — 905,639 
Total$905,639 $315,000 $85,000 $100,000 $— $1,405,639 
Securities loaned:
Equity securities$3,477,831 $— $— $— $— $3,477,831 
Total$3,477,831 $— $— $— $— $3,477,831