Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | MKTX | |
Entity Registrant Name | MARKETAXESS HOLDINGS INC. | |
Entity Central Index Key | 0001278021 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 38,000,372 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $0.003 par value | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-34091 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 52-2230784 | |
Entity Address, Address Line One | 55 Hudson Yards | |
Entity Address, Address Line Two | 15th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
City Area Code | 212 | |
Local Phone Number | 813-6000 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 413,612 | $ 460,858 |
Cash segregated under federal regulations | 50,108 | 50,059 |
Investments, at fair value | 35,838 | 28,111 |
Accounts receivable, net of allowance of $57 and $163 as of June 30, 2021 and December 31, 2020, respectively | 87,125 | 79,577 |
Receivables from broker-dealers, clearing organizations and customers | 475,739 | 279,915 |
Goodwill | 154,789 | 147,388 |
Intangible assets, net of accumulated amortization | 119,989 | 95,354 |
Furniture, equipment, leasehold improvements and capitalized software, net of accumulated depreciation and amortization | 93,108 | 85,204 |
Operating lease right-of-use assets | 73,906 | 75,924 |
Prepaid expenses and other assets | 33,709 | 29,039 |
Total assets | 1,537,923 | 1,331,429 |
Liabilities | ||
Accrued employee compensation | 39,278 | 62,326 |
Payables to broker-dealers, clearing organizations and customers | 278,303 | 133,326 |
Income and other tax liabilities | 41,345 | 42,750 |
Accounts payable, accrued expenses and other liabilities | 65,872 | 44,354 |
Operating lease liabilities | 91,265 | 93,612 |
Total liabilities | 516,063 | 376,368 |
Commitments and Contingencies (Note 13) | ||
Stockholders' equity | ||
Preferred stock | ||
Common stock | 123 | 123 |
Additional paid-in capital | 313,683 | 329,742 |
Treasury stock - Common stock voting, at cost, 2,873,659 and 2,845,770 shares as of June 30, 2021 and December 31, 2020, respectively | (183,479) | (169,523) |
Retained earnings | 896,977 | 799,369 |
Accumulated other comprehensive loss | (5,444) | (4,650) |
Total stockholders' equity | 1,021,860 | 955,061 |
Total liabilities and stockholders' equity | 1,537,923 | 1,331,429 |
Series A Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Allowance for accounts receivable | $ 57 | $ 163 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 4,855,000 | 4,855,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.003 | $ 0.003 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 40,882,143 | 40,851,100 |
Common stock, shares outstanding | 38,008,484 | 38,005,330 |
Treasury stock, shares | 2,873,659 | 2,845,770 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 110,000 | 110,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock Non-Voting [Member] | ||
Common stock, par value | $ 0.003 | $ 0.003 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | ||||
Revenues | $ 176,334 | $ 184,795 | $ 371,798 | $ 353,773 |
Expenses | ||||
Employee compensation and benefits | 40,732 | 41,636 | 88,820 | 82,830 |
Depreciation and amortization | 13,097 | 8,305 | 24,876 | 16,372 |
Technology and communications | 10,544 | 8,592 | 20,580 | 16,753 |
Professional and consulting fees | 10,704 | 8,065 | 20,344 | 13,740 |
Occupancy | 3,300 | 3,286 | 6,617 | 6,760 |
Marketing and advertising | 3,128 | 1,810 | 4,332 | 4,485 |
Clearing costs | 4,372 | 5,713 | 9,066 | 11,223 |
General and administrative | 3,280 | 3,253 | 6,512 | 6,386 |
Total expenses | 89,157 | 80,660 | 181,147 | 158,549 |
Operating income | 87,177 | 104,135 | 190,651 | 195,224 |
Other income (expense) | ||||
Investment income | 107 | 714 | 214 | 1,983 |
Interest expense | (171) | (362) | ||
Other, net | (1,060) | (446) | (2,649) | (1,102) |
Total other income (expense) | (1,124) | 268 | (2,797) | 881 |
Income before income taxes | 86,053 | 104,403 | 187,854 | 196,105 |
Provision for income taxes | 18,765 | 20,549 | 40,109 | 37,435 |
Net income | $ 67,288 | $ 83,854 | $ 147,745 | $ 158,670 |
Net income per common share | ||||
Basic | $ 1.79 | $ 2.25 | $ 3.94 | $ 4.25 |
Diluted | 1.77 | 2.20 | 3.87 | 4.16 |
Cash dividends declared per common share | $ 0.66 | $ 0.60 | $ 1.32 | $ 1.20 |
Weighted average shares outstanding | ||||
Basic | 37,508 | 37,340 | 37,489 | 37,322 |
Diluted | 38,104 | 38,153 | 38,129 | 38,115 |
Commissions [Member] | ||||
Revenues | ||||
Revenues | $ 156,431 | $ 172,092 | $ 332,269 | $ 328,046 |
Information Services [Member] | ||||
Revenues | ||||
Revenues | 9,844 | 8,427 | 19,006 | 17,069 |
Post-trade Services [Member] | ||||
Revenues | ||||
Revenues | 9,848 | 4,054 | 20,109 | 8,207 |
Other [Member] | ||||
Revenues | ||||
Revenues | $ 211 | $ 222 | $ 414 | $ 451 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 67,288 | $ 83,854 | $ 147,745 | $ 158,670 |
Net cumulative translation adjustment and foreign currency exchange hedge, net of tax of $(133), $121, $(546), and $2,562, respectively | 1,138 | (351) | (794) | (4,210) |
Net unrealized gain on securities available-for-sale, net of tax of $259 and $104, respectively | 820 | 329 | ||
Comprehensive income | $ 68,426 | $ 84,323 | $ 146,951 | $ 154,789 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Foreign currency exchange hedge, tax expense (benefit) | $ (133) | $ 121 | $ (546) | $ 2,562 |
Securities available-for-sale, tax expense (benefit) | $ 259 | $ 104 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock Voting [Member] | Additional Paid-In Capital [Member] | Treasury Stock - Common Stock Voting [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Dec. 31, 2019 | $ 770,091 | $ 122 | $ 342,541 | $ (153,388) | $ 591,086 | $ (10,270) |
Net income | 74,816 | 74,816 | ||||
Cumulative translation adjustment and foreign currency exchange hedge, net of tax | (3,859) | (3,859) | ||||
Unrealized net (loss) gain on securities available-for-sale, net of tax | (491) | (491) | ||||
Stock-based compensation | 6,677 | 6,677 | ||||
Exercise of stock options | 80 | 80 | ||||
Withholding tax payments on restricted stock vesting and stock option exercises | (21,243) | (21,243) | ||||
Repurchases of common stock | (5,415) | (5,415) | ||||
Cash dividend on common stock | (22,773) | (22,773) | ||||
Ending Balance at Mar. 31, 2020 | 797,883 | 122 | 328,055 | (158,803) | 643,129 | (14,620) |
Beginning Balance at Dec. 31, 2019 | 770,091 | 122 | 342,541 | (153,388) | 591,086 | (10,270) |
Net income | 158,670 | |||||
Cumulative translation adjustment and foreign currency exchange hedge, net of tax | (4,210) | |||||
Ending Balance at Jun. 30, 2020 | 853,484 | 122 | 327,970 | (164,676) | 704,219 | (14,151) |
Beginning Balance at Mar. 31, 2020 | 797,883 | 122 | 328,055 | (158,803) | 643,129 | (14,620) |
Net income | 83,854 | 83,854 | ||||
Cumulative translation adjustment and foreign currency exchange hedge, net of tax | (351) | (351) | ||||
Unrealized net (loss) gain on securities available-for-sale, net of tax | 820 | 820 | ||||
Stock-based compensation | 5,791 | 5,791 | ||||
Exercise of stock options | 659 | 659 | ||||
Withholding tax payments on restricted stock vesting and stock option exercises | (6,535) | (6,535) | ||||
Repurchases of common stock | (5,873) | (5,873) | ||||
Cash dividend on common stock | (22,764) | (22,764) | ||||
Ending Balance at Jun. 30, 2020 | 853,484 | 122 | 327,970 | (164,676) | 704,219 | (14,151) |
Beginning Balance at Dec. 31, 2020 | 955,061 | 123 | 329,742 | (169,523) | 799,369 | (4,650) |
Net income | 80,457 | 80,457 | ||||
Cumulative translation adjustment and foreign currency exchange hedge, net of tax | (1,932) | (1,932) | ||||
Stock-based compensation | 7,424 | 7,424 | ||||
Exercise of stock options | 244 | 244 | ||||
Withholding tax payments on restricted stock vesting and stock option exercises | (27,422) | (27,422) | ||||
Repurchases of common stock | (520) | (520) | ||||
Cash dividend on common stock | (25,079) | (25,079) | ||||
Ending Balance at Mar. 31, 2021 | 988,233 | 123 | 309,988 | (170,043) | 854,747 | (6,582) |
Beginning Balance at Dec. 31, 2020 | 955,061 | 123 | 329,742 | (169,523) | 799,369 | (4,650) |
Net income | 147,745 | |||||
Cumulative translation adjustment and foreign currency exchange hedge, net of tax | (794) | |||||
Ending Balance at Jun. 30, 2021 | 1,021,860 | 123 | 313,683 | (183,479) | 896,977 | (5,444) |
Beginning Balance at Mar. 31, 2021 | 988,233 | 123 | 309,988 | (170,043) | 854,747 | (6,582) |
Net income | 67,288 | 67,288 | ||||
Cumulative translation adjustment and foreign currency exchange hedge, net of tax | 1,138 | 1,138 | ||||
Stock-based compensation | 6,134 | 6,134 | ||||
Exercise of stock options | 4,421 | 4,421 | ||||
Withholding tax payments on restricted stock vesting and stock option exercises | (6,860) | (6,860) | ||||
Repurchases of common stock | (13,436) | (13,436) | ||||
Cash dividend on common stock | (25,058) | (25,058) | ||||
Ending Balance at Jun. 30, 2021 | $ 1,021,860 | $ 123 | $ 313,683 | $ (183,479) | $ 896,977 | $ (5,444) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||||||
Cash dividends declared per common share | $ 0.66 | $ 0.66 | $ 0.60 | $ 0.60 | $ 1.32 | $ 1.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 147,745 | $ 158,670 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 24,876 | 16,372 |
Amortization of operating lease right-of-use assets | 3,368 | 3,325 |
Stock-based compensation expense | 13,558 | 12,468 |
Deferred taxes | 1,600 | 4,741 |
Other | (176) | 2,199 |
Changes in operating assets and liabilities: | ||
(Increase) in accounts receivable | (7,434) | (37,457) |
(Increase) in receivables from broker-dealers, clearing organizations and customers | (211,434) | |
(Increase) decrease in prepaid expenses and other assets | (4,624) | 6,124 |
(Increase) decrease in trading investments | (5,569) | 63,274 |
(Decrease) in accrued employee compensation | (23,048) | (7,931) |
Increase in payables to broker-dealers, clearing organizations and customers | 144,977 | |
(Decrease) increase in income and other tax liabilities | (3,101) | 3,839 |
(Decrease) increase in accounts payable, accrued expenses and other liabilities | (1,479) | 4,029 |
(Decrease) in operating lease liabilities | (3,732) | (3,072) |
Net cash provided by operating activities | 73,567 | 225,222 |
Cash flows from investing activities | ||
Acquisitions, net of cash and cash equivalents acquired | (17,078) | (533) |
Proceeds from maturities and sales, available-for-sale investments | 68,596 | |
Purchases, available-for-sale investments | (32,865) | |
Purchases of furniture, equipment and leasehold improvements | (9,809) | (9,264) |
Capitalization of software development costs | (16,459) | (13,003) |
Net cash (used in) provided by investing activities | (43,346) | 12,931 |
Cash flows from financing activities | ||
Cash dividend on common stock | (50,238) | (45,668) |
Exercise of stock options | 4,665 | 739 |
Withholding tax payments on restricted stock vesting and stock option exercises | (34,282) | (27,778) |
Repurchases of common stock | (13,956) | (11,288) |
Proceeds from short-term borrowings | 70,348 | |
Repayments of short-term borrowings | (69,302) | |
Net cash (used in) financing activities | (92,765) | (83,995) |
Effect of exchange rate changes on cash and cash equivalents | (263) | (3,678) |
Cash and cash equivalents including restricted cash | ||
Net (decrease) increase for the period | (62,807) | 150,480 |
Beginning of period | 608,050 | 274,253 |
End of period | 545,243 | 424,733 |
Supplemental cash flow information | ||
Cash paid for income taxes | 36,798 | 24,068 |
Cash paid for interest | 362 | |
Non-cash activity | ||
Contingent consideration payable assumed in connection with acquisition | 22,450 | |
Exercise of stock options - cashless | 2,750 | 5,119 |
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 1,208 | 688 |
Mutual Funds Held In Rabbi Trust [Member] | ||
Changes in operating assets and liabilities: | ||
(Increase) decrease in trading investments | $ (1,960) | $ (1,359) |
Organization and Principal Busi
Organization and Principal Business Activity | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization and Principal Business Activity | 1. Organization and Principal Business Activity MarketAxess Holdings Inc. (the “Company” or “MarketAxess”) was incorporated in the State of Delaware on April 11, 2000. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated. These consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The consolidated financial information as of December 31, 2020 has been derived from audited financial statements not included herein. These unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) with respect to Form 10-Q and reflect all adjustments that, in the opinion of management, are normal and recurring, and that are necessary for a fair statement of the results for the interim periods presented. In accordance with such rules and regulations, certain disclosures that are normally included in annual financial statements have been omitted. Interim period operating results may not be indicative of the operating results for a full year. Certain reclassifications have been made to the prior periods’ consolidated financial statements in order to conform to the current period presentation. Such reclassifications are immaterial, individually and in the aggregate, to both current and all previously issued financial statements taken as a whole and have no effect on previously reported net income. Accounting Pronouncements, Not Yet Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (the “ASU”), which is designed to ease the potential burden in accounting for the transition away from the London Inter-bank Offered Rate (“LIBOR”). The ASU applies to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued and replaced with alternative reference rates as a result of reference rate reform. The ASU provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The ASU was effective for all entities as of March 12, 2020 and can be adopted from this date through December 31, 2022. The Company does not expect adoption of this ASU to have a material impact on its Consolidated Financial Statements. Cash and Cash Equivalents The Company defines cash equivalents as short-term interest-bearing investments with maturities at the time of purchase of three months or less. Investments The Company determines the appropriate classification of securities at the time of purchase which are recorded in the Consolidated Statements of Financial Condition on the trade date. Securities are classified as available-for-sale or trading. Available-for-sale investments are carried at fair value with the unrealized gains or losses reported in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Trading investments include investment grade corporate debt securities carried at fair value, with realized and unrealized gains or losses included in other, net in the Consolidated Statements of Operations. Fair Value Financial Instruments Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” A three-tiered hierarchy for determining fair value has been established that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as Level 1 (unadjusted quoted prices for identical assets or liabilities in active markets), Level 2 (inputs that are observable in the marketplace other than those inputs classified in Level 1) and Level 3 (inputs that are unobservable in the marketplace). The Company’s financial assets and liabilities measured at fair value on a recurring basis consist of its money market funds, securities available-for-sale, trading securities, foreign currency forward contracts, and contingent consideration payable associated with acquisitions. All other financial instruments are short-term in nature and the carrying amount is reported on the Consolidated Statements of Financial Condition at approximate fair value. Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers Receivables from broker-dealers, clearing organizations and customers include amounts receivable for securities not delivered by the Company to the purchaser by the settlement date (‘‘securities failed-to-deliver’’) and cash deposits held at clearing organizations and clearing brokers to facilitate the settlement and clearance of matched principal transactions. Payables to broker-dealers, clearing organizations and customers include amounts payable for securities not received by the Company from a seller by the settlement date (‘‘securities failed-to-receive’’). Securities failed-to-deliver and securities failed-to-receive for transactions executed between and among institutional investor and broker-dealer clients on a matched principal basis where the Company serves as a counterparty to both the buyer and the seller are recorded on a settlement date basis. The Company presents its securities failed-to-deliver and securities failed-to-receive balances on a net-by-counterparty basis within receivables from and payables to broker-dealers, clearing organizations and customers. The difference between the Company’s trade-date receivables and payables for unsettled matched principal transactions reflects commissions earned and is recorded within accounts receivable, net on a trade-date basis. Allowance for Credit Losses All accounts receivable have contractual maturities of less than one year and are derived from trading-related fees and commissions and revenues from products and services. The Company continually monitors collections and payments from its customers and maintains an allowance for doubtful accounts. The allowance for credit losses is based on an estimate of the amount of potential credit losses in existing accounts receivable, as determined from a review of aging schedules, past due balances, historical collection experience and other specific collection issues that have been identified. Account balances are grouped for evaluation based on various risk characteristics, including billing type, legal entity, and geographic region. Additions to the allowance for credit losses are charged to bad debt expense, which is included in general and administrative expense in the Company’s Consolidated Statements of Operations. Balances that are determined to be uncollectable are written off against the allowance for credit losses. Depreciation and Amortization Fixed assets are carried at cost less accumulated depreciation. The Company uses the straight-line method of depreciation over three to seven years. The Company amortizes leasehold improvements on a straight-line basis over the lesser of the life of the improvement or the remaining term of the lease. Software Development Costs The Company capitalizes certain costs associated with the development of internal use software, including, among other items, employee compensation and related benefits and third party consulting costs at the point at which the conceptual formulation, design and testing of possible software project alternatives have been completed. Once the product is ready for its intended use, such costs are amortized on a straight-line basis over three years. The Company reviews the amounts capitalized for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. Cloud Computing Costs The Company capitalizes certain costs associated with cloud computing arrangements, including, among other items, employee compensation and related benefits and third party consulting costs that are part of the application development stage. These costs are setup as a prepaid asset on the Consolidated Statement of Financial Condition and are amortized over the period of the hosting service contract. The Company reviews the amounts capitalized for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. Foreign Currency Translation and Forward Contracts Assets and liabilities denominated in foreign currencies are translated using exchange rates at the end of the period; revenues and expenses are translated at average monthly rates. Gains and losses on foreign currency translation are a component of accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Transaction gains and losses are recorded in other, net in the Consolidated Statements of Operations. The Company enters into foreign currency forward contracts to hedge its net investment in its U.K. subsidiaries. Gains and losses on these transactions are included in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Revenue Recognition The Company’s classification of revenues in the Consolidated Statements of Operations represents revenues from contracts with customers disaggregated by type of revenue. The Company has four revenue streams as described below. Commission Revenue – The Company charges its broker-dealer clients variable transaction fees for trades executed on its platforms and, under certain plans, distribution fees or monthly minimum fees to use the platforms for a particular product area. Variable transaction fees are recognized on a trade date basis, are generally calculated as a percentage of the notional dollar volume of bonds traded on the platforms and vary based on the type, size, yield and maturity of the bond traded, as well as individual client incentives. Bonds that are more actively traded or that have shorter maturities generally generate lower commissions, while bonds that are less actively traded or that have longer maturities generally command higher commissions. Under the Company’s disclosed trading transaction fee plans, variable transaction fees, distribution fees and unused monthly fee commitments are invoiced and recorded on a monthly basis. For Open Trading trades that the Company executes between and among institutional investor and broker-dealer clients on a matched principal basis by serving as counterparty to both the buyer and the seller, the Company earns its commission through the difference in price between the two trades. The commission is collected upon settlement of the trade, which typically occurs within one to two trading days after the trade date. For U.S. Treasury matched principal trades, commissions are invoiced and recorded on a monthly basis. The following table presents commission revenue by fee type: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Commission revenue by fee type Variable transaction fees Disclosed trading $ 84,581 $ 95,634 $ 183,399 $ 179,879 Open Trading - matched principal trading 39,881 47,373 86,201 87,731 U.S. Treasuries - matched principal trading 2,637 3,024 5,897 7,587 Total variable transaction fees 127,099 146,031 275,497 275,197 Distribution fees and unused minimum fees 29,332 26,061 56,772 52,849 Total commissions $ 156,431 $ 172,092 $ 332,269 $ 328,046 Information services – Information services includes data licensed to the Company’s broker-dealer clients, institutional investor clients and data-only subscribers; professional and consulting services; technology software licenses; and maintenance and support services. The nature and timing of each performance obligation may vary as these contracts are either subscription-based services transferred over time, and may be net of volume-based discounts, or one-time services that are transferred at a point in time. Revenues for services transferred over time are recognized ratably over the contract period as the Company’s performance obligation is met whereas revenues for services transferred at a point in time are recognized in the period the services are provided. Customers are generally billed monthly, quarterly, or annually; revenues billed in advance are deferred and recognized ratably over the contract period. The following table presents information services revenue by timing of recognition: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Information services revenue by timing of recognition Services transferred over time $ 9,512 $ 7,819 $ 18,557 $ 15,625 Services transferred at a point in time 332 608 449 1,444 Total information services revenues $ 9,844 $ 8,427 $ 19,006 $ 17,069 Post-trade services – Post-trade services revenue is generated from regulatory transaction reporting, trade publication and trade matching services. Customers are generally billed in the current month or monthly in arrears and revenue is recognized in the period transactions are processed. Revenues billed in advance are deferred and recognized ratably over the contract period. The Company also generates one-time implementation fees for onboarding clients which are invoiced and recognized in the period the implementation is completed. The following table presents post-trade services revenue by timing of recognition: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Post-trade services revenue by timing of recognition Services transferred over time $ 9,848 $ 3,948 $ 20,100 $ 8,098 Services transferred at a point in time — 106 9 109 Total post-trade services revenues $ 9,848 $ 4,054 $ 20,109 $ 8,207 Other revenues – Other revenues primarily includes revenue from telecommunications line charges to broker-dealer clients. Contract liabilities consist of deferred revenues that the Company records when cash payments are received or due in advance of services to be performed. The revenue recognized from contract liabilities and the remaining balance is shown below: December 31, 2020 Payments received in advance of services to be performed Revenue recognized for services performed during the period Foreign Currency Translation June 30, 2021 (In thousands) Information services $ 3,203 $ 5,060 $ (4,967 ) $ — $ 3,296 Post-trade services 1,045 8,395 (8,056 ) 15 1,399 Total deferred revenue $ 4,248 $ 13,455 $ (13,023 ) $ 15 $ 4,695 The majority of the Company’s contracts are short-term in nature with durations of less than one year. For contracts with original durations extending beyond one year, the aggregate amount of the transaction price allocated to remaining performance obligations was $21.3 million as of June 30, 2021. The Company expects to recognize revenue associated with the remaining performance obligations over the next 35 months. Stock-Based Compensation The Company measures and recognizes compensation expense for all share-based payment awards based on their estimated fair values measured as of the grant date. These costs are recognized as an expense in the Consolidated Statements of Operations over the requisite service period, which is typically the vesting period, with an offsetting increase to additional paid-in capital. Forfeitures are recognized as they occur. Income Taxes Income taxes are accounted for using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized against deferred tax assets if it is more likely than not that such assets will not be realized in future years. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statements of Operations. All tax effects related to share-based payments are recorded in the provision for income taxes in the periods during which the awards are exercised or vest. Business Combinations, Goodwill and Intangible Assets Business combinations are accounted for under the purchase method of accounting. The total cost of an acquisition is allocated to the underlying net assets based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of certain assets acquired and liabilities assumed requires judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash flows, discount rates, growth rates and asset lives. The Company operates as a single reporting unit. Following an acquisition, goodwill no longer retains its identification with a particular acquisition, but instead becomes identifiable with the entire reporting unit. As a result, all of the fair value of the Company is available to support the value of goodwill. An impairment review of goodwill is performed on an annual basis, at year-end, or more frequently if circumstances change. Intangible assets with definite lives, including purchased technologies, customer relationships and other intangible assets, are amortized over their estimated useful lives which range from one to 15 years using either a straight-line or accelerated amortization method based on the pattern of economic benefit the Company expects to realize from such assets. Intangible assets are assessed for impairment when events or circumstances indicate the existence of a possible impairment. Earnings Per Share Basic earnings per share is computed by dividing the net income attributable to common stock by the weighted-average number of shares of common stock outstanding during the period. For purposes of computing diluted earnings per share, the weighted-average shares outstanding of common stock reflects the dilutive effect that could occur if convertible securities or other contracts to issue common stock were converted into or exercised for common stock. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 6 Months Ended |
Jun. 30, 2021 | |
Brokers And Dealers [Abstract] | |
Regulatory Capital Requirements | 3. Regulatory Capital Requirements Certain U.S. subsidiaries of the Company are registered as a broker-dealer or swap execution facility (“SEF”) and therefore are subject to the applicable rules and regulations of the SEC, the Financial Industry Regulatory Authority (“FINRA”) and the Commodity Futures Trading Commission (“CFTC”). These rules contain minimum net capital requirements, as defined in the applicable regulations, and also may require that a significant part of the registrants’ assets be kept in relatively liquid form. Certain of the Company’s foreign subsidiaries are regulated by the Financial Conduct Authority (“FCA”) in the U.K. or other foreign regulators and must maintain financial resources, as defined in the applicable regulations, in excess of the applicable financial resources requirement. As of June 30, 2021, each of the Company’s subsidiaries that are subject to these regulations had net capital or financial resources in excess of their minimum requirements. As of June 30, 2021, the Company’s subsidiaries maintained aggregate net capital and financial resources that were $551.0 million in excess of the required levels of $22.6 million. One of the Company’s U.S. broker-dealer subsidiaries is required to segregate funds in a special reserve bank account for the benefit of customers pursuant to Rule 15c3-3 of the Securities Exchange Act of 1934. As of June 30, 2021, the broker-dealer subsidiary had a balance of $50.1 million in its special reserve bank account. This broker-dealer subsidiary also maintained net capital that was $343.7 million in excess of the required level of $3.6 million. Each of the Company’s U.S. and foreign regulated subsidiaries are subject to local regulations which generally prohibit repayment of borrowings from the Company or affiliates, paying cash dividends, making loans to the Company or affiliates or otherwise entering into transactions that result in a significant reduction in regulatory net capital or financial resources without prior notification to or approval from such regulated entity’s principal regulator. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The following table summarizes the valuation of the Company’s assets and liabilities measured at fair value as categorized based on the hierarchy described in Note 2. Level 1 Level 2 Level 3 Total (In thousands) As of June 30, 2021 Assets Money market funds $ 19,173 $ — $ — $ 19,173 Trading securities U.S. Treasuries — 24,990 — 24,990 Mutual funds held in rabbi trust — 10,848 — 10,848 Foreign currency forward position — 1,595 — 1,595 Total assets $ 19,173 $ 37,433 $ — $ 56,606 Liabilities Contingent consideration payable $ — $ — $ 36,992 $ 36,992 As of December 31, 2020 Assets Money market funds $ 20,856 $ — $ — $ 20,856 Trading securities Corporate debt — 19,222 — 19,222 Mutual funds held in rabbi trust — 8,889 — 8,889 Total assets $ 20,856 $ 28,111 $ — $ 48,967 Liabilities Contingent consideration payable $ — $ — $ 15,026 $ 15,026 Foreign currency forward position — 805 — 805 Total liabilities $ — $ 805 $ 15,026 $ 15,831 Securities classified within Level 2 were valued using a market approach utilizing prices and other relevant information generated by market transactions involving comparable assets. The foreign currency forward contracts are classified within Level 2 as the valuation inputs are based on quoted market prices. The mutual funds held in a rabbi trust represent investments associated with the Company’s deferred cash incentive plan. Liabilities classified within Level 3 reflect contingent consideration payable assumed as part of acquisitions. During the six months ended June 30, 2021, $22.5 million of contingent consideration payable was recognized in connection with a business combination. Significant unobservable inputs used in the valuation of contingent consideration payable include estimates of client retention, electronic order flow and license fees over periods of 18 to 24 months The table below presents the carrying value, fair value and fair value hierarchy category of the Company's financial assets and liabilities that are not measured at fair value on the Consolidated Statement of Financial Condition. The carrying values of the Company's financial assets and liabilities not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximate fair value due to the short-term nature of the underlying assets and liabilities. Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) As of June 30, 2021 Financial assets not measured at fair value: Cash and cash equivalents $ 413,612 $ 413,612 $ 413,612 $ — $ — $ 413,612 Cash segregated under federal regulations 50,108 50,108 50,108 — — 50,108 Accounts receivable, net of allowance 87,125 87,125 — 87,125 — 87,125 Receivables from broker-dealers, clearing organizations and customers 475,739 475,739 81,433 394,306 — 475,739 Total $ 1,026,584 $ 1,026,584 $ 545,153 $ 481,431 $ — $ 1,026,584 Financial liabilities not measured at fair value: Payables to broker-dealers, clearing organizations and customers $ 278,303 $ 278,303 $ — $ 278,303 $ — $ 278,303 As of December 31, 2020 Financial assets not measured at fair value: Cash and cash equivalents $ 460,858 $ 460,858 $ 460,858 $ — $ — $ 460,858 Cash segregated under federal regulations 50,059 50,059 50,059 — — 50,059 Accounts receivable, net of allowance 79,577 79,577 — 79,577 — 79,577 Receivables from broker-dealers, clearing organizations and customers 279,915 279,915 97,043 182,872 — 279,915 Total $ 870,409 $ 870,409 $ 607,960 $ 262,449 $ — $ 870,409 Financial liabilities not measured at fair value: Payables to broker-dealers, clearing organizations and customers $ 133,326 $ 133,326 $ — $ 133,326 $ — $ 133,326 The Company enters into foreign currency forward contracts to hedge the net investment in the Company’s U.K. subsidiaries. The Company designates each foreign currency forward contract as a hedge and assesses the risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure and how effectiveness is to be assessed prospectively and retrospectively. These hedges are for a one-month As of June 30, 2021 December 31, 2020 (In thousands) Notional value $ 183,907 $ 157,057 Fair value of notional 182,312 157,862 Fair value of the asset (liability) $ 1,595 $ (805 ) The following table summarizes the Company’s investments: Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) As of June 30, 2021 Trading securities U.S. Treasuries $ 24,989 $ 1 $ — $ 24,990 Mutual funds held in rabbi trust 9,941 907 — 10,848 Total investments $ 34,930 $ 908 $ — $ 35,838 As of December 31, 2020 Trading securities Corporate debt $ 19,081 $ 141 $ — $ 19,222 Mutual funds held in rabbi trust 7,680 1,209 — 8,889 Total investments $ 26,761 $ 1,350 $ — $ 28,111 The following table summarizes the fair value of the investments based upon the contractual maturities: As of June 30, 2021 December 31, 2020 (In thousands) Less than one year $ 10,848 $ 18,290 Due in 1 - 5 years 24,990 9,821 Total $ 35,838 $ 28,111 Proceeds from the sales and maturities of investments during the six months ended June 30, 2021 and 2020 were $19.4 million and $144.4 million, respectively. |
Receivables from and Payables t
Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers | 6 Months Ended |
Jun. 30, 2021 | |
Due To And From Broker Dealers And Clearing Organizations [Abstract] | |
Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers | 5. Receivables from and Payables to Broker-dealers, Clearing organizations and Customers Receivables from and payables to broker-dealers, clearing organizations and customers consisted of the following: June 30, 2021 December 31, 2020 Receivables from broker-dealers, clearing organizations and customers: (In thousands) Securities failed-to-deliver - broker-dealers $ 131,125 $ 93,294 Securities failed-to-deliver - customers 259,790 87,685 Deposits with clearing organizations and broker-dealers 81,433 97,043 Other 3,391 1,893 Total $ 475,739 $ 279,915 Payables to broker-dealers, clearing organizations and customers: Securities failed-to-receive - broker-dealers 202,794 70,917 Securities failed-to-receive - customers 72,069 60,784 Other 3,440 1,625 Total $ 278,303 $ 133,326 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 6. Acquisitions On April 9, 2021, the Company acquired MuniBrokers LLC, a central electronic venue serving municipal bond brokers and dealers On November 30, 2020, the Company acquired Regulatory Services GmbH, the pan-European regulatory reporting business of Deutsche B örse Group . The purchase price consists of $22.5 million in cash paid at closing and up to $24.6 million in contingent consideration payable in cash within 18 months of the closing. The Company is accounting for the transaction as a purchase of assets and recorded $37.4 million in amortizable intangible assets as of the acquisition date. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Goodwill and intangible assets with indefinite lives was $154.8 million and $147.4 million as of June 30, 2021 and December 31, 2020, respectively. Intangible assets that are subject to amortization, including the related accumulated amortization, are comprised of the following: June 30, 2021 December 31, 2020 Cost Accumulated amortization Net carrying amount Cost Accumulated amortization Net carrying amount (In thousands) Customer relationships $ 128,564 $ (13,153 ) $ 115,411 $ 102,696 $ (7,369 ) $ 95,327 Technology and other intangibles 11,430 (6,852 ) 4,578 6,550 (6,523 ) 27 Total $ 139,994 $ (20,005 ) $ 119,989 $ 109,246 $ (13,892 ) $ 95,354 Amortization expense associated with identifiable intangible assets was $6.1 million and $1.3 million for the six months ended June 30, 2021 and 2020, respectively. Annual estimated total amortization expense is $13.0 million, $16.3 million, $17.2 million, $14.9 million and $12.0 million, respectively, for 2021 through 2025. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The provision for income taxes consists of the following: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Current: (In thousands) Federal $ 5,852 $ 10,887 $ 18,375 $ 18,653 State and local 6,283 3,917 9,694 6,827 Foreign 5,621 3,741 10,440 7,188 Total current provision 17,756 18,545 38,509 32,668 Deferred: Federal 1,275 1,475 1,877 3,380 State and local 302 266 403 618 Foreign (568 ) 263 (680 ) 769 Total deferred provision 1,009 2,004 1,600 4,767 Provision for income taxes $ 18,765 $ 20,549 $ 40,109 $ 37,435 Effective tax rate 21.8 % 19.7 % 21.4 % 19.1 % T he Company recognized excess tax benefits on share-based payments of $ million and $ million through the provision for income taxes for the three months ended June 30, 2021 and 2020, respectively, and $9.7 million and $12.0 million for the six months ended June 30, 2021, and 2020, respectively. The Company or one of its subsidiaries files U.S. federal, state and foreign income tax returns. The Company is currently under a New York State income tax examination for the tax years 2010 through 2017 and a New York City income tax examination for the tax years 2016 through 2018. At this time, the Company cannot estimate when the examinations will conclude or the impact such examinations will have on the Company’s Consolidated Financial Statements, if any. Generally, other than New York City and State, the Company is no longer subject to tax examinations by tax authorities for years prior to 2017. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Plans | 9. Stock-Based Compensation Plans Total stock-based compensation expense was as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Employees $ 5,920 $ 5,512 $ 13,023 $ 11,911 Non-employee directors 214 279 535 557 Total stock-based compensation $ 6,134 $ 5,791 $ 13,558 $ 12,468 The Company records stock-based compensation expense for employees in employee compensation and benefits and for non-employee directors in general and administrative expenses in the Consolidated Statements of Operations. During the six months ended June 30, 2021, the Company granted to employees a total of 37,703 shares of restricted stock or restricted stock units, 15,982 options to purchase shares of common stock and performance-based shares with an expected pay-out at target of 12,185 shares of common stock. The fair value of the restricted stock and performance-based share awards was based on a weighted-average fair value per share at the grant date of $527.74 and $523.00, respectively. Based on the Black-Scholes option pricing model, the weighted-average fair value for each option granted was $138.51 per share. As of June 30, 2021, the total unrecognized compensation cost related to all non-vested awards was $46.7 million. That cost is expected to be recognized over a weighted-average period of 2.0 years. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 10. Earnings Per Share The following table sets forth basic and diluted weighted average shares outstanding used to compute earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except per share amounts) Basic weighted average shares outstanding 37,508 37,340 37,489 37,322 Dilutive effect of stock options and restricted stock 596 813 640 793 Diluted weighted average shares outstanding 38,104 38,153 38,129 38,115 Basic earnings per share $ 1.79 $ 2.25 $ 3.94 $ 4.25 Diluted earnings per share 1.77 2.20 3.87 4.16 Stock options and restricted stock totaling 28,570 shares and 19,101 shares for the three months ended June 30, 2021 and 2020, respectively, and 44,830 and 41,033 shares for the six months ended June 30 2021, and 2020, respectively, were excluded from the computation of diluted earnings per share because their effect would have been antidilutive. The computation of diluted shares can vary among periods due, in part, to the change in the average price of the Company’s common stock. |
Credit Agreements and Short-ter
Credit Agreements and Short-term Financing | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Credit Agreements and Short-term Financing | 11. Credit Agreements and Short-term Financing Prior Revolving Credit Agreement In October 2015, the Company entered into an amended and restated credit agreement (the “Prior Credit Agreement”) that provided for revolving loans and letters of credit up to an aggregate of $100.0 million. The Prior Credit Agreement matured on November 13, 2020, when the Company entered into a new one-year Revolving Credit Agreement On November 13, 2020, the Company entered into a credit agreement (the “Credit Agreement”) with a syndicate of lenders and JPMorgan Chase Bank, N.A., as administrative agent, that provides aggregate commitments totaling $500.0 million, consisting of a revolving credit facility and a $5.0 million letter of credit sub-limit for standby letters of credit. The Credit Agreement replaced the Prior Credit Agreement and will mature on November 12, 2021, with the Company’s option to request up to two additional 364-day extensions at the discretion of each lender and subject to customary conditions. Subject to satisfaction of certain specified conditions, the Company is permitted to upsize the Credit Agreement by up to $250.0 million in total. Borrowings under the Credit Agreement will bear interest at a rate per annum equal to the base rate or adjusted LIBOR plus an applicable margin that varies with the Company’s consolidated total leverage ratio. The Credit Agreement requires that the Company satisfy certain covenants, which include leverage ratios and minimum earnings before interest, tax, and depreciation and amortization (“EBITDA”) requirements. The Company was in compliance with all applicable covenants at June 30, 2021. The Company incurred no interest expense under the Credit Agreement for the six months ended June 30, 2021. Collateralized Agreement In connection with its self-clearing operations, one of the Company’s U.S. broker-dealer subsidiaries entered into an agreement (the “Collateralized Agreement”) with its settlement bank to provide loans to the subsidiary in amounts up to an aggregate of $200.0 million on an uncommitted basis. Borrowings under the Collateralized Agreement are collateralized by securities pledged by the Company’s broker-dealer subsidiary to the settlement bank, subject to applicable haircuts and concentration limits. Borrowings under the Collateralized Agreement will bear interest at a rate per annum equal to the Federal Funds Rate plus 1.00%. The Company incurred less than $0.1 million of interest expense on borrowings under the Collateralized Agreement during the six months ended June 30, 2021. As of June 30, 2021, the Company had no borrowings outstanding and $200.0 million in available borrowing capacity under the Collateralized Agreement. Short-term Financing Under arrangements with their settlement banks, certain of the Company’s U.S. and U.K. operating subsidiaries may receive overnight financing in the form of bank overdrafts. The Company incurred interest expense on such overnight financing of $0.4 million during the six months ended June 30, 2021. As of June 30, 2021, the Company had $1.0 million of overdrafts payable outstanding which is included within accounts payable, accrued expenses and other liabilities on the Consolidated Statement of Financial Condition. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | 12. Leases The Company has operating leases for corporate offices with initial lease terms ranging from one year to 15 years. Certain leases contain options to extend the initial term at the Company’s discretion. The Company accounts for the option to extend when it is reasonably certain of being exercised. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants. The following table presents the components of lease expense: Three Months Ended June 30, Six Months Ended June 30, Lease cost: Classification 2021 2020 2021 2020 (In thousands) Operating lease cost Occupancy $ 3,346 $ 3,357 $ 6,669 $ 6,806 Operating lease cost for subleased/assigned properties Other, net 544 635 1,041 1,171 Variable lease costs Occupancy 2 7 8 23 Sublease income subleased/assigned properties Other, net (544 ) (635 ) (1,047 ) (1,171 ) Net lease cost $ 3,348 $ 3,364 $ 6,671 $ 6,829 The Company determines whether an arrangement is, or includes, a lease at contract inception. Operating lease right-of-use assets and liabilities are recognized at commencement date and are initially measured based on the present value of lease payments over the defined lease term. As the Company's leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments. The weighted average remaining lease term (in years) and weighted average discount rate are as follows: As of Lease Term and Discount Rate June 30, 2021 December 31, 2020 Weighted average remaining lease term (in years) 11.8 12.3 Weighted average discount rate 5.9 % 5.9 % The following table presents the maturity of lease liabilities as of June 30, 2021: (In thousands) Remainder of 2021 $ 5,956 2022 10,866 2023 10,626 2024 11,160 2025 11,152 2026 and thereafter 79,110 Total lease payments 128,870 Less: interest 37,605 Operating lease liabilities $ 91,265 The Company has entered into agreements that sublease or assign the Company’s lease obligations on two properties to third parties and is contingently liable should the third parties default on future lease obligations through the lease termination dates of February 2022 and May 2022. The aggregate amount of the future lease obligations under these arrangements is $1.2 million as of June 30, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Legal In the normal course of business, the Company and its subsidiaries included in the consolidated financial statements may be involved in various lawsuits, proceedings and regulatory examinations. The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings, if any, utilizing the latest information available. For matters where it is probable that the Company will incur a material loss and the amount can be reasonably estimated, the Company will establish an accrual for the loss. Once established, the accrual will be adjusted to reflect any relevant developments. When a loss contingency is not both probable and estimable, the Company does not establish an accrual. Based on currently available information, the outcome of the Company’s outstanding matters is not expected to have a material adverse impact on the Company’s financial position. It is not presently possible to determine the ultimate exposure to these matters and there is no assurance that the resolution of the outstanding matters will not significantly exceed any reserves accrued by the Company. Other The Company, through certain of its In the normal course of business, the Company enters into contracts that contain a variety of representations, warranties and indemnification provisions. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects the risk of loss to be remote. |
Share Repurchase Program
Share Repurchase Program | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Share Repurchase Program | 14. Share Repurchase Program In January 2019, the Board of Directors authorized a two-year |
Segment and Geographic Informat
Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 15. Segment and Geographic Information The Company operates an electronic platform for the trading of fixed-income securities and provides related data, analytics, compliance tools and post-trade services. The Company considers its operations to constitute a single For the six months ended June 30, 2021 and 2020, the U.K. was the only individual foreign country in which the Company had a subsidiary that accounted for 10% or more of the total revenues or total long-lived assets of the Company. Revenues and long-lived assets are attributed to a geographic area based on the location of the particular subsidiary. Long-lived assets are defined as furniture, equipment, leasehold improvements and capitalized software. Revenues for the three and six months ended June 30, 2021 and 2020 and long-lived assets as of June 30, 2021 and December 31, 2020 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Revenues Americas $ 143,239 $ 158,845 $ 303,358 $ 301,482 Europe 28,317 22,086 57,861 44,505 Asia 4,778 3,864 10,579 7,786 Total $ 176,334 $ 184,795 $ 371,798 $ 353,773 As of June 30, 2021 December 31, 2020 (In thousands) Long-lived assets, as defined Americas $ 74,030 $ 68,707 Europe 19,071 16,491 Asia 7 6 Total $ 93,108 $ 85,204 |
Cash and Cash Equivalents and R
Cash and Cash Equivalents and Restricted Cash | 6 Months Ended |
Jun. 30, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Restricted Cash | 16. Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash and cash equivalents together with restricted or segregated cash as reported within the Consolidated Statements of Financial Condition to the sum of the same such amounts shown in the Consolidated Statements of Cash Flows. Statement of Financial Condition Location June 30, 2021 December 31, 2020 (In thousands) Cash and cash equivalents Cash and cash equivalents $ 413,612 $ 460,858 Cash segregated for regulatory purposes Cash segregated under federal regulations 50,108 50,059 Deposits with clearing organizations and broker-dealers Receivables from broker-dealers, clearing organizations and customers 81,433 97,043 Other deposits Prepaid expenses and other assets 90 90 Total $ 545,243 $ 608,050 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated. These consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The consolidated financial information as of December 31, 2020 has been derived from audited financial statements not included herein. These unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) with respect to Form 10-Q and reflect all adjustments that, in the opinion of management, are normal and recurring, and that are necessary for a fair statement of the results for the interim periods presented. In accordance with such rules and regulations, certain disclosures that are normally included in annual financial statements have been omitted. Interim period operating results may not be indicative of the operating results for a full year. Certain reclassifications have been made to the prior periods’ consolidated financial statements in order to conform to the current period presentation. Such reclassifications are immaterial, individually and in the aggregate, to both current and all previously issued financial statements taken as a whole and have no effect on previously reported net income. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements, Not Yet Adopted In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (the “ASU”), which is designed to ease the potential burden in accounting for the transition away from the London Inter-bank Offered Rate (“LIBOR”). The ASU applies to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued and replaced with alternative reference rates as a result of reference rate reform. The ASU provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The ASU was effective for all entities as of March 12, 2020 and can be adopted from this date through December 31, 2022. The Company does not expect adoption of this ASU to have a material impact on its Consolidated Financial Statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company defines cash equivalents as short-term interest-bearing investments with maturities at the time of purchase of three months or less. |
Investments | Investments The Company determines the appropriate classification of securities at the time of purchase which are recorded in the Consolidated Statements of Financial Condition on the trade date. Securities are classified as available-for-sale or trading. Available-for-sale investments are carried at fair value with the unrealized gains or losses reported in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Trading investments include investment grade corporate debt securities carried at fair value, with realized and unrealized gains or losses included in other, net in the Consolidated Statements of Operations. |
Fair Value Financial Instruments | Fair Value Financial Instruments Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” A three-tiered hierarchy for determining fair value has been established that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as Level 1 (unadjusted quoted prices for identical assets or liabilities in active markets), Level 2 (inputs that are observable in the marketplace other than those inputs classified in Level 1) and Level 3 (inputs that are unobservable in the marketplace). The Company’s financial assets and liabilities measured at fair value on a recurring basis consist of its money market funds, securities available-for-sale, trading securities, foreign currency forward contracts, and contingent consideration payable associated with acquisitions. All other financial instruments are short-term in nature and the carrying amount is reported on the Consolidated Statements of Financial Condition at approximate fair value. |
Receivables from and Payables to Broker - dealers, Clearing Organizations and Customers | Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers Receivables from broker-dealers, clearing organizations and customers include amounts receivable for securities not delivered by the Company to the purchaser by the settlement date (‘‘securities failed-to-deliver’’) and cash deposits held at clearing organizations and clearing brokers to facilitate the settlement and clearance of matched principal transactions. Payables to broker-dealers, clearing organizations and customers include amounts payable for securities not received by the Company from a seller by the settlement date (‘‘securities failed-to-receive’’). Securities failed-to-deliver and securities failed-to-receive for transactions executed between and among institutional investor and broker-dealer clients on a matched principal basis where the Company serves as a counterparty to both the buyer and the seller are recorded on a settlement date basis. The Company presents its securities failed-to-deliver and securities failed-to-receive balances on a net-by-counterparty basis within receivables from and payables to broker-dealers, clearing organizations and customers. The difference between the Company’s trade-date receivables and payables for unsettled matched principal transactions reflects commissions earned and is recorded within accounts receivable, net on a trade-date basis. |
Allowance for Credit Losses | Allowance for Credit Losses All accounts receivable have contractual maturities of less than one year and are derived from trading-related fees and commissions and revenues from products and services. The Company continually monitors collections and payments from its customers and maintains an allowance for doubtful accounts. The allowance for credit losses is based on an estimate of the amount of potential credit losses in existing accounts receivable, as determined from a review of aging schedules, past due balances, historical collection experience and other specific collection issues that have been identified. Account balances are grouped for evaluation based on various risk characteristics, including billing type, legal entity, and geographic region. Additions to the allowance for credit losses are charged to bad debt expense, which is included in general and administrative expense in the Company’s Consolidated Statements of Operations. Balances that are determined to be uncollectable are written off against the allowance for credit losses. |
Depreciation and Amortization | Depreciation and Amortization Fixed assets are carried at cost less accumulated depreciation. The Company uses the straight-line method of depreciation over three to seven years. The Company amortizes leasehold improvements on a straight-line basis over the lesser of the life of the improvement or the remaining term of the lease. |
Software Development Costs | Software Development Costs The Company capitalizes certain costs associated with the development of internal use software, including, among other items, employee compensation and related benefits and third party consulting costs at the point at which the conceptual formulation, design and testing of possible software project alternatives have been completed. Once the product is ready for its intended use, such costs are amortized on a straight-line basis over three years. The Company reviews the amounts capitalized for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. |
Cloud Computing Costs | Cloud Computing Costs The Company capitalizes certain costs associated with cloud computing arrangements, including, among other items, employee compensation and related benefits and third party consulting costs that are part of the application development stage. These costs are setup as a prepaid asset on the Consolidated Statement of Financial Condition and are amortized over the period of the hosting service contract. The Company reviews the amounts capitalized for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. |
Foreign Currency Translation and Forward Contracts | Foreign Currency Translation and Forward Contracts Assets and liabilities denominated in foreign currencies are translated using exchange rates at the end of the period; revenues and expenses are translated at average monthly rates. Gains and losses on foreign currency translation are a component of accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Transaction gains and losses are recorded in other, net in the Consolidated Statements of Operations. The Company enters into foreign currency forward contracts to hedge its net investment in its U.K. subsidiaries. Gains and losses on these transactions are included in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. |
Revenue Recognition | Revenue Recognition The Company’s classification of revenues in the Consolidated Statements of Operations represents revenues from contracts with customers disaggregated by type of revenue. The Company has four revenue streams as described below. Commission Revenue – The Company charges its broker-dealer clients variable transaction fees for trades executed on its platforms and, under certain plans, distribution fees or monthly minimum fees to use the platforms for a particular product area. Variable transaction fees are recognized on a trade date basis, are generally calculated as a percentage of the notional dollar volume of bonds traded on the platforms and vary based on the type, size, yield and maturity of the bond traded, as well as individual client incentives. Bonds that are more actively traded or that have shorter maturities generally generate lower commissions, while bonds that are less actively traded or that have longer maturities generally command higher commissions. Under the Company’s disclosed trading transaction fee plans, variable transaction fees, distribution fees and unused monthly fee commitments are invoiced and recorded on a monthly basis. For Open Trading trades that the Company executes between and among institutional investor and broker-dealer clients on a matched principal basis by serving as counterparty to both the buyer and the seller, the Company earns its commission through the difference in price between the two trades. The commission is collected upon settlement of the trade, which typically occurs within one to two trading days after the trade date. For U.S. Treasury matched principal trades, commissions are invoiced and recorded on a monthly basis. The following table presents commission revenue by fee type: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Commission revenue by fee type Variable transaction fees Disclosed trading $ 84,581 $ 95,634 $ 183,399 $ 179,879 Open Trading - matched principal trading 39,881 47,373 86,201 87,731 U.S. Treasuries - matched principal trading 2,637 3,024 5,897 7,587 Total variable transaction fees 127,099 146,031 275,497 275,197 Distribution fees and unused minimum fees 29,332 26,061 56,772 52,849 Total commissions $ 156,431 $ 172,092 $ 332,269 $ 328,046 Information services – Information services includes data licensed to the Company’s broker-dealer clients, institutional investor clients and data-only subscribers; professional and consulting services; technology software licenses; and maintenance and support services. The nature and timing of each performance obligation may vary as these contracts are either subscription-based services transferred over time, and may be net of volume-based discounts, or one-time services that are transferred at a point in time. Revenues for services transferred over time are recognized ratably over the contract period as the Company’s performance obligation is met whereas revenues for services transferred at a point in time are recognized in the period the services are provided. Customers are generally billed monthly, quarterly, or annually; revenues billed in advance are deferred and recognized ratably over the contract period. The following table presents information services revenue by timing of recognition: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Information services revenue by timing of recognition Services transferred over time $ 9,512 $ 7,819 $ 18,557 $ 15,625 Services transferred at a point in time 332 608 449 1,444 Total information services revenues $ 9,844 $ 8,427 $ 19,006 $ 17,069 Post-trade services – Post-trade services revenue is generated from regulatory transaction reporting, trade publication and trade matching services. Customers are generally billed in the current month or monthly in arrears and revenue is recognized in the period transactions are processed. Revenues billed in advance are deferred and recognized ratably over the contract period. The Company also generates one-time implementation fees for onboarding clients which are invoiced and recognized in the period the implementation is completed. The following table presents post-trade services revenue by timing of recognition: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Post-trade services revenue by timing of recognition Services transferred over time $ 9,848 $ 3,948 $ 20,100 $ 8,098 Services transferred at a point in time — 106 9 109 Total post-trade services revenues $ 9,848 $ 4,054 $ 20,109 $ 8,207 Other revenues – Other revenues primarily includes revenue from telecommunications line charges to broker-dealer clients. Contract liabilities consist of deferred revenues that the Company records when cash payments are received or due in advance of services to be performed. The revenue recognized from contract liabilities and the remaining balance is shown below: December 31, 2020 Payments received in advance of services to be performed Revenue recognized for services performed during the period Foreign Currency Translation June 30, 2021 (In thousands) Information services $ 3,203 $ 5,060 $ (4,967 ) $ — $ 3,296 Post-trade services 1,045 8,395 (8,056 ) 15 1,399 Total deferred revenue $ 4,248 $ 13,455 $ (13,023 ) $ 15 $ 4,695 The majority of the Company’s contracts are short-term in nature with durations of less than one year. For contracts with original durations extending beyond one year, the aggregate amount of the transaction price allocated to remaining performance obligations was $21.3 million as of June 30, 2021. The Company expects to recognize revenue associated with the remaining performance obligations over the next 35 months. |
Stock-Based Compensation | Stock-Based Compensation The Company measures and recognizes compensation expense for all share-based payment awards based on their estimated fair values measured as of the grant date. These costs are recognized as an expense in the Consolidated Statements of Operations over the requisite service period, which is typically the vesting period, with an offsetting increase to additional paid-in capital. Forfeitures are recognized as they occur. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized against deferred tax assets if it is more likely than not that such assets will not be realized in future years. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statements of Operations. All tax effects related to share-based payments are recorded in the provision for income taxes in the periods during which the awards are exercised or vest. |
Business Combinations, Goodwill and Intangible Assets | Business Combinations, Goodwill and Intangible Assets Business combinations are accounted for under the purchase method of accounting. The total cost of an acquisition is allocated to the underlying net assets based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of certain assets acquired and liabilities assumed requires judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash flows, discount rates, growth rates and asset lives. The Company operates as a single reporting unit. Following an acquisition, goodwill no longer retains its identification with a particular acquisition, but instead becomes identifiable with the entire reporting unit. As a result, all of the fair value of the Company is available to support the value of goodwill. An impairment review of goodwill is performed on an annual basis, at year-end, or more frequently if circumstances change. Intangible assets with definite lives, including purchased technologies, customer relationships and other intangible assets, are amortized over their estimated useful lives which range from one to 15 years using either a straight-line or accelerated amortization method based on the pattern of economic benefit the Company expects to realize from such assets. Intangible assets are assessed for impairment when events or circumstances indicate the existence of a possible impairment. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing the net income attributable to common stock by the weighted-average number of shares of common stock outstanding during the period. For purposes of computing diluted earnings per share, the weighted-average shares outstanding of common stock reflects the dilutive effect that could occur if convertible securities or other contracts to issue common stock were converted into or exercised for common stock. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Commission Revenue by Fee Type | The following table presents commission revenue by fee type: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Commission revenue by fee type Variable transaction fees Disclosed trading $ 84,581 $ 95,634 $ 183,399 $ 179,879 Open Trading - matched principal trading 39,881 47,373 86,201 87,731 U.S. Treasuries - matched principal trading 2,637 3,024 5,897 7,587 Total variable transaction fees 127,099 146,031 275,497 275,197 Distribution fees and unused minimum fees 29,332 26,061 56,772 52,849 Total commissions $ 156,431 $ 172,092 $ 332,269 $ 328,046 |
Summary of Information Services Revenue by Timing of Recognition | The following table presents information services revenue by timing of recognition: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Information services revenue by timing of recognition Services transferred over time $ 9,512 $ 7,819 $ 18,557 $ 15,625 Services transferred at a point in time 332 608 449 1,444 Total information services revenues $ 9,844 $ 8,427 $ 19,006 $ 17,069 |
Summary of Post-Trade Services Revenue by Timing of Recognition | The following table presents post-trade services revenue by timing of recognition: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Post-trade services revenue by timing of recognition Services transferred over time $ 9,848 $ 3,948 $ 20,100 $ 8,098 Services transferred at a point in time — 106 9 109 Total post-trade services revenues $ 9,848 $ 4,054 $ 20,109 $ 8,207 |
Summary of Revenue Recognized from Contract Liabilities and Remaining Balance | The revenue recognized from contract liabilities and the remaining balance is shown below: December 31, 2020 Payments received in advance of services to be performed Revenue recognized for services performed during the period Foreign Currency Translation June 30, 2021 (In thousands) Information services $ 3,203 $ 5,060 $ (4,967 ) $ — $ 3,296 Post-trade services 1,045 8,395 (8,056 ) 15 1,399 Total deferred revenue $ 4,248 $ 13,455 $ (13,023 ) $ 15 $ 4,695 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Valuation of Company's Assets and Liabilities Measured at Fair Value | The following table summarizes the valuation of the Company’s assets and liabilities measured at fair value as categorized based on the hierarchy described in Note 2. Level 1 Level 2 Level 3 Total (In thousands) As of June 30, 2021 Assets Money market funds $ 19,173 $ — $ — $ 19,173 Trading securities U.S. Treasuries — 24,990 — 24,990 Mutual funds held in rabbi trust — 10,848 — 10,848 Foreign currency forward position — 1,595 — 1,595 Total assets $ 19,173 $ 37,433 $ — $ 56,606 Liabilities Contingent consideration payable $ — $ — $ 36,992 $ 36,992 As of December 31, 2020 Assets Money market funds $ 20,856 $ — $ — $ 20,856 Trading securities Corporate debt — 19,222 — 19,222 Mutual funds held in rabbi trust — 8,889 — 8,889 Total assets $ 20,856 $ 28,111 $ — $ 48,967 Liabilities Contingent consideration payable $ — $ — $ 15,026 $ 15,026 Foreign currency forward position — 805 — 805 Total liabilities $ — $ 805 $ 15,026 $ 15,831 |
Carrying Value of Financial Asset and Liability Not Measured at Fair Value | The table below presents the carrying value, fair value and fair value hierarchy category of the Company's financial assets and liabilities that are not measured at fair value on the Consolidated Statement of Financial Condition. The carrying values of the Company's financial assets and liabilities not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximate fair value due to the short-term nature of the underlying assets and liabilities. Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) As of June 30, 2021 Financial assets not measured at fair value: Cash and cash equivalents $ 413,612 $ 413,612 $ 413,612 $ — $ — $ 413,612 Cash segregated under federal regulations 50,108 50,108 50,108 — — 50,108 Accounts receivable, net of allowance 87,125 87,125 — 87,125 — 87,125 Receivables from broker-dealers, clearing organizations and customers 475,739 475,739 81,433 394,306 — 475,739 Total $ 1,026,584 $ 1,026,584 $ 545,153 $ 481,431 $ — $ 1,026,584 Financial liabilities not measured at fair value: Payables to broker-dealers, clearing organizations and customers $ 278,303 $ 278,303 $ — $ 278,303 $ — $ 278,303 As of December 31, 2020 Financial assets not measured at fair value: Cash and cash equivalents $ 460,858 $ 460,858 $ 460,858 $ — $ — $ 460,858 Cash segregated under federal regulations 50,059 50,059 50,059 — — 50,059 Accounts receivable, net of allowance 79,577 79,577 — 79,577 — 79,577 Receivables from broker-dealers, clearing organizations and customers 279,915 279,915 97,043 182,872 — 279,915 Total $ 870,409 $ 870,409 $ 607,960 $ 262,449 $ — $ 870,409 Financial liabilities not measured at fair value: Payables to broker-dealers, clearing organizations and customers $ 133,326 $ 133,326 $ — $ 133,326 $ — $ 133,326 |
Summary of Foreign Currency Forward Contracts | The following table summarizes the Company’s foreign currency forward position: As of June 30, 2021 December 31, 2020 (In thousands) Notional value $ 183,907 $ 157,057 Fair value of notional 182,312 157,862 Fair value of the asset (liability) $ 1,595 $ (805 ) |
Summary of Company's Investments | The following table summarizes the Company’s investments: Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) As of June 30, 2021 Trading securities U.S. Treasuries $ 24,989 $ 1 $ — $ 24,990 Mutual funds held in rabbi trust 9,941 907 — 10,848 Total investments $ 34,930 $ 908 $ — $ 35,838 As of December 31, 2020 Trading securities Corporate debt $ 19,081 $ 141 $ — $ 19,222 Mutual funds held in rabbi trust 7,680 1,209 — 8,889 Total investments $ 26,761 $ 1,350 $ — $ 28,111 |
Summary of Fair Value of Investments Based upon Contractual Maturities | The following table summarizes the fair value of the investments based upon the contractual maturities: As of June 30, 2021 December 31, 2020 (In thousands) Less than one year $ 10,848 $ 18,290 Due in 1 - 5 years 24,990 9,821 Total $ 35,838 $ 28,111 |
Receivables from and Payables_2
Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Due To And From Broker Dealers And Clearing Organizations [Abstract] | |
Schedule of Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers | Receivables from and payables to broker-dealers, clearing organizations and customers consisted of the following: June 30, 2021 December 31, 2020 Receivables from broker-dealers, clearing organizations and customers: (In thousands) Securities failed-to-deliver - broker-dealers $ 131,125 $ 93,294 Securities failed-to-deliver - customers 259,790 87,685 Deposits with clearing organizations and broker-dealers 81,433 97,043 Other 3,391 1,893 Total $ 475,739 $ 279,915 Payables to broker-dealers, clearing organizations and customers: Securities failed-to-receive - broker-dealers 202,794 70,917 Securities failed-to-receive - customers 72,069 60,784 Other 3,440 1,625 Total $ 278,303 $ 133,326 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Company's Intangible Assets | Intangible assets that are subject to amortization, including the related accumulated amortization, are comprised of the following: June 30, 2021 December 31, 2020 Cost Accumulated amortization Net carrying amount Cost Accumulated amortization Net carrying amount (In thousands) Customer relationships $ 128,564 $ (13,153 ) $ 115,411 $ 102,696 $ (7,369 ) $ 95,327 Technology and other intangibles 11,430 (6,852 ) 4,578 6,550 (6,523 ) 27 Total $ 139,994 $ (20,005 ) $ 119,989 $ 109,246 $ (13,892 ) $ 95,354 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Current: (In thousands) Federal $ 5,852 $ 10,887 $ 18,375 $ 18,653 State and local 6,283 3,917 9,694 6,827 Foreign 5,621 3,741 10,440 7,188 Total current provision 17,756 18,545 38,509 32,668 Deferred: Federal 1,275 1,475 1,877 3,380 State and local 302 266 403 618 Foreign (568 ) 263 (680 ) 769 Total deferred provision 1,009 2,004 1,600 4,767 Provision for income taxes $ 18,765 $ 20,549 $ 40,109 $ 37,435 Effective tax rate 21.8 % 19.7 % 21.4 % 19.1 % |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense | Total stock-based compensation expense was as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Employees $ 5,920 $ 5,512 $ 13,023 $ 11,911 Non-employee directors 214 279 535 557 Total stock-based compensation $ 6,134 $ 5,791 $ 13,558 $ 12,468 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Weighted Average Shares Outstanding Used to Compute Earnings Per Share | The following table sets forth basic and diluted weighted average shares outstanding used to compute earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except per share amounts) Basic weighted average shares outstanding 37,508 37,340 37,489 37,322 Dilutive effect of stock options and restricted stock 596 813 640 793 Diluted weighted average shares outstanding 38,104 38,153 38,129 38,115 Basic earnings per share $ 1.79 $ 2.25 $ 3.94 $ 4.25 Diluted earnings per share 1.77 2.20 3.87 4.16 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The following table presents the components of lease expense: Three Months Ended June 30, Six Months Ended June 30, Lease cost: Classification 2021 2020 2021 2020 (In thousands) Operating lease cost Occupancy $ 3,346 $ 3,357 $ 6,669 $ 6,806 Operating lease cost for subleased/assigned properties Other, net 544 635 1,041 1,171 Variable lease costs Occupancy 2 7 8 23 Sublease income subleased/assigned properties Other, net (544 ) (635 ) (1,047 ) (1,171 ) Net lease cost $ 3,348 $ 3,364 $ 6,671 $ 6,829 |
Summary of Weighted Average Remaining Lease Term and Discount Rate | The weighted average remaining lease term (in years) and weighted average discount rate are as follows: As of Lease Term and Discount Rate June 30, 2021 December 31, 2020 Weighted average remaining lease term (in years) 11.8 12.3 Weighted average discount rate 5.9 % 5.9 % |
Schedule of Maturity of Lease Liabilities | The following table presents the maturity of lease liabilities as of June 30, 2021: (In thousands) Remainder of 2021 $ 5,956 2022 10,866 2023 10,626 2024 11,160 2025 11,152 2026 and thereafter 79,110 Total lease payments 128,870 Less: interest 37,605 Operating lease liabilities $ 91,265 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of Revenue and Long-lived Assets | Revenues for the three and six months ended June 30, 2021 and 2020 and long-lived assets as of June 30, 2021 and December 31, 2020 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Revenues Americas $ 143,239 $ 158,845 $ 303,358 $ 301,482 Europe 28,317 22,086 57,861 44,505 Asia 4,778 3,864 10,579 7,786 Total $ 176,334 $ 184,795 $ 371,798 $ 353,773 As of June 30, 2021 December 31, 2020 (In thousands) Long-lived assets, as defined Americas $ 74,030 $ 68,707 Europe 19,071 16,491 Asia 7 6 Total $ 93,108 $ 85,204 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Summary of Reconciliation of Cash and Cash Equivalents with Restricted or Segregated Cash | The following table provides a reconciliation of cash and cash equivalents together with restricted or segregated cash as reported within the Consolidated Statements of Financial Condition to the sum of the same such amounts shown in the Consolidated Statements of Cash Flows. Statement of Financial Condition Location June 30, 2021 December 31, 2020 (In thousands) Cash and cash equivalents Cash and cash equivalents $ 413,612 $ 460,858 Cash segregated for regulatory purposes Cash segregated under federal regulations 50,108 50,059 Deposits with clearing organizations and broker-dealers Receivables from broker-dealers, clearing organizations and customers 81,433 97,043 Other deposits Prepaid expenses and other assets 90 90 Total $ 545,243 $ 608,050 |
Organization and Principal Bu_2
Organization and Principal Business Activity - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021Institutional_Investor_and_Broker-dealer_Firm | |
Accounting Policies [Line Items] | |
Date of incorporation | Apr. 11, 2000 |
Minimum [Member] | |
Accounting Policies [Line Items] | |
Number of institutional investor and broker-dealer firms | 1,800 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021Revenue | |
Significant Accounting Policies [Line Items] | |
Maximum maturity period for classification of investments as cash equivalents | 3 months |
Number of revenue streams | 4 |
Description of commission revenue | For Open Trading trades that the Company executes between and among institutional investor and broker-dealer clients on a matched principal basis by serving as counterparty to both the buyer and the seller, the Company earns its commission through the difference in price between the two trades. |
Settlement days of bond transaction | within one to two trading days |
Maximum [Member] | |
Significant Accounting Policies [Line Items] | |
Contractual maturities accounts receivable | 1 year |
Estimated useful life of fixed assets | 7 years |
Maximum [Member] | Business Combinations [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated life of intangible assets | 15 years |
Minimum [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated useful life of fixed assets | 3 years |
Minimum [Member] | Business Combinations [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated life of intangible assets | 1 year |
Minimum [Member] | Internally Developed Software [Member] | |
Significant Accounting Policies [Line Items] | |
Estimated life of intangible assets | 3 years |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Commission Revenue by Fee Type (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Commission revenue by fee type | ||||
Revenues | $ 176,334 | $ 184,795 | $ 371,798 | $ 353,773 |
Commissions [Member] | ||||
Commission revenue by fee type | ||||
Disclosed trading | 84,581 | 95,634 | 183,399 | 179,879 |
Matched principal trading | 39,881 | 47,373 | 86,201 | 87,731 |
Total variable transaction fees | 127,099 | 146,031 | 275,497 | 275,197 |
Distribution fees and unused minimum fees | 29,332 | 26,061 | 56,772 | 52,849 |
Revenues | 156,431 | 172,092 | 332,269 | 328,046 |
Commissions [Member] | U.S. Treasuries [Member] | ||||
Commission revenue by fee type | ||||
Matched principal trading | $ 2,637 | $ 3,024 | $ 5,897 | $ 7,587 |
Significant Accounting Polici_6
Significant Accounting Policies - Summary of Information Services Revenue by Timing of Recognition (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Significant Accounting Policies [Line Items] | ||||
Revenues | $ 176,334 | $ 184,795 | $ 371,798 | $ 353,773 |
Information Services [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Revenues | 9,844 | 8,427 | 19,006 | 17,069 |
Information Services [Member] | Transferred over Time [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Revenues | 9,512 | 7,819 | 18,557 | 15,625 |
Information Services [Member] | Transferred at a Point in Time [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Revenues | $ 332 | $ 608 | $ 449 | $ 1,444 |
Significant Accounting Polici_7
Significant Accounting Policies - Summary of Post-Trade Services Revenue by Timing of Recognition (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Significant Accounting Policies [Line Items] | ||||
Revenues | $ 176,334 | $ 184,795 | $ 371,798 | $ 353,773 |
Post-trade Services [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Revenues | 9,848 | 4,054 | 20,109 | 8,207 |
Post-trade Services [Member] | Transferred over Time [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Revenues | $ 9,848 | 3,948 | 20,100 | 8,098 |
Post-trade Services [Member] | Transferred at a Point in Time [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Revenues | $ 106 | $ 9 | $ 109 |
Significant Accounting Polici_8
Significant Accounting Policies - Summary of Revenue Recognized from Contract Liabilities and Remaining Balance (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Significant Accounting Policies [Line Items] | |
Deferred revenues, beginning balance | $ 4,248 |
Payments received in advance of services to be performed | 13,455 |
Revenue recognized for services performed during the period | (13,023) |
Foreign Currency Translation | 15 |
Deferred revenues, ending balance | 4,695 |
Information Services [Member] | |
Significant Accounting Policies [Line Items] | |
Deferred revenues, beginning balance | 3,203 |
Payments received in advance of services to be performed | 5,060 |
Revenue recognized for services performed during the period | (4,967) |
Deferred revenues, ending balance | 3,296 |
Post-trade Services [Member] | |
Significant Accounting Policies [Line Items] | |
Deferred revenues, beginning balance | 1,045 |
Payments received in advance of services to be performed | 8,395 |
Revenue recognized for services performed during the period | (8,056) |
Foreign Currency Translation | 15 |
Deferred revenues, ending balance | $ 1,399 |
Significant Accounting Polici_9
Significant Accounting Policies - Additional Information (Detail 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-04-01 $ in Millions | Jun. 30, 2021USD ($) |
Significant Accounting Policies [Line Items] | |
Aggregate amount of transaction price allocated to remaining performance obligations | $ 21.3 |
Expected time to recognize revenue for remaining performance obligation | 35 months |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements - Additional Information (Detail) $ in Millions | Jun. 30, 2021USD ($) |
Brokers And Dealers [Line Items] | |
Securities reserve deposit | $ 50.1 |
U.S. Subsidiaries | |
Brokers And Dealers [Line Items] | |
Aggregate net capital and financial resources in excess of required level | 551 |
Aggregate net capital and financial resources, minimum capital requirement | 22.6 |
U.S. Broker-Dealer Subsidiaries | |
Brokers And Dealers [Line Items] | |
Aggregate net capital and financial resources in excess of required level | 343.7 |
Aggregate net capital and financial resources, minimum capital requirement | $ 3.6 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Company's Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Money market funds | $ 19,173 | $ 20,856 |
Total assets | 56,606 | 48,967 |
Liabilities | ||
Contingent consideration payable | 36,992 | 15,026 |
Total liabilities | 15,831 | |
U.S. Treasuries [Member] | ||
Assets | ||
Trading securities | 24,990 | |
Corporate Debt [Member] | ||
Assets | ||
Trading securities | 19,222 | |
Mutual Funds Held In Rabbi Trust [Member] | ||
Assets | ||
Trading securities | 10,848 | 8,889 |
Foreign Currency Forward Position [Member] | ||
Assets | ||
Foreign currency forward position | 1,595 | |
Liabilities | ||
Foreign currency forward position | 805 | |
Level 1 [Member] | ||
Assets | ||
Money market funds | 19,173 | 20,856 |
Total assets | 19,173 | 20,856 |
Level 2 [Member] | ||
Assets | ||
Total assets | 37,433 | 28,111 |
Liabilities | ||
Total liabilities | 805 | |
Level 2 [Member] | U.S. Treasuries [Member] | ||
Assets | ||
Trading securities | 24,990 | |
Level 2 [Member] | Corporate Debt [Member] | ||
Assets | ||
Trading securities | 19,222 | |
Level 2 [Member] | Mutual Funds Held In Rabbi Trust [Member] | ||
Assets | ||
Trading securities | 10,848 | 8,889 |
Level 2 [Member] | Foreign Currency Forward Position [Member] | ||
Assets | ||
Foreign currency forward position | 1,595 | |
Liabilities | ||
Foreign currency forward position | 805 | |
Level 3 [Member] | ||
Liabilities | ||
Contingent consideration payable | $ 36,992 | 15,026 |
Total liabilities | $ 15,026 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Contingent consideration payable | $ 22.5 | |
Hedge derivative expiration period | 1 month | |
Proceeds from the sales and maturities of securities available-for-sale | $ 19.4 | $ 144.4 |
Minimum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Business combination, contingent consideration payment period | 18 months | |
Maximum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Business combination, contingent consideration payment period | 24 months |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value of Financial Asset and Liability Not Measured at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | $ 56,606 | $ 48,967 |
Level 1 [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 19,173 | 20,856 |
Level 2 [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 37,433 | 28,111 |
Financial Assets and Liabilities not Measured [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 1,026,584 | 870,409 |
Financial Assets and Liabilities not Measured [Member] | Payables to Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial liabilities not measured at fair value: | ||
Financial liabilities not measured at fair value | 278,303 | 133,326 |
Financial Assets and Liabilities not Measured [Member] | Cash and Cash Equivalents [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 413,612 | 460,858 |
Financial Assets and Liabilities not Measured [Member] | Cash Segregated under Federal Regulations [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 50,108 | 50,059 |
Financial Assets and Liabilities not Measured [Member] | Accounts Receivable, Net of Allowance [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 87,125 | 79,577 |
Financial Assets and Liabilities not Measured [Member] | Receivables from Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 475,739 | 279,915 |
Financial Assets and Liabilities not Measured [Member] | Level 1 [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 545,153 | 607,960 |
Financial Assets and Liabilities not Measured [Member] | Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 413,612 | 460,858 |
Financial Assets and Liabilities not Measured [Member] | Level 1 [Member] | Cash Segregated under Federal Regulations [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 50,108 | 50,059 |
Financial Assets and Liabilities not Measured [Member] | Level 1 [Member] | Receivables from Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 81,433 | 97,043 |
Financial Assets and Liabilities not Measured [Member] | Level 2 [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 481,431 | 262,449 |
Financial Assets and Liabilities not Measured [Member] | Level 2 [Member] | Payables to Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial liabilities not measured at fair value: | ||
Financial liabilities not measured at fair value | 278,303 | 133,326 |
Financial Assets and Liabilities not Measured [Member] | Level 2 [Member] | Accounts Receivable, Net of Allowance [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 87,125 | 79,577 |
Financial Assets and Liabilities not Measured [Member] | Level 2 [Member] | Receivables from Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 394,306 | 182,872 |
Financial Assets and Liabilities not Measured [Member] | Carrying Value [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 1,026,584 | 870,409 |
Financial Assets and Liabilities not Measured [Member] | Carrying Value [Member] | Payables to Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial liabilities not measured at fair value: | ||
Financial liabilities not measured at fair value | 278,303 | 133,326 |
Financial Assets and Liabilities not Measured [Member] | Carrying Value [Member] | Cash and Cash Equivalents [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 413,612 | 460,858 |
Financial Assets and Liabilities not Measured [Member] | Carrying Value [Member] | Cash Segregated under Federal Regulations [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 50,108 | 50,059 |
Financial Assets and Liabilities not Measured [Member] | Carrying Value [Member] | Accounts Receivable, Net of Allowance [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 87,125 | 79,577 |
Financial Assets and Liabilities not Measured [Member] | Carrying Value [Member] | Receivables from Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 475,739 | 279,915 |
Financial Assets and Liabilities not Measured [Member] | Fair Value [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 1,026,584 | 870,409 |
Financial Assets and Liabilities not Measured [Member] | Fair Value [Member] | Payables to Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial liabilities not measured at fair value: | ||
Financial liabilities not measured at fair value | 278,303 | 133,326 |
Financial Assets and Liabilities not Measured [Member] | Fair Value [Member] | Cash and Cash Equivalents [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 413,612 | 460,858 |
Financial Assets and Liabilities not Measured [Member] | Fair Value [Member] | Cash Segregated under Federal Regulations [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 50,108 | 50,059 |
Financial Assets and Liabilities not Measured [Member] | Fair Value [Member] | Accounts Receivable, Net of Allowance [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 87,125 | 79,577 |
Financial Assets and Liabilities not Measured [Member] | Fair Value [Member] | Receivables from Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | $ 475,739 | $ 279,915 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Foreign Currency Forward Contracts (Detail) - Foreign Currency Forward Position [Member] - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivatives Fair Value [Line Items] | ||
Notional value | $ 183,907 | $ 157,057 |
Fair value of notional | 182,312 | 157,862 |
Fair value of the asset (liability) | $ 1,595 | $ (805) |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Company's Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Investments, Amortized cost | $ 34,930 | $ 26,761 |
Investments, Gross unrealized gains | 908 | 1,350 |
Investments, Fair value | 35,838 | 28,111 |
U.S. Treasuries [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Trading securities, Amortized cost | 24,989 | |
Trading securities, Gross unrealized gains | 1 | |
Trading securities, Fair value | 24,990 | |
Corporate Debt [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Trading securities, Amortized cost | 19,081 | |
Trading securities, Gross unrealized gains | 141 | |
Trading securities, Fair value | 19,222 | |
Mutual Funds Held In Rabbi Trust [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Trading securities, Amortized cost | 9,941 | 7,680 |
Trading securities, Gross unrealized gains | 907 | 1,209 |
Trading securities, Fair value | $ 10,848 | $ 8,889 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Fair Value of Investments Based upon Contractual Maturities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Less than one year | $ 10,848 | $ 18,290 |
Due in 1 - 5 years | 24,990 | 9,821 |
Total | $ 35,838 | $ 28,111 |
Receivables from and Payables_3
Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers - Schedule of Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Receivables from broker-dealers, clearing organizations and customers: | ||
Securities failed-to-deliver - broker-dealers | $ 131,125 | $ 93,294 |
Securities failed-to-deliver - customers | 259,790 | 87,685 |
Deposits with clearing organizations and broker-dealers | 81,433 | 97,043 |
Other | 3,391 | 1,893 |
Total | 475,739 | 279,915 |
Payables to broker-dealers, clearing organizations and customers: | ||
Securities failed-to-receive - broker-dealers | 202,794 | 70,917 |
Securities failed-to-receive - customers | 72,069 | 60,784 |
Other | 3,440 | 1,625 |
Total | $ 278,303 | $ 133,326 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 09, 2021 | Nov. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||
Contingent consideration payable | $ 22,500 | |||
Goodwill | $ 154,789 | $ 147,388 | ||
Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Business combination, contingent consideration payment period | 24 months | |||
Minimum [Member] | ||||
Business Acquisition [Line Items] | ||||
Business combination, contingent consideration payment period | 18 months | |||
MuniBrokers LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 17,100 | |||
Business combination, contingent consideration payment period | 2 years | |||
Amortizable intangible assets | $ 32,000 | |||
Goodwill | 7,400 | |||
MuniBrokers LLC [Member] | Accounts Payable, Accrued Expenses and Other Liabilities [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | 17,100 | |||
Contingent consideration payable | 22,500 | |||
Accounting purchase price | 39,600 | |||
MuniBrokers LLC [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration payable | $ 25,000 | |||
MuniBrokers LLC [Member] | Maximum [Member] | Customer Relationships and Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful lives | 15 years | |||
MuniBrokers LLC [Member] | Minimum [Member] | Customer Relationships and Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Useful lives | 1 year | |||
Regulatory Services GmbH of Deutsche Borse Group [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 22,500 | |||
Business combination, contingent consideration payment period | 18 months | |||
Amortizable intangible assets | $ 37,400 | |||
Regulatory Services GmbH of Deutsche Borse Group [Member] | Accounts Payable, Accrued Expenses and Other Liabilities [Member] | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration payable | 14,700 | |||
Regulatory Services GmbH of Deutsche Borse Group [Member] | Maximum [Member] | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration payable | $ 24,600 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Goodwill [Line Items] | |||
Amortization expense associated with identifiable intangible assets | $ 6.1 | $ 1.3 | |
Estimated total amortization expense on intangible assets 2021 | 13 | ||
Estimated total amortization expense on intangible assets 2022 | 16.3 | ||
Estimated total amortization expense on intangible assets 2023 | 17.2 | ||
Estimated total amortization expense on intangible assets 2024 | 14.9 | ||
Estimated total amortization expense on intangible assets 2025 | 12 | ||
Indefinite-lived Intangible Assets [Member] | |||
Goodwill [Line Items] | |||
Goodwill and intangible assets with indefinite lives | $ 154.8 | $ 147.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 139,994 | $ 109,246 |
Accumulated amortization | (20,005) | (13,892) |
Net carrying amount | 119,989 | 95,354 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 128,564 | 102,696 |
Accumulated amortization | (13,153) | (7,369) |
Net carrying amount | 115,411 | 95,327 |
Technology and Other Intangibles [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 11,430 | 6,550 |
Accumulated amortization | (6,852) | (6,523) |
Net carrying amount | $ 4,578 | $ 27 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Current: | ||||
Federal | $ 5,852 | $ 10,887 | $ 18,375 | $ 18,653 |
State and local | 6,283 | 3,917 | 9,694 | 6,827 |
Foreign | 5,621 | 3,741 | 10,440 | 7,188 |
Total current provision | 17,756 | 18,545 | 38,509 | 32,668 |
Deferred: | ||||
Federal | 1,275 | 1,475 | 1,877 | 3,380 |
State and local | 302 | 266 | 403 | 618 |
Foreign | (568) | 263 | (680) | 769 |
Total deferred provision | 1,009 | 2,004 | 1,600 | 4,767 |
Provision for income taxes | $ 18,765 | $ 20,549 | $ 40,109 | $ 37,435 |
Effective tax rate | 21.80% | 19.70% | 21.40% | 19.10% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule Of Pre Tax Income [Line Items] | ||||
Excess tax benefits on share based payments | $ 5.6 | $ 5.7 | $ 9.7 | $ 12 |
New York State [Member] | Earliest Tax Year [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Income tax year under examination | 2010 | |||
New York State [Member] | Latest Tax Year [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Income tax year under examination | 2017 | |||
New York City [Member] | Earliest Tax Year [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Income tax year under examination | 2016 | |||
New York City [Member] | Latest Tax Year [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Income tax year under examination | 2018 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 6,134 | $ 5,791 | $ 13,558 | $ 12,468 |
Employees [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | 5,920 | 5,512 | 13,023 | 11,911 |
Non-Employee Directors [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 214 | $ 279 | $ 535 | $ 557 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Additional Information (Detail) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unrecognized compensation costs related to non-vested | $ | $ 46.7 |
Weighted-average period over which cost is expected to be recognized | 2 years |
Employees [Member] | Restricted Stock [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of non-option equity instruments granted during the period | shares | 37,703 |
Weighted-average grant date fair value per share | $ / shares | $ 527.74 |
Employees [Member] | Performance Based Share [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of non-option equity instruments granted during the period | shares | 12,185 |
Number of stock option equity instruments granted during the period | shares | 15,982 |
Weighted-average fair value each option granted | $ / shares | $ 138.51 |
Weighted-average grant date fair value per share | $ / shares | $ 523 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Weighted Average Shares Outstanding Used to Compute Earnings Per Share (Detail) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share Basic And Diluted [Abstract] | ||||
Basic weighted average shares outstanding | 37,508 | 37,340 | 37,489 | 37,322 |
Dilutive effect of stock options and restricted stock | 596 | 813 | 640 | 793 |
Diluted weighted average shares outstanding | 38,104 | 38,153 | 38,129 | 38,115 |
Basic earnings per share | $ 1.79 | $ 2.25 | $ 3.94 | $ 4.25 |
Diluted earnings per share | $ 1.77 | $ 2.20 | $ 3.87 | $ 4.16 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Options and Restricted Stock [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Stock options and restricted stock excluded from the computation of diluted earnings per share | 28,570 | 19,101 | 44,830 | 41,033 |
Credit Agreements and Short-t_2
Credit Agreements and Short-term Financing - Additional Information (Detail) | Nov. 13, 2020USD ($)Extension_Option | Oct. 31, 2015USD ($) | Jun. 30, 2021USD ($) |
U.S. and U.K. [Member] | Subsidiaries [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest expense on short-term debt | $ 400,000 | ||
Accounts Payable, Accrued Expenses and Other Liabilities [Member] | U.S. and U.K. [Member] | Subsidiaries [Member] | |||
Line Of Credit Facility [Line Items] | |||
Outstanding overdrafts payable | 1,000,000 | ||
Collateralized Agreement [Member] | |||
Line Of Credit Facility [Line Items] | |||
Maximum available borrowings to subsidiary under agreement | 200,000,000 | ||
Outstanding borrowings under agreement | 0 | ||
Unused borrowing capacity, amount under agreement | 200,000,000 | ||
Collateralized Agreement [Member] | Maximum [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest expense on borrowings | $ 100,000 | ||
Collateralized Agreement [Member] | Base Rate [Member] | |||
Line Of Credit Facility [Line Items] | |||
Interest rate, stated percentage | 1.00% | ||
Prior Credit Agreement [Member] | |||
Line Of Credit Facility [Line Items] | |||
Revolving loans and letters of credit | $ 100,000,000 | ||
Expiration period of credit agreement | Nov. 13, 2020 | ||
Period of credit agreement | 1 year | ||
Revolving Credit Facility [Member] | |||
Line Of Credit Facility [Line Items] | |||
Revolving loans and letters of credit | $ 500,000,000 | ||
Expiration period of credit agreement | Nov. 12, 2021 | ||
Period of credit agreement | 364 days | ||
Number of additional option to extend maturity date | Extension_Option | 2 | ||
Letter of credit outstanding | $ 1,000,000 | ||
Amount available under credit agreement | 499,000,000 | ||
Additional borrowings under credit agreement | 250,000,000 | ||
Interest expense on borrowings | $ 0 | ||
Standby Letters of Credit [Member] | |||
Line Of Credit Facility [Line Items] | |||
Sub-limit for letter of credit | $ 5,000,000 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($)Agreement | |
Lessee Lease Description [Line Items] | |
Operating lease, option to extend | Certain leases contain options to extend the initial term at the Company’s discretion |
Operating lease, existence of option to extend [true false] | true |
Number of sublease or lease agreements assigned to third parties | Agreement | 2 |
Future lease obligation under sublease arrangements | $ | $ 1.2 |
Property One [Member] | |
Lessee Lease Description [Line Items] | |
Lease termination dates | 2022-02 |
Property Two [Member] | |
Lessee Lease Description [Line Items] | |
Lease termination dates | 2022-05 |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Term of lease contract | 1 year |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Term of lease contract | 15 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lease Cost [Line Items] | ||||
Net lease cost | $ 3,348 | $ 3,364 | $ 6,671 | $ 6,829 |
Other, net [Member] | ||||
Lease Cost [Line Items] | ||||
Operating lease cost for subleased/assigned properties | 544 | 635 | 1,041 | 1,171 |
Sublease income subleased/assigned properties | (544) | (635) | (1,047) | (1,171) |
Occupancy [Member] | ||||
Lease Cost [Line Items] | ||||
Operating lease cost | 3,346 | 3,357 | 6,669 | 6,806 |
Variable lease costs | $ 2 | $ 7 | $ 8 | $ 23 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Discount Rate (Details) | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 11 years 9 months 18 days | 12 years 3 months 18 days |
Weighted average discount rate | 5.90% | 5.90% |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Remainder of 2021 | $ 5,956 | |
2022 | 10,866 | |
2023 | 10,626 | |
2024 | 11,160 | |
2025 | 11,152 | |
2026 and thereafter | 79,110 | |
Total lease payments | 128,870 | |
Less: interest | 37,605 | |
Operating lease liabilities | $ 91,265 | $ 93,612 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Settlement days of bond transaction | within one to two trading days |
Share Repurchase Program - Addi
Share Repurchase Program - Additional Information (Detail) - Share Repurchase Program [Member] - USD ($) | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2019 | Jun. 30, 2021 | |
Equity Class Of Treasury Stock [Line Items] | |||
Total shares repurchased | 29,751 | ||
Cost of common stock shares repurchased | $ 14,000,000 | ||
Shares repurchase program period | 2 years | ||
Shares repurchase program authorized | $ 100,000,000 | $ 100,000,000 | |
Commencement date | 2019-04 | ||
Share repurchase program, expiration date | Mar. 31, 2021 | ||
Share repurchase program, commencement date | Apr. 1, 2021 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) - Segment | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Number of operating segment | 1 | |
Geographic Concentration Risk [Member] | Total Revenue and Long-lived Assets [Member] | United Kingdom [Member] | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Concentration Risk, Percentage | 10.00% | 10.00% |
Segment and Geographic Inform_4
Segment and Geographic Information - Summary of Revenue and Long-lived Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 176,334 | $ 184,795 | $ 371,798 | $ 353,773 | |
Long-lived assets | 93,108 | 93,108 | $ 85,204 | ||
Americas [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 143,239 | 158,845 | 303,358 | 301,482 | |
Long-lived assets | 74,030 | 74,030 | 68,707 | ||
Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 28,317 | 22,086 | 57,861 | 44,505 | |
Long-lived assets | 19,071 | 19,071 | 16,491 | ||
Asia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 4,778 | $ 3,864 | 10,579 | $ 7,786 | |
Long-lived assets | $ 7 | $ 7 | $ 6 |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Restricted Cash - Summary of Reconciliation of Cash and Cash Equivalents with Restricted or Segregated Cash (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents | $ 413,612 | $ 460,858 |
Cash segregated under federal regulations | 50,108 | 50,059 |
Deposits with clearing organizations and broker-dealers | 81,433 | 97,043 |
Total | 545,243 | 608,050 |
Cash and Cash Equivalents [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Cash and cash equivalents | 413,612 | 460,858 |
Cash Segregated under Federal Regulations and Other [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Cash segregated under federal regulations | 50,108 | 50,059 |
Receivables from Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Deposits with clearing organizations and broker-dealers | 81,433 | 97,043 |
Prepaid Expenses and Other Assets [Member] | ||
Cash And Cash Equivalents [Line Items] | ||
Other deposits | $ 90 | $ 90 |