Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 03, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37352 | |
Entity Registrant Name | Virtu Financial, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 32-0420206 | |
Entity Address, Address Line One | One Liberty Plaza | |
Entity Address, Address Line Two | 165 Broadway | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10006 | |
City Area Code | 212 | |
Local Phone Number | 418-0100 | |
Title of 12(b) Security | Class A common stock, par value $0.00001 per share | |
Trading Symbol | VIRT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001592386 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Class A common stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 112,339,058 | |
Class C common stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,763,065 | |
Class D common stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 60,091,740 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 683,836 | $ 889,559 |
Cash restricted or segregated under regulations and other | 70,477 | 117,446 |
Securities borrowed | 1,277,601 | 1,425,016 |
Securities purchased under agreements to resell | 170,194 | 22,866 |
Receivables from broker-dealers and clearing organizations | 1,452,426 | 1,684,006 |
Trading assets, at fair value: | ||
Financial instruments owned | 3,018,838 | 2,369,192 |
Financial instruments owned and pledged | 959,056 | 746,539 |
Receivables from customers | 414,244 | 214,478 |
Property, equipment and capitalized software (net of accumulated depreciation of $470,524 and $455,961 as of September 30, 2021 and December 31, 2020, respectively) | 103,963 | 113,590 |
Operating lease right-of-use assets | 247,531 | 268,864 |
Goodwill | 1,148,926 | 1,148,926 |
Intangibles (net of accumulated amortization of $236,581 and $183,494 as of September 30, 2021 and December 31, 2020, respectively) | 402,912 | 454,499 |
Deferred tax assets | 176,279 | 193,070 |
Other assets ($87,926 and $68,316, at fair value, as of September 30, 2021 and December 31, 2020, respectively) | 303,194 | 317,747 |
Total assets | 10,429,477 | 9,965,798 |
Liabilities | ||
Short-term borrowings | 312,814 | 64,686 |
Securities loaned | 1,017,436 | 948,256 |
Securities sold under agreements to repurchase | 583,268 | 461,235 |
Payables to broker-dealers and clearing organizations | 1,094,971 | 876,446 |
Payables to customers | 182,939 | 118,826 |
Trading liabilities, at fair value: | ||
Financial instruments sold, not yet purchased | 2,871,649 | 2,923,708 |
Tax receivable agreement obligations | 254,660 | 271,165 |
Accounts payable, accrued expenses and other liabilities | 413,998 | 491,818 |
Operating lease liabilities | 292,967 | 315,340 |
Long-term borrowings | 1,604,062 | 1,639,280 |
Total liabilities | 8,628,764 | 8,110,760 |
Commitments and Contingencies (Note 15) | ||
Virtu Financial Inc. Stockholders' equity | ||
Treasury stock, at cost, 14,652,441 and 3,615,097 shares at September 30, 2021 and December 31, 2020, respectively | (392,468) | (88,923) |
Additional paid-in capital | 1,209,064 | 1,160,567 |
Retained earnings (accumulated deficit) | 690,568 | 422,381 |
Accumulated other comprehensive income (loss) | (21,838) | (25,487) |
Total Virtu Financial Inc. stockholders' equity | 1,485,328 | 1,468,540 |
Noncontrolling interest | 315,385 | 386,498 |
Total equity | 1,800,713 | 1,855,038 |
Total liabilities and equity | 10,429,477 | 9,965,798 |
Class A common stock | ||
Virtu Financial Inc. Stockholders' equity | ||
Common stock (par value $0.00001) | 1 | 1 |
Class B common stock | ||
Virtu Financial Inc. Stockholders' equity | ||
Common stock (par value $0.00001) | 0 | 0 |
Class C common stock | ||
Virtu Financial Inc. Stockholders' equity | ||
Common stock (par value $0.00001) | 0 | 0 |
Class D common stock | ||
Virtu Financial Inc. Stockholders' equity | ||
Common stock (par value $0.00001) | $ 1 | $ 1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accumulated depreciation | $ 470,524 | $ 455,961 |
Intangibles, accumulated amortization | 236,581 | 183,494 |
Fair value of other assets | $ 87,926 | $ 68,316 |
Treasury stock, shares (in shares) | 14,652,441 | 3,615,097 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 127,872,786 | 125,627,277 |
Common stock, shares outstanding (in shares) | 113,220,345 | 122,012,180 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 175,000,000 | 175,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Class C common stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares issued (in shares) | 9,763,065 | 10,226,939 |
Common stock, shares outstanding (in shares) | 9,763,065 | 10,226,939 |
Class D common stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 175,000,000 | 175,000,000 |
Common stock, shares issued (in shares) | 60,091,740 | 60,091,740 |
Common stock, shares outstanding (in shares) | 60,091,740 | 60,091,740 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues: | ||||
Trading income, net | $ 394,265 | $ 441,295 | $ 1,591,840 | $ 1,987,756 |
Interest and dividends income | $ 9,704 | $ 10,932 | $ 26,246 | $ 46,788 |
Revenue from contract with customer, product and service [Extensible Enumeration] | Commissions, Net and Technology Services [Member] | Commissions, Net and Technology Services [Member] | Commissions, Net and Technology Services [Member] | Commissions, Net and Technology Services [Member] |
Commissions, net and technology services | $ 135,923 | $ 133,853 | $ 470,687 | $ 452,333 |
Other, net | 4,452 | 70,032 | 17,108 | 75,758 |
Total revenue | 544,344 | 656,112 | 2,105,881 | 2,562,635 |
Operating Expenses: | ||||
Brokerage, exchange, clearance fees and payments for order flow, net | 158,862 | 196,448 | 588,885 | 573,769 |
Communication and data processing | 55,627 | 51,647 | 159,824 | 162,336 |
Employee compensation and payroll taxes | 84,552 | 35,798 | 273,172 | 327,091 |
Interest and dividends expense | 26,586 | 27,374 | 75,585 | 97,656 |
Operations and administrative | 18,228 | 24,612 | 65,636 | 73,480 |
Depreciation and amortization | 16,636 | 16,656 | 49,764 | 50,728 |
Amortization of purchased intangibles and acquired capitalized software | 16,933 | 18,265 | 53,087 | 56,177 |
Termination of office leases | 238 | 60 | 5,126 | 343 |
Debt issue cost related to debt refinancing, prepayment and commitment fees | 1,237 | 9,916 | 4,981 | 27,282 |
Transaction advisory fees and expenses | 167 | 2,463 | 150 | 2,737 |
Financing interest expense on long-term borrowings | 20,179 | 20,358 | 59,784 | 67,764 |
Total operating expenses | 399,245 | 403,597 | 1,335,994 | 1,439,363 |
Income before income taxes and noncontrolling interest | 145,099 | 252,515 | 769,887 | 1,123,272 |
Provision for income taxes | 21,961 | 52,807 | 128,611 | 200,044 |
Net income | 123,138 | 199,708 | 641,276 | 923,228 |
Noncontrolling interest | (52,631) | (82,999) | (268,454) | (386,311) |
Net income available for common stockholders | $ 70,507 | $ 116,709 | $ 372,822 | $ 536,917 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.59 | $ 0.92 | $ 3.04 | $ 4.31 |
Diluted (in dollars per share) | $ 0.59 | $ 0.92 | $ 3.01 | $ 4.29 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 115,770,457 | 122,686,931 | 119,148,571 | 121,328,895 |
Diluted (in shares) | 116,623,115 | 123,772,005 | 120,373,160 | 121,939,839 |
Net income | $ 123,138 | $ 199,708 | $ 641,276 | $ 923,228 |
Other comprehensive income | ||||
Foreign exchange translation adjustment, net of taxes | (7,843) | 7,812 | (11,452) | 3,860 |
Net change in unrealized cash flow hedges gain (loss), net of taxes | 3,498 | 314 | 18,197 | (64,425) |
Comprehensive income | 118,793 | 207,834 | 648,021 | 862,663 |
Less: Comprehensive income attributable to noncontrolling interest | (51,007) | (86,761) | (271,552) | (360,302) |
Comprehensive income attributable to common stockholders | $ 67,786 | $ 121,073 | $ 376,469 | $ 502,361 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands | Total | Class A Common Stock | Common StockClass A Common Stock | Common StockClass C Common Stock | Common StockClass D Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total Virtu Financial Inc. Stockholders' Equity | Noncontrolling Interest |
Balance at beginning period (in shares) at Dec. 31, 2019 | 120,435,912 | 12,887,178 | 60,091,740 | 2,178,771 | |||||||
Balance at beginning of period at Dec. 31, 2019 | $ 1,228,936 | $ 1 | $ 0 | $ 1 | $ (55,005) | $ 1,077,398 | $ (90,374) | $ (647) | $ 931,374 | $ 297,562 | |
Increase (decrease) in stockholder's/members' equity | |||||||||||
Share based compensation (in shares) | 1,854,961 | ||||||||||
Share based compensation | 21,357 | 21,357 | 21,357 | ||||||||
Treasury stock purchases (in shares) | (642,869) | ||||||||||
Treasury stock purchases | (9,801) | (9,801) | (9,801) | ||||||||
Stock options exercised (in shares) | 213,129 | ||||||||||
Stock options exercised | 3,206 | 3,206 | 3,206 | ||||||||
Warrants issued | 11,486 | 11,486 | 11,486 | ||||||||
Net income | 388,238 | 221,069 | 221,069 | 167,169 | |||||||
Foreign exchange translation adjustment | (10,396) | (5,884) | (5,884) | (4,512) | |||||||
Net change in unrealized cash flow hedges gains (losses) | (55,602) | (31,468) | (31,468) | (24,134) | |||||||
Dividends ($0.24 per share of Class A common stock and participating Restricted Stock Unit and Restricted Stock Awards) and distributions from Virtu Financial to noncontrolling interest | (48,767) | (29,602) | (29,602) | (19,165) | |||||||
Issuance of common stock in connection with employee exchanges (in shares) | 724,327 | ||||||||||
Repurchase of virtu financial units and corresponding number of Class C common stock in connection with employee exchanges (in shares) | (724,327) | ||||||||||
Balance at end of period (in shares) at Mar. 31, 2020 | 122,585,460 | 12,162,851 | 60,091,740 | 2,178,771 | |||||||
Balance at end of period at Mar. 31, 2020 | 1,528,657 | $ 1 | $ 0 | $ 1 | $ (55,005) | 1,113,447 | 91,292 | (37,999) | 1,111,737 | 416,920 | |
Balance at beginning period (in shares) at Dec. 31, 2019 | 120,435,912 | 12,887,178 | 60,091,740 | 2,178,771 | |||||||
Balance at beginning of period at Dec. 31, 2019 | 1,228,936 | $ 1 | $ 0 | $ 1 | $ (55,005) | 1,077,398 | (90,374) | (647) | 931,374 | 297,562 | |
Increase (decrease) in stockholder's/members' equity | |||||||||||
Net income | 923,228 | ||||||||||
Foreign exchange translation adjustment | 3,860 | ||||||||||
Net change in unrealized cash flow hedges gains (losses) | (64,425) | ||||||||||
Balance at end of period (in shares) at Sep. 30, 2020 | 125,059,325 | 10,466,939 | 60,091,740 | 2,178,771 | |||||||
Balance at end of period at Sep. 30, 2020 | 1,806,807 | $ 1 | $ 0 | $ 1 | $ (55,005) | 1,143,149 | 343,817 | (35,203) | 1,396,760 | 410,047 | |
Balance at beginning period (in shares) at Mar. 31, 2020 | 122,585,460 | 12,162,851 | 60,091,740 | 2,178,771 | |||||||
Balance at beginning of period at Mar. 31, 2020 | 1,528,657 | $ 1 | $ 0 | $ 1 | $ (55,005) | 1,113,447 | 91,292 | (37,999) | 1,111,737 | 416,920 | |
Increase (decrease) in stockholder's/members' equity | |||||||||||
Share based compensation (in shares) | 36,771 | ||||||||||
Share based compensation | 7,839 | 7,839 | 7,839 | ||||||||
Treasury stock purchases (in shares) | (8,727) | ||||||||||
Treasury stock purchases | (360) | (360) | (360) | ||||||||
Stock options exercised (in shares) | 404,794 | ||||||||||
Stock options exercised | 7,691 | 7,691 | 7,691 | ||||||||
Net income | 335,285 | 199,142 | 199,142 | 136,143 | |||||||
Foreign exchange translation adjustment | 6,444 | 3,674 | 3,674 | 2,770 | |||||||
Net change in unrealized cash flow hedges gains (losses) | (9,137) | (5,242) | (5,242) | (3,895) | |||||||
Dividends ($0.24 per share of Class A common stock and participating Restricted Stock Unit and Restricted Stock Awards) and distributions from Virtu Financial to noncontrolling interest | (175,412) | (30,201) | (30,201) | (145,211) | |||||||
Issuance of common stock in connection with employee exchanges (in shares) | 1,635,912 | ||||||||||
Repurchase of virtu financial units and corresponding number of Class C common stock in connection with employee exchanges (in shares) | (1,635,912) | ||||||||||
Balance at end of period (in shares) at Jun. 30, 2020 | 124,654,210 | 10,526,939 | 60,091,740 | 2,178,771 | |||||||
Balance at end of period at Jun. 30, 2020 | 1,701,007 | $ 1 | $ 0 | $ 1 | $ (55,005) | 1,128,977 | 259,873 | (39,567) | 1,294,280 | 406,727 | |
Increase (decrease) in stockholder's/members' equity | |||||||||||
Share based compensation (in shares) | 234,981 | ||||||||||
Share based compensation | 10,568 | 10,568 | 10,568 | ||||||||
Treasury stock purchases (in shares) | (79,570) | ||||||||||
Treasury stock purchases | (2,418) | (2,418) | (2,418) | ||||||||
Stock options exercised (in shares) | 189,704 | ||||||||||
Stock options exercised | 3,604 | 3,604 | |||||||||
Net income | 199,708 | 116,709 | 116,709 | 82,999 | |||||||
Foreign exchange translation adjustment | 7,812 | 4,213 | 4,213 | 3,599 | |||||||
Net change in unrealized cash flow hedges gains (losses) | 314 | 151 | 151 | 163 | |||||||
Dividends ($0.24 per share of Class A common stock and participating Restricted Stock Unit and Restricted Stock Awards) and distributions from Virtu Financial to noncontrolling interest | (113,788) | (30,347) | (30,347) | (83,441) | |||||||
Issuance of common stock in connection with employee exchanges (in shares) | 60,000 | ||||||||||
Repurchase of virtu financial units and corresponding number of Class C common stock in connection with employee exchanges (in shares) | (60,000) | ||||||||||
Balance at end of period (in shares) at Sep. 30, 2020 | 125,059,325 | 10,466,939 | 60,091,740 | 2,178,771 | |||||||
Balance at end of period at Sep. 30, 2020 | 1,806,807 | $ 1 | $ 0 | $ 1 | $ (55,005) | 1,143,149 | 343,817 | (35,203) | 1,396,760 | 410,047 | |
Balance at beginning period (in shares) at Dec. 31, 2020 | 125,627,277 | 10,226,939 | 60,091,740 | 3,615,097 | |||||||
Balance at beginning of period at Dec. 31, 2020 | 1,855,038 | $ 1 | $ 0 | $ 1 | $ (88,923) | 1,160,567 | 422,381 | (25,487) | 1,468,540 | 386,498 | |
Increase (decrease) in stockholder's/members' equity | |||||||||||
Share based compensation (in shares) | 1,896,407 | ||||||||||
Share based compensation | 27,450 | 27,450 | 27,450 | ||||||||
Treasury stock purchases (in shares) | (615,794) | (2,277,409) | |||||||||
Treasury stock purchases | (79,418) | $ (63,359) | (16,059) | (79,418) | |||||||
Stock options exercised (in shares) | 154,372 | ||||||||||
Stock options exercised | 2,933 | 2,933 | 2,933 | ||||||||
Net income | 409,232 | 239,405 | 239,405 | 169,827 | |||||||
Foreign exchange translation adjustment | (3,676) | (2,165) | (2,165) | (1,511) | |||||||
Net change in unrealized cash flow hedges gains (losses) | 21,906 | 12,607 | 12,607 | 9,299 | |||||||
Dividends ($0.24 per share of Class A common stock and participating Restricted Stock Unit and Restricted Stock Awards) and distributions from Virtu Financial to noncontrolling interest | (189,386) | (30,147) | (30,147) | (159,239) | |||||||
Issuance of common stock in connection with employee exchanges (in shares) | 91,757 | ||||||||||
Repurchase of virtu financial units and corresponding number of Class C common stock in connection with employee exchanges (in shares) | (91,757) | ||||||||||
Balance at end of period (in shares) at Mar. 31, 2021 | 127,154,019 | 10,135,182 | 60,091,740 | 5,892,506 | |||||||
Balance at end of period at Mar. 31, 2021 | 2,044,079 | $ 1 | $ 0 | $ 1 | $ (152,282) | 1,190,950 | 615,580 | (15,045) | 1,639,205 | 404,874 | |
Balance at beginning period (in shares) at Dec. 31, 2020 | 125,627,277 | 10,226,939 | 60,091,740 | 3,615,097 | |||||||
Balance at beginning of period at Dec. 31, 2020 | 1,855,038 | $ 1 | $ 0 | $ 1 | $ (88,923) | 1,160,567 | 422,381 | (25,487) | 1,468,540 | 386,498 | |
Increase (decrease) in stockholder's/members' equity | |||||||||||
Repurchase of Class C common stock | $ (12,500) | ||||||||||
Treasury stock purchases (in shares) | (132,500,000) | ||||||||||
Treasury stock purchases | (337,500) | ||||||||||
Net income | 641,276 | ||||||||||
Foreign exchange translation adjustment | (11,452) | ||||||||||
Net change in unrealized cash flow hedges gains (losses) | 18,197 | ||||||||||
Balance at end of period (in shares) at Sep. 30, 2021 | 127,872,786 | 9,763,065 | 60,091,740 | 14,652,441 | |||||||
Balance at end of period at Sep. 30, 2021 | 1,800,713 | $ 1 | $ 0 | $ 1 | $ (392,468) | 1,209,064 | 690,568 | (21,838) | 1,485,328 | 315,385 | |
Balance at beginning period (in shares) at Mar. 31, 2021 | 127,154,019 | 10,135,182 | 60,091,740 | 5,892,506 | |||||||
Balance at beginning of period at Mar. 31, 2021 | 2,044,079 | $ 1 | $ 0 | $ 1 | $ (152,282) | 1,190,950 | 615,580 | (15,045) | 1,639,205 | 404,874 | |
Increase (decrease) in stockholder's/members' equity | |||||||||||
Share based compensation (in shares) | 32,916 | ||||||||||
Share based compensation | 7,444 | 7,444 | 7,444 | ||||||||
Repurchase of Class C common stock (in shares) | (45,622) | ||||||||||
Repurchase of Class C common stock | (1,323) | (1,323) | (1,323) | ||||||||
Treasury stock purchases (in shares) | (5,489) | (3,358,003) | |||||||||
Treasury stock purchases | (101,419) | $ (101,305) | (114) | (101,419) | |||||||
Stock options exercised (in shares) | 253,625 | ||||||||||
Stock options exercised | 4,819 | 4,819 | 4,819 | ||||||||
Net income | 108,907 | 62,910 | 62,910 | 45,997 | |||||||
Foreign exchange translation adjustment | 66 | 43 | 43 | 23 | |||||||
Net change in unrealized cash flow hedges gains (losses) | (7,206) | (4,115) | (4,115) | (3,091) | |||||||
Dividends ($0.24 per share of Class A common stock and participating Restricted Stock Unit and Restricted Stock Awards) and distributions from Virtu Financial to noncontrolling interest | (132,545) | (29,483) | (29,483) | (103,062) | |||||||
Issuance of common stock in connection with employee exchanges (in shares) | 290,524 | ||||||||||
Repurchase of virtu financial units and corresponding number of Class C common stock in connection with employee exchanges (in shares) | (290,524) | ||||||||||
Balance at end of period (in shares) at Jun. 30, 2021 | 127,725,595 | 9,799,036 | 60,091,740 | 9,250,509 | |||||||
Balance at end of period at Jun. 30, 2021 | 1,922,822 | $ 1 | $ 0 | $ 1 | $ (253,587) | 1,201,890 | 648,893 | (19,117) | 1,578,081 | 344,741 | |
Increase (decrease) in stockholder's/members' equity | |||||||||||
Share based compensation (in shares) | 103,154 | ||||||||||
Share based compensation | 6,803 | 6,803 | 6,803 | ||||||||
Repurchase of Class C common stock (in shares) | (12,980) | ||||||||||
Repurchase of Class C common stock | (370) | (370) | (370) | ||||||||
Treasury stock purchases (in shares) | (17,954) | (5,401,932) | |||||||||
Treasury stock purchases | (139,377) | $ (138,881) | (496) | (139,377) | |||||||
Stock options exercised (in shares) | 39,000 | ||||||||||
Stock options exercised | 741 | 741 | 741 | ||||||||
Net income | 123,138 | 70,507 | 70,507 | 52,631 | |||||||
Foreign exchange translation adjustment | (7,843) | (4,912) | (4,912) | (2,931) | |||||||
Net change in unrealized cash flow hedges gains (losses) | 3,498 | 2,191 | 2,191 | 1,307 | |||||||
Dividends ($0.24 per share of Class A common stock and participating Restricted Stock Unit and Restricted Stock Awards) and distributions from Virtu Financial to noncontrolling interest | (108,699) | (28,336) | (28,336) | (80,363) | |||||||
Issuance of common stock in connection with employee exchanges (in shares) | 22,991 | ||||||||||
Repurchase of virtu financial units and corresponding number of Class C common stock in connection with employee exchanges (in shares) | (22,991) | ||||||||||
Balance at end of period (in shares) at Sep. 30, 2021 | 127,872,786 | 9,763,065 | 60,091,740 | 14,652,441 | |||||||
Balance at end of period at Sep. 30, 2021 | $ 1,800,713 | $ 1 | $ 0 | $ 1 | $ (392,468) | $ 1,209,064 | $ 690,568 | $ (21,838) | $ 1,485,328 | $ 315,385 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 0.24 | $ 0.24 | $ 0.24 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 641,276 | $ 923,228 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 49,764 | 50,728 |
Amortization of purchased intangibles and acquired capitalized software | 53,087 | 56,177 |
Debt issue cost related to debt refinancing and prepayment | 649 | 7,555 |
Amortization of debt issuance costs and deferred financing fees | 5,243 | 24,164 |
Termination of office leases | 5,126 | 343 |
Share-based compensation | 38,260 | 37,510 |
Deferred taxes | 16,791 | 22,204 |
Gain on sale of MATCHNow | 0 | (58,652) |
Other | (15,093) | (14,750) |
Changes in operating assets and liabilities: | ||
Securities borrowed | 147,415 | 602,920 |
Securities purchased under agreements to resell | (147,328) | 125,619 |
Receivables from broker-dealers and clearing organizations | 231,580 | (563,297) |
Trading assets, at fair value | (862,163) | (51,507) |
Receivables from customers | (199,766) | (73,408) |
Operating lease right-of-use assets | 20,135 | 27,457 |
Other assets | 43,898 | (67,469) |
Securities loaned | 69,180 | (894,310) |
Securities sold under agreements to repurchase | 122,033 | 126,253 |
Payables to broker-dealers and clearing organizations | 236,722 | (216,143) |
Payables to customers | 64,113 | 52,261 |
Trading liabilities, at fair value | (52,059) | 292,177 |
Operating lease liabilities | (22,373) | (34,738) |
Accounts payable, accrued expenses and other liabilities | (71,968) | 109,276 |
Net cash provided by operating activities | 374,522 | 483,598 |
Cash flows from investing activities | ||
Development of capitalized software | (30,154) | (27,463) |
Acquisition of property and equipment | (16,326) | (21,717) |
Proceeds from sale of MATCHNow | 0 | 60,592 |
Other investing activities | (18,960) | (7,968) |
Net cash provided by (used in) investing activities | (65,440) | 3,444 |
Cash flows from financing activities | ||
Dividends to stockholders and distributions from Virtu Financial to noncontrolling interest | (430,630) | (337,966) |
Repurchase of Class C common stock | (1,693) | 0 |
Purchase of treasury stock | (320,214) | (12,579) |
Stock options exercised | 8,493 | 14,502 |
Short-term borrowings, net | 249,622 | 49,388 |
Repayment of long term borrowings | (36,737) | (288,500) |
Tax receivable agreement obligations | (16,505) | (13,286) |
Debt issuance costs | (2,658) | (9,779) |
Net cash used in financing activities | (550,322) | (598,220) |
Effect of exchange rate changes on cash and cash equivalents | (11,452) | 3,860 |
Net decrease in cash and cash equivalents | (252,692) | (107,318) |
Cash, cash equivalents, and restricted or segregated cash, beginning of period | 1,007,005 | 773,280 |
Cash, cash equivalents, and restricted or segregated cash, end of period | 754,313 | 665,962 |
Supplementary disclosure of cash flow information | ||
Cash paid for interest | 115,890 | 137,750 |
Cash paid for taxes | 130,565 | 207,387 |
Non-cash investing activities | ||
Share-based and accrued incentive compensation to developers relating to capitalized software | $ 12,935 | $ 9,672 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Organization The accompanying condensed consolidated financial statements include the accounts and operations of Virtu Financial, Inc. (“VFI” or, collectively with its wholly owned or controlled subsidiaries, “Virtu” or the “Company”). VFI is a Delaware corporation whose primary asset is its ownership interest in Virtu Financial LLC (“Virtu Financial”). As of September 30, 2021, VFI owned approximately 62.6% of the membership interests of Virtu Financial. VFI is the sole managing member of Virtu Financial and operates and controls all of the businesses and affairs of Virtu Financial and its subsidiaries (the “Group”). The Company is a leading financial firm that leverages cutting edge technology to deliver liquidity to the global markets and innovative, transparent trading solutions to its clients. The Company provides deep liquidity in over 25,000 financial instruments, on over 235 venues, in 36 countries worldwide to help create more efficient markets. Leveraging its global market structure expertise and scaled, multi-asset infrastructure, the Company provides its clients with a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology. The Company’s product offerings allow its clients to trade on hundreds of venues in over 50 countries and across multiple asset classes, including global equities, Exchange-Traded Funds ("ETFs"), foreign exchange, futures, fixed income and other commodities. The Company’s integrated, multi-asset analytics platform provides a range of pre- and post-trade services, data products and compliance tools that its clients rely upon to invest, trade and manage risk across global markets. The Company has completed two significant acquisitions over the past five years that have expanded and complemented Virtu Financial's original electronic trading and marking making business. On July 20, 2017 (the “KCG Closing Date”), the Company completed the all-cash acquisition of KCG Holdings, Inc. (“KCG”) (the “Acquisition of KCG”). On March 1, 2019 (the “ITG Closing Date”), the Company completed the acquisition of Investment Technology Group, Inc. and its subsidiaries (“ITG”) in an all-cash transaction valued at $30.30 per ITG share, for a total of approximately $1.0 billion (the “ITG Acquisition”). ITG's business contributes to the Company's Execution Services segment. Virtu Financial’s principal United States ("U.S.") subsidiary is Virtu Americas LLC (“VAL”), which is a U.S. broker-dealer. Other principal U.S. subsidiaries include Virtu Financial Global Markets LLC, a U.S. trading entity focused on futures and currencies; Virtu ITG Analytics LLC, a provider of pre- and post-trade analysis, fair value, and trade optimization services; and Virtu ITG Platforms LLC, a provider of workflow technology solutions and network connectivity services. Principal foreign subsidiaries include Virtu Financial Ireland Limited ("VFIL") and Virtu ITG Europe Limited ("VIEL"), each formed in Ireland; Virtu ITG UK Limited ("VIUK"), formed in the United Kingdom; Virtu ITG Canada Corp. and Virtu Financial Canada ULC, each formed in Canada; Virtu Financial Asia Pty Ltd. and Virtu ITG Australia Limited, each formed in Australia; Virtu ITG Hong Kong Limited, formed in Hong Kong; and Virtu Financial Singapore Pte. Ltd. and Virtu ITG Singapore Pte. Ltd., each formed in Singapore, all of which are trading entities focused on asset classes in their respective geographic regions. The Company has two operating segments: (i) Market Making and (ii) Execution Services; and one non-operating segment: Corporate. See Note 21 "Geographic Information and Business Segments" for a further discussion of the Company’s segments. Basis of Consolidation and Form of Presentation These condensed consolidated financial statements are presented in U.S. dollars, have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding financial reporting with respect to Form 10-Q and accounting standards generally accepted in the United States of America (“U.S. GAAP”) promulgated by the Financial Accounting Standards Board (“FASB”) in the Accounting Standards Codification (“ASC” or the “Codification”), 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 periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted in accordance with SEC rules and regulations. The condensed 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 condensed consolidated financial statements of the Company include its equity interests in Virtu Financial and its subsidiaries. As sole managing member of Virtu Financial, the Company exerts control over the Group’s operations. The Company consolidates Virtu Financial and its subsidiaries’ financial statements and records the interests in Virtu Financial that the Company does not own as noncontrolling interests. All intercompany accounts and transactions have been eliminated in consolidation. Certain reclassifications have been made to the prior period's condensed 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 consolidated net income available to common stockholders. Effective for the quarter ended March 31, 2021, the Company changed the presentation of its Condensed Consolidated Statements of Changes in Equity and Condensed Consolidated Statements of Cash Flows. As a result, the Company combined $30.3 million of Dividends to stockholders and $83.4 million of Distribution from Virtu Financial to noncontrolling interest, and $90.1 million of Dividends to stockholders and $247.8 million of Distribution from Virtu Financial to noncontrolling interest into one line, Dividends to stockholders and distribution from Virtu Financial to noncontrolling interest for the three and nine months ended September 30, 2020, respectively. Dividends and distributions from Virtu Financial to noncontrolling interest both represent cash payments by the Company to its equity owners which reduce Total equity. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies For a detailed discussion of the Company's significant accounting policies, see Note 2 "Summary of Significant Accounting Policies" in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2020. Accounting Pronouncements, Recently Adopted Income Taxes - In December 2019, the FASB issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The ASU also amends other aspects of the guidance relating to the accounting for franchise taxes, enacted changes in tax laws or rates, the accounting for transactions that result in a step-up in the tax basis of goodwill, and other tax-related items. The Company adopted this ASU on January 1, 2021 and it did not have a material impact on its condensed consolidated financial statements. Accounting Pronouncements, Not Yet Adopted as of September 30, 2021 Reference Rate Reform - In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which is designed to ease the potential burden in accounting for the transition away from 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 is effective for all entities as of March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which expands the scope of Topic 848 to include derivative instruments that are affected by changes in the interest rates used for margining, discounting or contract price alignment as part of the market transition to new reference rates (the "discounting transition"). The Company is evaluating the impact of these ASUs, but does not expect it to have a material impact on its Condensed Consolidated Financial Statements and related disclosures. Convertible Instruments - In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40). The ASU simplifies accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity and updates selected earnings per share ("EPS") guidance. The ASU is effective for periods beginning after December 15, 2021. The Company is currently evaluating the impact of the new standard on its Condensed Consolidated Financial Statements and related disclosures. |
Sale of MATCHNow
Sale of MATCHNow | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of MATCHNow | Sale of MATCHNowIn May 2020, the Company entered into a Securities Purchase Agreement ("SPA") with Cboe Global Markets, Inc. (“CBOE”) pursuant to which the Company agreed to sell 100% of the outstanding interests in TriAct Canada Marketplace LP and TCM Corp., which operate an equities alternative trading system (“MATCHNow”) in Canada. Pursuant to the terms of the SPA, the Company also agreed to enter into a licensing agreement for the licensing of certain software and intellectual property used in support of MATCHNow. On August 4, 2020 (the "MATCHNow Closing Date"), the Company completed the sale of MATCHNow to CBOE for total gross proceeds of $60.6 million in cash, with additional contingent consideration of up to approximately $23.0 million. The Company incurred one-time transaction costs including professional fees related to the sale of $2.5 million, which were recorded in Transaction advisory fees and expenses on the Condensed Consolidated Statements of Comprehensive Income. The Company recognized a gain on sale of $58.7 million, which was recorded in Other, net on the Condensed Consolidated Statements of Comprehensive Income for the year ended September 30, 2020. A summary of the carrying value of MATCHNow and gain on sale of MATCHNow is as follows: (in thousands) Total sale proceeds received $ 60,592 Total carrying value of MATCHNow as of MATCHNow Closing Date (1,940) Gain on sale of MATCHNow 58,652 Transaction costs (2,453) Gain on sale of MATCHNow, net of transaction costs $ 56,199 Contingent consideration may be earned based on the future performance of MATCHNow following the MATCHNow Closing Date. Deferred payments will be assessed quarterly until December 31, 2022 and recorded in Other, net on the Condensed Consolidated Statements of Comprehensive Income when the contingency is resolved and payments become payable by CBOE. In addition, the Company entered into a Transition Services Agreement ("TSA") with CBOE, pursuant to which the Company agreed to provide certain telecom and general and administrative services for a defined period. Income from performing services under the TSA are recorded in Other, net on the Condensed Consolidated Statements of Comprehensive Income. With the licensing of certain software and intellectual property associated with MATCHNow, the Company performed an assessment of impairment of long-lived intangible assets acquired in connection with the ITG acquisition, of which MATCHNow technology was a component. No impairment was recognized for the three and nine months ended September 30, 2020. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The below table contains a reconciliation of net income (loss) before noncontrolling interest to net income (loss) available for common stockholders: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Income before income taxes and noncontrolling interest $ 145,099 $ 252,515 $ 769,887 $ 1,123,272 Provision for income taxes 21,961 52,807 128,611 200,044 Net income 123,138 199,708 641,276 923,228 Noncontrolling interest (52,631) (82,999) (268,454) (386,311) Net income available for common stockholders $ 70,507 $ 116,709 $ 372,822 $ 536,917 The calculation of basic and diluted earnings per share is presented below: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except for share or per share data) 2021 2020 2021 2020 Basic earnings (loss) per share: Net income available for common stockholders $ 70,507 $ 116,709 $ 372,822 $ 536,917 Less: Dividends and undistributed earnings allocated to participating securities (2,222) (3,417) (10,335) (14,210) Net income available for common stockholders, net of dividends and undistributed earnings allocated to participating securities 68,285 113,292 362,487 522,707 Weighted average shares of common stock outstanding: Class A 115,770,457 122,686,931 119,148,571 121,328,895 Basic earnings (loss) per share $ 0.59 $ 0.92 $ 3.04 $ 4.31 Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except for share or per share data) 2021 2020 2021 2020 Diluted earnings (loss) per share: Net income available for common stockholders, net of dividends and undistributed earnings allocated to participating securities $ 68,285 $ 113,292 $ 362,487 $ 522,707 Weighted average shares of common stock outstanding: Class A Issued and outstanding 115,770,457 122,686,931 119,148,571 121,328,895 Issuable pursuant to Amended and Restated 2015 Management Incentive Plan, Amended and Restated Investment Technology Group, Inc. 2007 Omnibus Equity Compensation Plan, and Warrants issued in connection with the Founder Member Loan 852,657 1,085,074 1,224,589 610,944 116,623,114 123,772,005 120,373,160 121,939,839 Diluted earnings (loss) per share $ 0.59 $ 0.92 $ 3.01 $ 4.29 |
Tax Receivable Agreements
Tax Receivable Agreements | 9 Months Ended |
Sep. 30, 2021 | |
Tax Receivable Agreements [Abstract] | |
Tax Receivable Agreements | Tax Receivable Agreements For a detailed discussion of the Company's tax receivable agreements, see Note 7 "Tax Receivable Agreements" in our consolidated financial statements included in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2020. For purposes of the tax receivable agreements, the cash savings realized by the Company are computed by comparing the actual income tax liability of the Company to the amount of such taxes the Company would have been required to pay had there been (i) no increase to the tax basis of the assets of Virtu Financial as a result of the purchase or exchange of Virtu Financial Units, (ii) no tax benefit from the tax basis in the intangible assets of Virtu Financial on the date of the IPO and (iii) no tax benefit as a result of the Net Operating Losses (“NOLs”) and other tax attributes of Virtu Financial. Subsequent adjustments of the tax receivable agreements obligations due to certain events (e.g., changes to the expected realization of NOLs or changes in tax rates) will be recognized within income before taxes and noncontrolling interests in the Condensed Consolidated Statements of Comprehensive Income. The Company made its first payment of $7.0 million in February 2017, its second payment of $12.4 million in September 2018, its third payment of $13.3 million in March 2020, and its fourth payment of $16.5 million in April 2021. Tax receivable payments are expected to range from approximately $0.9 million to $21.7 million per year over the next 15 years. At September 30, 2021 and December 31, 2020, the Company’s remaining deferred tax assets that relate to the matters described above were approximately $184.3 million and $199.1 million, respectively, and the Company’s liabilities over the next 15 years pursuant to the tax receivable agreements were approximately $254.7 million and $271.2 million, respectively. The amounts recorded as of September 30, 2021 and December 31, 2020 are based on best estimates available at the respective dates and may be subject to change after the filing of the Company’s U.S. federal and state income tax returns for the years in which tax savings were realized. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company has two operating segments: (i) Market Making; (ii) Execution Services; and one non-operating segment: Corporate. As of September 30, 2021 and December 31, 2020, the Company’s total amount of goodwill recorded was $1,148.9 million. No goodwill impairment was recognized during the three and nine months ended September 30, 2021 and 2020. The following table presents the details of goodwill by segment as of September 30, 2021 and December 31, 2020: (in thousands) Market Making Execution Services Corporate Total Balance as of period-end $ 755,292 $ 393,634 $ — $ 1,148,926 As of September 30, 2021 and December 31, 2020, the Company's total amount of intangible assets recorded was $402.9 million and $454.5 million, respectively. Acquired intangible assets consisted of the following as of September 30, 2021 and December 31, 2020: As of September 30, 2021 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Useful Lives Customer relationships $ 486,600 $ (130,182) $ 356,418 10 to 12 Technology 136,000 (97,966) 38,034 1 to 6 Favorable occupancy leases 5,895 (3,433) 2,462 3 to 15 Exchange memberships 3,998 — 3,998 Indefinite Trade name 3,600 (3,100) 500 3 ETF issuer relationships 950 (950) — 9 ETF buyer relationships 950 (950) — 9 Other $ 1,500 $ — $ 1,500 Indefinite $ 639,493 $ (236,581) $ 402,912 As of December 31, 2020 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Useful Lives Customer relationships $ 486,600 $ (94,299) $ 392,301 10 to 12 Technology 136,000 (82,403) 53,597 1 to 6 Favorable occupancy leases 5,895 (2,839) 3,056 3 to 15 Exchange memberships 3,998 — 3,998 Indefinite Trade name 3,600 (2,200) 1,400 3 ETF issuer relationships 950 (877) 73 9 ETF buyer relationships 950 (876) 74 9 Other $ — $ — $ — Indefinite $ 637,993 $ (183,494) $ 454,499 Amortization expense relating to finite-lived intangible assets was approximately $16.9 million and $18.3 million for the three months ended September 30, 2021 and 2020, respectfully, and $53.1 million and $56.2 million for the nine months ended September 30, 2021 and 2020, respectively. This is included in Amortization of purchased intangibles and acquired capitalized software in the accompanying Condensed Consolidated Statements of Comprehensive Income. The Company expects to record amortization expense as follows over the remaining current year and the next five subsequent years: (in thousands) Remainder of 2021 $ 16,580 2022 64,852 2023 63,960 2024 50,845 2025 47,879 2026 47,879 |
Receivables from_Payables to Br
Receivables from/Payables to Broker-Dealers and Clearing Organizations | 9 Months Ended |
Sep. 30, 2021 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Receivables from/Payables to Broker-Dealers and Clearing Organizations | Receivables from/Payables to Broker-Dealers and Clearing Organizations The following is a summary of receivables from and payables to brokers-dealers and clearing organizations at September 30, 2021 and December 31, 2020: (in thousands) September 30, 2021 December 31, 2020 Assets Due from prime brokers $ 557,316 $ 697,293 Deposits with clearing organizations 181,987 216,962 Net equity with futures commission merchants 239,697 248,943 Unsettled trades with clearing organizations 3,380 118,777 Securities failed to deliver 444,138 372,965 Commissions and fees 25,908 29,066 Total receivables from broker-dealers and clearing organizations $ 1,452,426 $ 1,684,006 Liabilities Due to prime brokers $ 606,840 $ 410,772 Net equity with futures commission merchants 69,147 77,257 Unsettled trades with clearing organizations 113,250 228,070 Securities failed to receive 304,598 156,804 Commissions and fees 1,136 3,543 Total payables to broker-dealers and clearing organizations $ 1,094,971 $ 876,446 Included as a deduction from “Due from prime brokers” and “Net equity with futures commission merchants” is the outstanding principal balance on all of the Company’s prime brokerage credit facilities (described in Note 9 "Borrowings") of approximately $202.5 million and $134.7 million as of September 30, 2021 and December 31, 2020, respectively. The loan proceeds from the credit facilities are available only to meet the initial margin requirements associated with the Company’s ordinary course futures and other trading positions, which are held in the Company’s trading accounts with an affiliate of the respective financial institutions. The credit facilities are fully collateralized by the Company’s trading accounts and deposit accounts with these financial institutions. “Securities failed to deliver” and “Securities failed to receive” include amounts with a clearing organization and other broker-dealers. |
Collateralized Transactions
Collateralized Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Collateralized Agreements [Abstract] | |
Collateralized Transactions | Collateralized Transactions The Company is permitted to sell or repledge securities received as collateral and use these securities to secure repurchase agreements, enter into securities lending transactions or deliver these securities to counterparties or clearing organizations to cover short positions. At September 30, 2021 and December 31, 2020, substantially all of the securities received as collateral have been repledged. The fair value of the collateralized transactions at September 30, 2021 and December 31, 2020 are summarized as follows: (in thousands) September 30, 2021 December 31, 2020 Securities received as collateral: Securities borrowed $ 1,221,032 $ 1,374,266 Securities purchased under agreements to resell 170,194 22,866 $ 1,391,226 $ 1,397,132 In the normal course of business, the Company pledges qualified securities with clearing organizations to satisfy daily margin and clearing fund requirements. Financial instruments owned and pledged, where the counterparty has the right to repledge, at September 30, 2021 and December 31, 2020 consisted of the following: (in thousands) September 30, 2021 December 31, 2020 Equities $ 947,661 $ 734,024 Exchange traded notes 11,395 12,515 $ 959,056 $ 746,539 |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Short-term Borrowings, net The following summarizes the Company's short-term borrowing balances outstanding, net of related debt issuance costs, with each described in further detail below. September 30, 2021 (in thousands) Borrowing Outstanding Deferred Debt Issuance Cost Short-term Borrowings, net Broker-dealer credit facilities $ 178,000 $ (1,881) $ 176,119 Short-term bank loans 136,695 — 136,695 $ 314,695 $ (1,881) $ 312,814 December 31, 2020 (in thousands) Borrowing Outstanding Deferred Debt Issuance Cost Short-term Borrowings, net Broker-dealer credit facilities $ 36,400 $ (387) $ 36,013 Short-term bank loans 28,673 — 28,673 $ 65,073 $ (387) $ 64,686 Broker-Dealer Credit Facilities The Company is a party to two secured credit facilities with a financial institution to finance overnight securities positions purchased as part of its ordinary course broker-dealer market making activities. One of the facilities (the “Uncommitted Facility”) is provided on an uncommitted basis with an aggregate borrowing limit of $400 million, and is collateralized by VAL's trading and deposit account maintained at the financial institution. The second credit facility (the “Committed Facility”) with the same financial institution has a borrowing limit of $600 million. The Committed Facility consists of two borrowing bases: Borrowing Base A Loan is to be used to finance the purchase and settlement of securities; Borrowing Base B Loan is to be used to fund margin deposit with the National Securities Clearing Corporation. Borrowing Base A Loans are available up to $600 million and bear interest at the adjusted LIBOR or base rate plus 1.25% per annum. Borrowing Base B Loans are subject to a sublimit of $200 million and bear interest at the adjusted LIBOR or base rate plus 2.50% per annum. A commitment fee of 0.50% per annum on the average daily unused portion of this facility is payable quarterly in arrears. On March 10, 2020, VAL entered into a short-term loan arrangement with Jefferies Financial Group, Inc., as lender, for a $20 million demand loan (the "Demand Loan") repayable no later than ninety (90) days after the date of borrowing. The Demand Loan bore interest at a rate of 10% per annum, increased by 2.0% with respect to any principal amounts not paid when due and payable. The Demand Loan was repaid in full as of April 17, 2020. On March 20, 2020, VAL entered into a Loan Agreement (the “Founder Member Loan Facility”) with TJMT Holdings LLC (the “Founder Member”), as lender and administrative agent, providing for unsecured term loans from time to time (the “Founder Member Loans”) in an aggregate original principal amount not to exceed $300 million. The Founder Member Loans were available to be borrowed in one or more borrowings on or after March 20, 2020 and prior to September 20, 2020 (the "Founder Member Loan Term"). The Founder Member Loan Facility Term expired as of September 20, 2020 without VAL having borrowed any Founder Member Loans at any time. The Founder Member is an affiliate of Mr. Vincent Viola, the Company’s founder and Chairman Emeritus. Upon the execution of and in consideration for the Lender’s (as defined in the Founder Member Loan Facility) commitments under the Founder Member Loan Facility, the Company delivered to the Founder Member a warrant to purchase shares of the Company’s Class A Common Stock. Terms of the warrant are set forth in further detail in Note 18 "Capital Structure". The following summarizes the Company’s broker-dealer credit facilities' carrying values, net of unamortized debt issuance costs, where applicable. These balances are included within Short-term borrowings on the Condensed Consolidated Statements of Financial Condition. At September 30, 2021 (in thousands) Interest Rate Financing Available Borrowing Outstanding Deferred Debt Issuance Cost Outstanding Borrowings, net Broker-dealer credit facilities: Uncommitted facility 1.25% $ 400,000 $ 178,000 $ (1,881) $ 176,119 Committed facility 2.61% 600,000 — — — $ 1,000,000 $ 178,000 $ (1,881) $ 176,119 At December 31, 2020 (in thousands) Interest Rate Financing Available Borrowing Outstanding Deferred Debt Issuance Cost Outstanding Borrowings, net Broker-dealer credit facilities: Uncommitted facility 1.25% $ 400,000 $ 36,400 $ (387) $ 36,013 Committed facility 1.40% 600,000 — — — $ 1,000,000 $ 36,400 $ (387) $ 36,013 The following summarizes interest expense for the broker-dealer facilities. Interest expense is included within Interest and dividends expense in the accompanying Condensed Consolidated Statements of Comprehensive Income. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Broker-dealer credit facilities: Uncommitted facility $ 540 $ 244 $ 1,790 $ 1,007 Committed facility — 71 57 433 Demand Loan — — — 211 $ 540 $ 315 $ 1,847 $ 1,651 Short-Term Bank Loans The Company’s international securities clearance and settlement activities are funded with operating cash or with short-term bank loans in the form of overdraft facilities. At September 30, 2021, there was $136.7 million associated with international settlement activities outstanding under these facilities at a weighted average interest rate of approximately 1.2%. At December 31, 2020, there was $28.7 million associated with international settlement activities outstanding under these facilities at a weighted average interest rate of approximately 2.4%. These short-term bank loan balances are included within Short-term borrowings on the Condensed Consolidated Statements of Financial Condition. Prime Brokerage Credit Facilities The Company maintains short-term credit facilities with various prime brokers and other financial institutions from which it receives execution or clearing services. The proceeds of these facilities are used to meet margin requirements associated with the products traded by the Company in the ordinary course, and amounts borrowed are collateralized by the Company’s trading accounts with the applicable financial institution. At September 30, 2021 (in thousands) Weighted Average Financing Borrowing Prime Brokerage Credit Facilities: Prime brokerage credit facilities (1) 2.78% $ 616,000 $ 202,480 $ 616,000 $ 202,480 At December 31, 2020 (in thousands) Weighted Average Financing Borrowing Prime Brokerage Credit Facilities: Prime brokerage credit facilities (1) 2.77% $ 616,000 $ 134,664 $ 616,000 $ 134,664 (1) Outstanding borrowings are included with Receivables from/Payables to broker-dealers and clearing organizations within the Condensed Consolidated Statements of Financial Condition. Interest expense in relation to the facilities was approximately $1.4 million and $1.2 million for the three months ended September 30, 2021 and 2020 , and $3.5 million and $3.8 million for the nine months ended September 30, 2021 and 2020, respectively. Long-Term Borrowings The following summarizes the Company’s long-term borrowings, net of unamortized discount and debt issuance costs, where applicable: At September 30, 2021 (in thousands) Maturity Interest Outstanding Principal Discount Deferred Debt Issuance Cost Outstanding Borrowings, net Long-term borrowings: First Lien Term Loan Facility March 2026 3.08% $ 1,599,774 $ (3,949) $ (23,187) $ 1,572,638 SBI bonds January 2023 5.00% 31,450 — (26) 31,424 $ 1,631,224 $ (3,949) $ (23,213) $ 1,604,062 At December 31, 2020 (in thousands) Maturity Interest Outstanding Principal Discount Deferred Debt Issuance Cost Outstanding Borrowings, net Long-term borrowings: First Lien Term Loan Facility March 2026 3.15% $ 1,636,512 $ (4,723) $ (26,367) $ 1,605,422 SBI bonds January 2023 5.00% 33,898 — (40) 33,858 $ 1,670,410 $ (4,723) $ (26,407) $ 1,639,280 Credit Agreement In connection with the ITG Acquisition, Virtu Financial, VFH Parent LLC, a Delaware limited liability company and a subsidiary of Virtu Financial ("VFH") and Impala Borrower LLC, a subsidiary of the Company (the "Acquisition Borrower") entered into a Credit Agreement (the "Credit Agreement"), with the lenders party thereto, Jefferies Finance LLC, as administrative agent and Jefferies Finance LLC and RBC Capital Markets, as joint lead arrangers and joint bookrunners. The Credit Agreement provided (i) a senior secured first lien term loan (together with the Incremental Term Loans, as defined below; the “First Lien Term Loan Facility”) in an aggregate principal amount of $1,500 million, drawn in its entirety on the ITG Closing Date, of which amount approximately $404.5 million was borrowed by VFH to repay all amounts outstanding under a previous term loan facility and the remaining approximately $1,095 million was borrowed by the Acquisition Borrower to finance the consideration and fees and expenses paid in connection with the ITG Acquisition, and (ii) a $50.0 million senior secured first lien revolving facility to VFH (the “First Lien Revolving Facility”), with a $5.0 million letter of credit subfacility and a $5.0 million swingline subfacility. After the ITG Closing Date, VFH assumed the obligations of the Acquisition Borrower in respect of the acquisition term loans. On October 9, 2019, VFH entered into an amendment (“Amendment No. 1”), which amended the Credit Agreement dated as of March 1, 2019 to, among other things, provide for $525.0 million in aggregate principal amount of incremental term loans (the “Incremental Term Loans”), and amend the related collateral agreement. On March 2, 2020, VFH entered into a second amendment (“Amendment No. 2”), which further amended the Credit Agreement (as amended by Amendment No. 1 and Amendment No. 2, the “Amended Credit Agreement”) to, among other things, reduce the interest rate spread over adjusted LIBOR or the alternate base rate by 0.50% per annum and eliminated any stepdown in the spread based on VFH's first lien leverage ratio. The term loan borrowings and revolver borrowings under the Amended Credit Agreement bear interest at a per annum rate equal to, at the Company's election, either (i) the greatest of (a) the prime rate in effect, (b) the greater of (1) the federal funds effective rate and (2) the overnight bank funding rate, in each case plus 0.50%, (c) an adjusted LIBOR rate for a Eurodollar borrowing with an interest period of one month plus 1.00% and (d) 1.00%, plus, in each case, 2.00%, or (ii) the greater of (x) an adjusted LIBOR rate for the interest period in effect and (y) 0%, plus, in each case, 3.00%. In addition, a commitment fee accrues at a rate of 0.50% per annum on the average daily unused amount of the First Lien Revolving Facility, with stepdowns to 0.375% and 0.25% per annum based on VFH’s first lien leverage ratio, and is payable quarterly in arrears. The First Lien Revolving Facility under the Amended Credit Agreement is subject to a springing net first lien leverage ratio test which may spring into effect as of the last day of a fiscal quarter if usage of the aggregate revolving commitments exceeds a specified level as of such date. VFH is also subject to contingent principal prepayments based on excess cash flow and certain other triggering events. Borrowings under the Amended Credit Agreement are guaranteed by Virtu Financial and VFH’s material non-regulated domestic restricted subsidiaries and secured by substantially all of the assets of VFH and the guarantors, in each case, subject to certain exceptions. Under the Amended Credit Agreement, the term loans will mature on March 1, 2026. The term loans amortize in annual installments equal to 1.0% of the original aggregate principal amount of the term loans. As of September 30, 2021, $1,600 million was outstanding under the First Lien Term Loan Facility. The revolving commitments will terminate on March 1, 2022. There were no outstanding borrowings under the First Lien Revolving Facility as of September 30, 2021 or December 31, 2020. The Amended Credit Agreement contains certain customary covenants and events of default, including relating to a change of control. If an event of default occurs and is continuing, the lenders under the Amended Credit Agreement will be entitled to take various actions, including the acceleration of amounts outstanding under the Amended Credit Agreement and all actions permitted to be taken by a secured creditor in respect of the collateral securing the obligations under the Amended Credit Agreement. In October 2019, the Company entered into a five-year $525 million floating-to-fixed interest rate swap agreement. The Company also entered into a five-year $1,000 million floating-to-fixed interest rate swap agreement in January 2020. As these two interest rate swaps met the criteria to be considered qualifying cash flow hedges under ASC 815 in 2020, they effectively fix interest payment obligations on $525.0 million and $1,000 million of principal under the First Lien Term Loan Facility at rates of 4.3% and 4.4% through September 2024 and January 2025, respectively, based on the interest rates set forth in the Amended Credit Agreement. In April 2021, each of the swap agreements described above was novated to another counterparty and amended in connection with such novation. The amendments included certain changes to collateral posting obligations, and also had the effect of increasing the effective fixed interest payment obligations to rates of 4.5%, with respect to the earlier maturing swap arrangement, and 4.6% with respect to the later maturing swap arrangement. SBI Bonds On July 25, 2016, VFH issued Japanese Yen Bonds (collectively the “SBI Bonds”) in the aggregate principal amount of ¥3.5 billion ($33.1 million at issuance date) to SBI Life Insurance Co., Ltd. and SBI Insurance Co., Ltd. The proceeds from the SBI Bonds were used to partially fund the investment in Japannext Co., Ltd. (as described in Note 10 "Financial Assets and Liabilities"). The SBI Bonds are guaranteed by Virtu Financial. The SBI Bonds are subject to fluctuations on the Japanese Yen currency rates relative to the Company’s reporting currency (U.S. Dollar) with the changes reflected in Other, net in the Condensed Consolidated Statements of Comprehensive Income. In December 2019, the maturity date of the SBI Bonds was extended to January 2023. The principal balance was ¥3.5 billion ($31.5 million) as of September 30, 2021 and ¥3.5 billion ($33.9 million) as of December 31, 2020. The Company had a gain of $0.1 million and a loss of $0.8 million during the three months ended September 30, 2021, and 2020, respectively, and a gain of $2.4 million and a loss of $1.0 million during the nine months ended September 30, 2021 and 2020, respectively, due to changes in foreign currency rates. As of September 30, 2021, aggregate future required minimum principal payments based on the terms of the long-term borrowings were as follows: (in thousands) September 30, 2021 Remainder of 2021 $ — 2022 — 2023 31,450 2024 — 2025 — Thereafter 1,599,774 Total principal of long-term borrowings $ 1,631,224 |
Financial Assets and Liabilitie
Financial Assets and Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities | Financial Assets and Liabilities Financial Instruments Measured at Fair Value The fair value of equities, options, on-the-run U.S. government obligations and exchange traded notes is estimated using recently executed transactions and market price quotations in active markets and are categorized as Level 1 with the exception of inactively traded equities and certain other financial instruments, which are categorized as Level 2. The Company’s corporate bonds, derivative contracts and other U.S. and non-U.S. government obligations have been categorized as Level 2. Fair value of the Company’s derivative contracts is based on the indicative prices obtained from a number of banks and broker-dealers, as well as management’s own analyses. The indicative prices have been independently validated through the Company’s risk management systems, which are designed to check prices with information independently obtained from exchanges and venues where such financial instruments are listed or to compare prices of similar instruments with similar maturities for listed financial futures in foreign exchange. The Company prices certain financial instruments held for trading at fair value based on theoretical prices, which can differ from quoted market prices. The theoretical prices reflect price adjustments primarily caused by the fact that the Company continuously prices its financial instruments based on all available information. This information includes prices for identical and near-identical positions, as well as the prices for securities underlying the Company’s positions, on other exchanges that are open after the exchange on which the financial instruments is traded closes. The Company validates that all price adjustments can be substantiated with market inputs and checks the theoretical prices independently. Consequently, such financial instruments are classified as Level 2. Fair value measurements for those items measured on a recurring basis are summarized below as of September 30, 2021: September 30, 2021 (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Counterparty and Cash Collateral Netting Total Fair Value Assets Financial instruments owned, at fair value: Equity securities $ 436,245 $ 2,117,572 $ — $ — $ 2,553,817 U.S. and Non-U.S. government obligations 216,125 19,947 — — 236,072 Corporate Bonds — 201,086 — — 201,086 Exchange traded notes 427 8,285 — — 8,712 Currency forwards — 311,230 — (300,399) 10,831 Options 8,320 — — — 8,320 $ 661,117 $ 2,658,120 $ — $ (300,399) $ 3,018,838 Financial instruments owned, pledged as collateral: Equity securities $ 576,478 $ 371,183 $ — $ — $ 947,661 Exchange traded notes 5,389 6,006 — — 11,395 $ 581,867 $ 377,189 $ — $ — $ 959,056 Other Assets Equity investment $ — $ — $ 85,317 $ — $ 85,317 Exchange stock 2,609 — — — 2,609 $ 2,609 $ — $ 85,317 $ — $ 87,926 Liabilities Financial instruments sold, not yet purchased, at fair value: Equity securities $ 1,336,070 $ 825,070 $ — $ — $ 2,161,140 U.S. and Non-U.S. government obligations 285,997 12,747 — — 298,744 Corporate Bonds — 349,299 — — 349,299 Exchange traded notes 835 4,750 — — 5,585 Currency forwards — 316,352 — (308,611) 7,741 Options 49,140 — — — 49,140 $ 1,672,042 $ 1,508,218 $ — $ (308,611) $ 2,871,649 Payables to broker dealers and clearing organizations: Interest rate swap $ — $ 43,608 $ — $ — $ 43,608 Fair value measurements for those items measured on a recurring basis are summarized below as of December 31, 2020: December 31, 2020 (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Counterparty and Cash Collateral Netting Total Fair Value Assets Financial instruments owned, at fair value: Equity securities $ 761,484 $ 1,194,105 $ — $ — $ 1,955,589 U.S. and Non-U.S. government obligations 151,723 48,059 — — 199,782 Corporate Bonds — 135,518 — — 135,518 Exchange traded notes 106 19,721 — — 19,827 Currency forwards — 341,360 — (291,964) 49,396 Options 9,080 — — — 9,080 $ 922,393 $ 1,738,763 $ — $ (291,964) $ 2,369,192 Financial instruments owned, pledged as collateral: Equity securities $ 496,943 $ 237,081 $ — $ — $ 734,024 Exchange traded notes 2 12,513 — — 12,515 $ 496,945 $ 249,594 $ — $ — $ 746,539 Other Assets Equity investment $ — $ — $ 66,030 $ — $ 66,030 Exchange stock 2,286 — — — 2,286 $ 2,286 $ — $ 66,030 $ — $ 68,316 Liabilities Financial instruments sold, not yet purchased, at fair value: Equity securities $ 1,307,082 $ 1,137,968 $ — $ — $ 2,445,050 U.S. and Non-U.S. government obligations 83,173 19,984 — — 103,157 Corporate Bonds — 358,734 — — 358,734 Exchange traded notes — 7,431 — — 7,431 Currency forwards — 292,965 — (292,870) 95 Options 9,241 — — — 9,241 $ 1,399,496 $ 1,817,082 $ — $ (292,870) $ 2,923,708 Payables to broker dealers and clearing organizations: Interest rate swap $ — $ 63,513 $ — $ — $ 63,513 JNX Investment The Company has a minority investment (the “JNX Investment”) in Japannext Co., Ltd. (“JNX”), formerly known as SBI Japannext Co., Ltd., a proprietary trading system based in Tokyo. In connection with the JNX Investment, the Company issued the SBI Bonds (as described in Note 9 "Borrowings") and used the proceeds to partially finance the transaction. The JNX Investment is included within Level 3 of the fair value hierarchy. As of September 30, 2020 and 2021, the fair value of the JNX Investment was determined using a weighted average of valuations using 1) the discounted cash flow method, an income approach; 2) a market approach based on average enterprise value/EBITDA ratios of comparable companies; and to a lesser extent 3) a transaction approach based on transaction values of comparable companies. The fair value measurement is highly sensitive to significant changes in the unobservable inputs, and significant increases (decreases) in discount rate or decreases (increases) in enterprise value/EBITDA multiples would result in a significantly lower (higher) fair value measurement. The table below presents information on the valuation techniques, significant unobservable inputs and their ranges for the JNX Investment: September 30, 2021 (in thousands) Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average Equity investment $ 85,317 Discounted cash flow Estimated revenue growth 2.4% - 22.7% 8.5 % Discount rate 14.4% - 14.4% 14.4 % Market Future enterprise value/ EBIDTA ratio 9.8x - 44.5x 17.2x December 31, 2020 (in thousands) Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average Equity investment $ 66,030 Discounted cash flow Estimated revenue growth (9.0)% - 39.0% 9.6 % Discount rate 14.4% - 14.4% 14.4 % Market Future enterprise value/ EBIDTA ratio 12.2x - 21.9x 13.8x Changes in the fair value of the JNX Investment are included within Other, net in the Condensed Consolidated Statements of Comprehensive Income. The following presents the changes in the Company's Level 3 financial instruments measured at fair value on a recurring basis: Three Months Ended September 30, 2021 (in thousands) Balance at June 30, 2021 Purchases Total Realized and Unrealized Gains / (Losses) (1) Net Transfers into (out of) Level 3 Settlement Balance at September 30, 2021 Change in Net Unrealized Gains / (Losses) on Investments still held at September 30, 2021 Assets Other assets: Equity investment $ 78,313 $ — $ 7,004 $ — $ — $ 85,317 $ 7,004 Total $ 78,313 $ — $ 7,004 $ — $ — $ 85,317 $ 7,004 (1) Total realized and unrealized gains/(losses) includes gains and losses realized on the SBI Bonds (see Note 9 "Borrowings" for more details) due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment. Three Months Ended September 30, 2020 (in thousands) Balance at June 30, 2020 Purchases Total Realized and Unrealized Gains / (Losses) (1) Net Transfers into (out of) Level 3 Settlement Balance at September 30, 2020 Change in Net Unrealized Gains / (Losses) on Investments still held at September 30, 2020 Assets Other assets: Equity investment $ 51,599 $ — $ 13,104 $ — $ — $ 64,703 $ 13,104 Total $ 51,599 $ — $ 13,104 $ — $ — $ 64,703 $ 13,104 (1) Total realized and unrealized gains/(losses) includes gains and losses realized on the SBI Bonds (see Note 9 "Borrowings" for more details) due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment. Nine Months Ended September 30, 2021 (in thousands) Balance at December 31, 2020 Purchases Total Realized and Unrealized Gains / (Losses) (1) Net Transfers into (out of) Level 3 Settlement Balance at September 30, 2021 Change in Net Unrealized Gains / (Losses) on Investments still held at September 30, 2021 Assets Other assets: Equity investment $ 66,030 $ — $ 19,287 $ — $ — $ 85,317 $ 19,287 Total $ 66,030 $ — $ 19,287 $ — $ — $ 85,317 $ 19,287 (1) Total realized and unrealized gains/(losses) includes gains and losses realized on the SBI Bonds (see Note 9 "Borrowings" for more details) due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment. Nine Months Ended September 30, 2020 (in thousands) Balance at December 31, 2019 Purchases Total Realized and Unrealized Gains / (Losses) (1) Net Transfers into (out of) Level 3 Settlement Balance at September 30, 2020 Change in Net Unrealized Gains / (Losses) on Investments still held at September 30, 2020 Assets Other assets: Equity investment $ 46,245 $ — $ 18,458 $ — $ — $ 64,703 $ 18,458 Total $ 46,245 $ — $ 18,458 $ — $ — $ 64,703 $ 18,458 (1) Total realized and unrealized gains/(losses) includes gains and losses realized on the SBI Bonds (see Note 9 "Borrowings" for more details) due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment. Financial Instruments Not Measured at Fair Value The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value on the Condensed Consolidated Statements of Financial Condition. The table below excludes non-financial assets and liabilities. The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximates fair value due to the relatively short-term nature of the underlying assets. The fair value of the Company’s long-term borrowings is based on quoted prices from the market for similar instruments, and is categorized as Level 2 in the fair value hierarchy. The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of September 30, 2021: September 30, 2021 Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 683,836 $ 683,836 $ 683,836 $ — $ — Cash restricted or segregated under regulations and other 70,477 70,477 70,477 — — Securities borrowed 1,277,601 1,277,601 — 1,277,601 — Securities purchased under agreements to resell 170,194 170,194 — 170,194 — Receivables from broker-dealers and clearing organizations 1,452,426 1,452,426 415 1,452,011 — Receivables from customers 414,244 414,244 — 414,244 — Other assets (1) 14,427 14,427 — 14,427 — Total Assets $ 4,083,205 $ 4,083,205 $ 754,728 $ 3,328,477 $ — Liabilities Short-term borrowings $ 312,814 $ 314,695 $ — $ 314,695 $ — Long-term borrowings 1,604,062 1,629,224 — 1,629,224 — Securities loaned 1,017,436 1,017,436 — 1,017,436 — Securities sold under agreements to repurchase 583,268 583,268 — 583,268 — Payables to broker-dealers and clearing organizations (2) 1,094,971 1,094,971 532,533 562,438 — Payables to customers 182,939 182,939 — 182,939 — Other liabilities (3) 8,904 8,904 — 8,904 — Total Liabilities $ 4,804,394 $ 4,831,437 $ 532,533 $ 4,298,904 $ — (1) Includes cash collateral and deposits, and interest and dividends receivables. (2) Payables to broker-dealers and clearing organizations include interest rate swaps carried at fair value. (3) Includes deposits, interest and dividends payable. The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of December 31, 2020: December 31, 2020 Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 889,559 $ 889,559 $ 889,559 $ — $ — Cash restricted or segregated under regulations and other 117,446 117,446 117,446 — — Securities borrowed 1,425,016 1,425,016 — 1,425,016 — Securities purchased under agreements to resell 22,866 22,866 — 22,866 — Receivables from broker-dealers and clearing organizations 1,684,006 1,684,006 173,578 1,510,428 — Receivables from customers 214,478 214,478 — 214,478 — Other assets (1) 21,735 21,735 — 21,735 — Total Assets $ 4,375,106 $ 4,375,106 $ 1,180,583 $ 3,194,523 $ — Liabilities Short-term borrowings 64,686 65,073 — 65,073 — Long-term borrowings 1,639,280 1,672,456 — 1,672,456 — Securities loaned 948,256 948,256 — 948,256 — Securities sold under agreements to repurchase 461,235 461,235 — 461,235 — Payables to broker dealer and clearing organizations (2) 876,446 876,446 3,517 872,929 — Payables to customers 118,826 118,826 — 118,826 — Other liabilities (3) 9,208 9,208 — 9,208 — Total Liabilities $ 4,117,937 $ 4,151,500 $ 3,517 $ 4,147,983 $ — (1) Includes cash collateral and deposits, and interest and dividends receivables. (2) Payables to broker-dealers and clearing organizations include interest rate swaps carried at fair value. (3) Includes deposits, interest and dividends payable. Offsetting of Financial Assets and Liabilities The Company does not net securities borrowed and securities loaned, or securities purchased under agreements to resell and securities sold under agreements to repurchase. These financial instruments are presented on a gross basis in the Condensed Consolidated Statements of Financial Condition. In the tables below, the amounts of financial instruments owned that are not offset in the Condensed Consolidated Statements of Financial Condition, but could be netted against financial liabilities with specific counterparties under legally enforceable master netting agreements in the event of default, are presented to provide financial statement readers with the Company’s estimate of its net exposure to counterparties for these financial instruments. The following tables set forth the gross and net presentation of certain financial assets and financial liabilities as of September 30, 2021 and December 31, 2020: September 30, 2021 Gross Amounts of Recognized Assets Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instrument Collateral Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Assets: Securities borrowed $ 1,277,601 $ — $ 1,277,601 $ (1,221,032) $ (8,097) $ 48,472 Securities purchased under agreements to resell 170,194 — 170,194 (170,194) — — Trading assets, at fair value: Currency forwards 311,230 (300,399) 10,831 — — 10,831 Options 8,320 — 8,320 — (8,320) — Total $ 1,767,345 $ (300,399) $ 1,466,946 $ (1,391,226) $ (16,417) $ 59,303 Gross Amounts of Recognized Liabilities Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instruments Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Liabilities: Securities loaned $ 1,017,436 $ — $ 1,017,436 $ (995,181) $ (12,655) $ 9,600 Securities sold under agreements to repurchase 583,268 — 583,268 (583,268) — — Payable to broker-dealers and clearing organizations Interest rate swaps 43,608 — 43,608 — — 43,608 Trading liabilities, at fair value: Currency forwards 316,352 (308,611) 7,741 — — 7,741 Options 49,140 — 49,140 — (8,320) 40,820 Total $ 2,009,804 $ (308,611) $ 1,701,193 $ (1,578,449) $ (20,975) $ 101,769 December 31, 2020 Gross Amounts of Recognized Assets Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instrument Collateral Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Assets: Securities borrowed $ 1,425,016 $ — $ 1,425,016 $ (1,374,266) $ (9,686) $ 41,064 Securities purchased under agreements to resell 22,866 — 22,866 (22,866) — — Trading assets, at fair value: Currency forwards 341,360 (291,964) 49,396 — — 49,396 Options 9,080 — 9,080 — (9,080) — Total $ 1,798,322 $ (291,964) $ 1,506,358 $ (1,397,132) $ (18,766) $ 90,460 Gross Amounts of Recognized Assets Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instrument Collateral Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Liabilities: Securities loaned $ 948,256 $ — $ 948,256 $ (921,593) $ (17,800) $ 8,863 Securities sold under agreements to repurchase 461,235 — 461,235 (461,235) — — Interest rate swaps 63,513 — 63,513 — (63,162) 351 Trading liabilities, at fair value: Currency forwards 292,965 (292,870) 95 — — 95 Options 9,241 — 9,241 — (9,080) 161 Total $ 1,775,210 $ (292,870) $ 1,482,340 $ (1,382,828) $ (90,042) $ 9,470 The following table presents gross obligations for securities sold under agreements to repurchase and for securities lending transactions by remaining contractual maturity and the class of collateral pledged: September 30, 2021 Remaining Contractual Maturity (in thousands) Overnight and Continuous Less than 30 days 30 - 60 61 - 90 Greater than 90 Total Securities sold under agreements to repurchase: Equity securities $ — $ 125,000 $ 50,000 $ 160,000 $ 50,000 $ 385,000 U.S. and Non-U.S. government obligations 198,268 — — — 198,268 Total $ 198,268 $ 125,000 $ 50,000 $ 160,000 $ 50,000 $ 583,268 Securities loaned: Equity securities $ 1,017,436 $ — $ — $ — $ — $ 1,017,436 Total $ 1,017,436 $ — $ — $ — $ — $ 1,017,436 December 31, 2020 Remaining Contractual Maturity (in thousands) Overnight and Continuous Less than 30 days 30 - 60 61 - 90 Greater than 90 Total Securities sold under agreements to repurchase: Equity securities $ — $ 125,000 $ 50,000 $ 200,000 $ — $ 375,000 U.S. and Non-U.S. government obligations 86,235 — — — — 86,235 Total $ 86,235 $ 125,000 $ 50,000 $ 200,000 $ — $ 461,235 Securities loaned: Equity securities 948,256 — — — — 948,256 Total $ 948,256 $ — $ — $ — $ — $ 948,256 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The fair value of the Company’s derivative instruments on a gross basis consisted of the following at September 30, 2021 and December 31, 2020: (in thousands) September 30, 2021 December 31, 2020 Derivatives Assets Financial Statements Location Fair Value Notional Fair Value Notional Derivative instruments not designated as hedging instruments: Equities futures Receivables from broker-dealers and clearing organizations $ (753) $ 1,371,507 $ 4,669 $ 2,208,899 Commodity futures Receivables from broker-dealers and clearing organizations (217) 137,010 173,889 6,237,389 Currency futures Receivables from broker-dealers and clearing organizations 1,964 847,313 (11,736) 2,823,277 Fixed income futures Receivables from broker-dealers and clearing organizations 158 16,292 42 102,476 Options Financial instruments owned 8,320 934,627 9,080 746,723 Currency forwards Financial instruments owned 311,230 28,029,260 341,360 30,596,681 Derivatives Liabilities Financial Statements Location Fair Value Notional Fair Value Notional Derivative instruments not designated as hedging instruments: Equities futures Payables to broker-dealers and clearing organizations $ 1,240 $ 398,517 $ 31 $ 90,219 Commodity futures Payables to broker-dealers and clearing organizations (533,414) 9,633,999 (5,397) 27,287 Currency futures Payables to broker-dealers and clearing organizations (6,057) 2,664,776 3,598 2,269,898 Fixed income futures Payables to broker-dealers and clearing organizations 97 51,091 — 1,566 Options Financial instruments sold, not yet purchased 49,140 936,594 9,241 736,997 Currency forwards Financial instruments sold, not yet purchased 316,352 28,031,821 292,965 30,572,490 Derivative instruments designated as hedging instruments: Interest rate swaps Payables to broker-dealers and clearing organizations 43,608 1,525,000 63,513 1,525,000 Amounts included in receivables from and payables to broker-dealers and clearing organizations represent net variation margin on long and short futures contracts as well as amounts receivable or payable on interest rate swaps. The following table summarizes the net gain (loss) from derivative instruments not designated as hedging instruments under ASC 815, which are recorded in total revenues, and from those designated as hedging instruments under ASC 815, which are recorded in other comprehensive income in the accompanying Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021 and 2020. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) Financial Statements Location 2021 2020 2021 2020 Derivative instruments not designated as hedging instruments: Futures Trading income, net $ 84,875 $ (12,262) $ 213,569 $ 11,440 Currency forwards Trading income, net (49,599) 62,465 12,756 255,044 Options Trading income, net 9,455 35,343 63,016 61,643 Interest rate swap on term loan Other, net (474) (1,417) (1,397) (1,417) $ 44,257 $ 84,129 $ 287,944 $ 326,710 Derivative instruments designated as hedging instruments: Interest rate swaps (1) Other comprehensive income $ 4,112 $ 314 $ 21,453 $ (64,425) $ 4,112 $ 314 $ 21,453 $ (64,425) (1) The Company entered into a five-year $1,000 million floating-to-fixed interest rate swap agreement in the first quarter of 2020 and a five-year $525 million floating-to-fixed interest rate swap agreement in the fourth quarter of 2019. These two interest rate swaps met the criteria to be considered qualifying cash flow hedges under ASC 815 in the first quarter of 2020, and as such, the mark-to-market gains (losses) on the instruments were recorded within Other comprehensive income on the Condensed Consolidated Statements of Comprehensive Income beginning in the first quarter of 2020. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | Variable Interest Entities A variable interest entity (“VIE”) is an entity that lacks one or more of the following characteristics: (i) the total equity investment at risk is sufficient to enable the entity to finance its activities independently and (ii) the equity holders have the power to direct the activities of the entity that most significantly impact its economic performance, the obligation to absorb the losses of the entity and the right to receive the residual returns of the entity. The Company will be considered to have a controlling financial interest and will consolidate a VIE if it has both (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company has interests in two joint ventures (“JV”) that build and maintain microwave communication networks in the U.S., Europe, and Asia. The Company and its JV partners each pay monthly fees for the use of the microwave communication networks in connection with their respective trading activities, and the JVs may sell excess bandwidth that is not utilized by the JV members to third parties. As of September 30, 2021, the Company held noncontrolling interests of 10% and 50%, respectively, in these JVs. The Company has an interest in a JV that offers derivatives trading technology and execution services to broker-dealers, professional traders and select hedge funds. As of September 30, 2021, the Company held approximately a 10% noncontrolling interest in this JV. The Company has an interest in a JV that is developing a member-owned equities exchange with the goal of increasing competition and transparency, while reducing fixed costs and simplifying execution of equity trading in the U.S. As of September 30, 2021, the Company held approximately a 14.1% noncontrolling interest in this JV. The Company's four JVs meet the criteria to be considered VIEs, which it does not consolidate. The Company records its interest in each JV under the equity method of accounting and records its investment in the JVs within Other assets and its amounts payable for communication services provided by the applicable JVs within Accounts payable, accrued expenses and other liabilities on the Statements of Financial Condition. The Company records its pro-rata share of each JV's earnings or losses within Other, net and fees related to the use of communication services provided by the JVs within Communications and data processing on the Condensed Consolidated Statements of Comprehensive Income. The Company’s exposure to the obligations of these VIEs is generally limited to its interests in each respective JV, which is the carrying value of the equity investment in each JV. The following table presents the Company’s nonconsolidated VIEs at September 30, 2021: Carrying Amount Maximum Exposure to Loss VIEs' assets (in thousands) Asset Liability Equity investment $ 30,388 $ — $ 30,388 $ 154,789 The following table presents the Company’s nonconsolidated VIEs at December 31, 2020: Carrying Amount Maximum Exposure to Loss VIEs' assets (in thousands) Asset Liability Equity investment $ 28,969 $ — $ 28,969 $ 175,547 |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | Revenues from Contracts with Customers For more information on revenue recognition and the nature of services provided, see Note 2 "Summary of Significant Accounting Policies" and Note 14 "Revenues from Contracts with Customers" to the Consolidated Financial Statements of the Company's 2020 Annual Report on Form 10-K. Disaggregation of Revenues The following tables present the Company’s revenue from contracts with customers disaggregated by service, by timing of revenue recognition, reconciled to the Company’s segments, for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, 2021 (in thousands) Market Making Execution Services Corporate Total Revenues from contracts with customers: Commissions, net $ 8,894 $ 93,474 $ — $ 102,368 Workflow technology — 23,149 — 23,149 Analytics — 10,406 — 10,406 Total revenue from contracts with customers 8,894 127,029 — 135,923 Other sources of revenue 400,396 5,520 2,505 408,421 Total revenues $ 409,290 $ 132,549 $ 2,505 $ 544,344 Timing of revenue recognition: Services transferred at a point in time $ 409,290 $ 114,010 $ 2,505 $ 525,805 Services transferred over time — 18,539 — 18,539 Total revenues $ 409,290 $ 132,549 $ 2,505 $ 544,344 Three Months Ended September 30, 2020 (in thousands) Market Making Execution Services Corporate Total Revenues from contracts with customers: Commissions, net $ 9,391 $ 91,460 $ — $ 100,851 Workflow technology — 23,044 — 23,044 Analytics — 9,958 — 9,958 Total revenue from contracts with customers 9,391 124,462 — 133,853 Other sources of revenue 465,207 58,218 (1,166) 522,259 Total revenues $ 474,598 $ 182,680 $ (1,166) $ 656,112 Timing of revenue recognition: Services transferred at a point in time $ 474,598 $ 164,018 $ (1,166) $ 637,450 Services transferred over time — 18,662 — 18,662 Total revenues $ 474,598 $ 182,680 $ (1,166) $ 656,112 Nine Months Ended September 30, 2021 (in thousands) Market Making Execution Services Corporate Total Revenues from contracts with customers: Commissions, net $ 32,111 $ 332,000 $ — $ 364,111 Workflow technology — 75,572 — 75,572 Analytics — 31,004 — 31,004 Total revenue from contracts with customers 32,111 438,576 — 470,687 Other sources of revenue 1,603,444 21,342 10,408 1,635,194 Total revenues $ 1,635,555 $ 459,918 $ 10,408 $ 2,105,881 Timing of revenue recognition: Services transferred at a point in time $ 1,635,555 $ 404,371 $ 10,408 $ 2,050,334 Services transferred over time — 55,547 — 55,547 Total revenues $ 1,635,555 $ 459,918 $ 10,408 $ 2,105,881 Nine Months Ended September 30, 2020 (in thousands) Market Making Execution Services Corporate Total Revenues from contracts with customers: Commissions, net $ 9,526 $ 333,823 $ — $ 343,349 Workflow technology — 78,376 — 78,376 Analytics — 30,608 30,608 Total revenue from contracts with customers 9,526 442,807 — 452,333 Other sources of revenue 2,054,774 57,814 (2,286) 2,110,302 Total revenues $ 2,064,300 $ 500,621 $ (2,286) $ 2,562,635 Timing of revenue recognition: Services transferred at a point in time $ 2,064,300 $ 444,683 $ (2,286) $ 2,506,697 Services transferred over time — 55,938 — 55,938 Total revenues $ 2,064,300 $ 500,621 $ (2,286) $ 2,562,635 Remaining Performance Obligations and Revenue Recognized from Past Performance Obligations As of September 30, 2021 and 2020, the aggregate amount of the transaction price allocated to the performance obligations relating to workflow technology and analytics revenues that are unsatisfied (or partially unsatisfied) was not material. The Company recognized $0.5 million and $0.6 million of revenue related to performance obligations satisfied in previous period for the three months ended September 30, 2021 and 2020, respectively. Contract Assets and Contract Liabilities The timing of the revenue recognition may differ from the timing of payment from customers. The Company records a receivable when revenue is recognized prior to payment, and when the Company has an unconditional right to payment. The Company records a contract liability when payment is received prior to the time at which the satisfaction of the service obligation occurs. Receivables related to revenues from contracts with customers amounted to $49.1 million and $57.3 million as of September 30, 2021 and December 31, 2020, respectively. The Company did not identify any contract assets. There were no impairment losses on receivables as of September 30, 2021. Deferred revenue primarily relates to deferred commissions allocated to analytics products and subscription fees billed in advance of satisfying the performance obligations. Deferred revenue related to contracts with customers was $10.0 million and $9.3 million as of September 30, 2021 and December 31, 2020, respectively. The Company recognized revenue of $9.2 million and $8.6 million for the three months ended September 30, 2021 and 2020 respectively, and $24.4 million and $23.6 million during the nine months ended September 30, 2021 and 2020, respectively that had been initially recorded as deferred revenue. The Company has not identified any costs to obtain or fulfill its contracts under ASC 606. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to U.S. federal, state and local income tax at the rate applicable to corporations less the rate attributable to the noncontrolling interest in Virtu Financial. These noncontrolling interests are subject to U.S. taxation as partnerships. Accordingly, for the three and nine months ended September 30, 2021 and 2020, the income attributable to these noncontrolling interests was reported in the Condensed Consolidated Statements of Comprehensive Income, but the related U.S. income tax expense attributable to these noncontrolling interests was not reported by the Company as it is the obligation of the individual partners. The Company’s provisions for income taxes and effective tax rates were $22.0 million, 15.1%, and $52.8 million, 20.9% for the three months ended September 30, 2021 and 2020, respectively, and $128.6 million, 16.7% and $200.0 million, 17.8% for the nine months ended September 30, 2021 and 2020, respectively. Income tax expense is also affected by the differing effective tax rates in foreign, state and local jurisdictions where certain of the Company’s subsidiaries are subject to corporate taxation. Included in Other assets on the Condensed Consolidated Statements of Financial Condition at September 30, 2021 and December 31, 2020 are current income tax receivables of $49.8 million and $83.1 million, respectively. The balances at September 30, 2021 and December 31, 2020 primarily comprised income tax benefits due to the Company from federal, state, local, and foreign tax jurisdictions based on income before taxes. Included in Accounts payable, accrued expenses and other liabilities on the Condensed Consolidated Statements of Financial Condition at September 30, 2021 and December 31, 2020 are current tax liabilities of $12.6 million and $37.9 million, respectively. The balances at September 30, 2021 and December 31, 2020 primarily comprise income taxes owed to federal, state and local, and foreign tax jurisdictions based on income before taxes. Deferred income taxes arise primarily due to the amortization of the deferred tax assets recognized in connection with the IPO (see Note 5 "Tax Receivable Agreements"), the Acquisition of KCG and the ITG Acquisition, differences in the valuation of financial assets and liabilities, and other temporary differences arising from the deductibility of compensation, depreciation, and other expenses in different time periods for book and income tax return purposes. There are no expiration dates on the deferred tax assets. The provisions of ASC 740 require that carrying amounts of deferred tax assets be reduced by a valuation allowance if, based on the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Accordingly, the need to establish valuation allowances for deferred tax assets is assessed periodically with appropriate consideration given to all positive and negative evidence related to the realization of the deferred tax assets. At September 30, 2021 and December 31, 2020, the Company did not have any U.S. federal net operating loss carryforwards and therefore the Company did not record a deferred tax asset related to federal net operating loss carryforwards. At September 30, 2021 and December 31, 2020, the Company recorded deferred income taxes related to state and local net operating losses of $0.4 million. These net operating losses will begin to expire in 2039. The Company did not record a valuation allowance against this deferred tax asset. As a result of the ITG Acquisition, the Company had non-U.S. net operating losses at September 30, 2021 and December 31, 2020 of $71.6 million and $75.1 million, respectively, and recorded a related deferred tax asset of $14.3 million and $15.2 million, respectively. A valuation allowance of $14.3 million and $15.1 million was recorded against this deferred tax asset at September 30, 2021 and December 31, 2020, respectively, as it is more likely than not that a portion of this deferred tax asset will not be realized. As a result of the Acquisition of KCG, the Company had non-U.S. net operating losses at September 30, 2021 and December 31, 2020 of $239.3 million and $239.0 million, respectively, and recorded a related deferred tax asset of $44.9 million and $44.9 million, respectively. A full valuation allowance was also recorded against this deferred tax asset at September 30, 2021 and December 31, 2020 as it is more likely than not that this deferred tax asset will not be realized. No valuation allowance against the remaining deferred taxes was recorded as of September 30, 2021 and December 31, 2020 because it is more likely than not that these deferred tax assets will be fully realized. The Company is subject to taxation in U.S. federal, state, local and foreign jurisdictions. As of September 30, 2021, the Company’s tax years for 2015 through 2019 and 2017 through 2019 were subject to examination by U.S. and non-U.S. tax authorities, respectively. As a result of the ITG Acquisition and the Acquisition of KCG, the Company assumed any ITG and KCG tax exposures. In addition, the Company is subject to state and local income tax examinations in various jurisdictions for the tax years 2013 through 2019. The final outcome of these examinations is not yet determinable. However, the Company anticipates that adjustments related to these examinations, if any, will not result in a material change to its financial condition, results of operations and cash flows. The Company’s policy for recording interest and penalties associated with audits is to record such items as a component of income or loss before income taxes and noncontrolling interest. Penalties, if any, are recorded in Operations and administrative expense and interest received or paid is recorded in Other, net or Operations and administrative expense in the Condensed Consolidated Statements of Comprehensive Income, respectively. The Company had $8.3 million of unrecognized tax benefits as of September 30, 2021, all of which would affect the Company’s effective tax rate if recognized. The Company has determined that there are no uncertain tax positions that would have a material impact on the Company’s financial position as of September 30, 2021. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Legal Proceedings In the ordinary course of business, the nature of the Company’s business subjects it to claims, lawsuits, regulatory examinations or investigations and other proceedings. The Company and its subsidiaries are subject to several of these matters at the present time. Given the inherent difficulty of predicting the outcome of litigation and regulatory matters, particularly in regulatory examinations or investigations or other proceedings in which substantial or indeterminate judgments, settlements, disgorgements, restitution, penalties, injunctions, damages or fines are sought, or where such matters are in the early stages, the Company cannot estimate losses or ranges of losses for such matters where there is only a reasonable possibility that a loss may be incurred. In addition, there are numerous factors that result in a greater degree of complexity in class-action lawsuits as compared to other types of litigation. There can be no assurance that these legal proceedings will not have a material adverse effect on the Company’s results of operations in any future period, and a material judgment, fine or sanction could have a material adverse impact on the Company’s financial condition, results of operations and cash flows. However, it is the opinion of management, after consultation with legal counsel that, based on information currently available, the ultimate outcome of these matters will not have a material adverse impact on the business, financial condition or operating results of the Company, although they might be material to the operating results for any particular reporting period. The Company carries directors’ and officers’ liability insurance coverage and other insurance coverage for potential claims, including securities actions, against the Company and its respective directors and officers. On November 30, 2020, the Company was named as a defendant in In re United States Oil Fund, LP Securities Litigation , No. 20-cv-4740. The consolidated amended complaint was filed in federal district court in New York on behalf of a putative class, and asserts claims against the Company and numerous other financial institutions under Section 11 of the Securities Act of 1933 in connection with trading in United States Oil Fund, LP, a crude oil ETF. The complaint also names the ETF, its sponsor, and related individuals as defendants. The complaint did not specify the amount of alleged damages. Defendants moved to dismiss the consolidated amended complaint on January 29, 2021 and plaintiffs subsequently filed its opposition to the motion on March 30, 2021. The Company believes that the claims are without merit and is defending itself vigorously. On August 31, 2021, the Company was named as a defendant in Alers v. Robinhood Financial, LLC et al No. 21-cv-61848. The complaint was filed in federal district court in Florida on behalf of a putative class, and asserts claims against the Company and numerous other financial institutions alleging a breach of fiduciary duty by Robinhood and aiding and abetting thereof by the Company and other market making firms. The complaint did not specify the amount of alleged damages. The Company believes that the claims are without merit and is defending itself vigorously. In October 2021, Robinhood and the market-maker defendants moved to transfer the case to the Northern District of California, or in the alternative, to dismiss the complaint. Other Legal and Regulatory Matters The Company owns subsidiaries including regulated entities that are subject to extensive oversight under federal, state and applicable international laws as well as self-regulatory organization (“SRO”) rules. Changes in market structure and the need to remain competitive require constant changes to the Company's systems, order routing and order handling procedures. The Company makes these changes while continuously endeavoring to comply with many complex laws and rules. Compliance, surveillance and trading issues common in the securities industry are monitored by, reported to, and/or reviewed in the ordinary course of business by the Company's regulators in the U.S. and abroad. As a major order flow execution destination, the Company is named from time to time in, or is asked to respond to a number of regulatory matters brought by U.S. regulators, foreign regulators, SROs, as well as actions brought by private plaintiffs, which arise from its business activities. There has recently been an increased focus by regulators on Anti-Money Laundering and sanctions compliance by broker-dealers and similar entities, as well as an enhanced interest on suspicious activity reporting and transactions involving microcap and low-priced securities. In addition, there has been an increased focus by Congress, federal and state regulators, SROs and the media on market structure issues, and in particular, the retail trading environment in the U.S. and relationships between retail broker-dealers and market making firms, high frequency trading, best execution, internalization, alternative trading system (“ATS”) manner of operations, market fragmentation and complexity, colocation, cybersecurity, access to market data feeds and remuneration arrangements, such as payment for order flow and other payment and rebate structures and arrangements. From time to time, the Company is the subject of requests for information and documents from the SEC, the Financial Industry Regulatory Authority ("FINRA"), state attorneys general, and other regulators and governmental authorities. It is the Company's practice to cooperate and comply with the requests for information and documents. The Company is currently the subject of various regulatory reviews and investigations by state, federal and foreign regulators and SROs, including the SEC and FINRA. In some instances, these matters may result in a disciplinary action and/or a civil or administrative action. Representations and Warranties; Indemnification Arrangements In the normal course of its operations, the Company enters into contracts that contain a variety of representations and warranties in addition to indemnification obligations, including indemnification obligations in connection with the Acquisition of KCG and the ITG Acquisition. The Company's maximum exposure under these arrangements is currently unknown, as any such exposure could relate to claims not yet brought or events which have not yet occurred. For example, in November 2013, KCG sold Urban Financial of America, LLC (“Urban”), the reverse mortgage origination and securitization business previously owned by Knight Capital Group, Inc., to an investor group now known as Finance of America Reverse, LLC (“FAR”). Pursuant to the terms of the Stock Purchase Agreement between KCG and FAR, Virtu has certain continuing obligations related to KCG's prior ownership of Urban and has been and, in the future may be, advised by FAR of potential claims thereunder. Consistent with standard business practices in the normal course of business, the Company enters into contracts that contain a variety of representations and warranties and general indemnifications. The Company has also provided general indemnifications to its managers, officers, directors, employees, and agents against expenses, legal fees, judgments, fines, settlements, and other amounts actually and reasonably incurred by such persons under certain circumstances as more fully |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company primarily enters into lessee arrangements for corporate office space, data centers, and technology equipment. For more information on lease accounting, see Note 2 "Summary of Significant Accounting Policies" and Note 17 "Leases" to the Consolidated Financial Statements of the Company's 2020 Annual Report on Form 10-K. Lease assets and liabilities are summarized as follows: (in thousands) Financial Statement Location September 30, 2021 December 31, 2020 Operating leases Operating lease right-of-use assets Operating lease right-of-use assets $ 247,531 $ 268,864 Operating lease liabilities Operating lease liabilities 292,967 315,340 Finance leases Property and equipment, at cost Property, equipment, and capitalized software, net 18,479 36,093 Accumulated depreciation Property, equipment, and capitalized software, net (10,902) (24,585) Finance lease liabilities Accounts payable, accrued expenses, and other liabilities 7,705 11,687 Weighted average remaining lease term and discount rate are as follows: September 30, 2021 December 31, 2020 Weighted average remaining lease term Operating leases 6.68 years 6.9 years Finance leases 1.74 years 2.0 years Weighted average discount rate Operating leases 5.49 % 5.67 % Finance leases 2.41 % 3.13 % The components of lease expense are as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Operating lease cost: Fixed $ 18,994 $ 18,521 $ 56,772 $ 55,333 Variable 1,913 2,393 5,144 6,614 Impairment of ROU Asset — — 1,198 — Total Operating lease cost $ 20,907 $ 20,914 $ 63,114 $ 61,947 Sublease income 4,537 4,399 13,404 11,994 Finance lease cost: Amortization of ROU Asset $ 1,460 $ 2,668 $ 5,024 $ 8,838 Interest on lease liabilities 50 97 183 339 Total Finance lease cost $ 1,510 $ 2,765 $ 5,207 $ 9,177 Future minimum lease payments under operating and finance leases with non-cancelable lease terms, as of September 30, 2021, are as follows: (in thousands) Operating Leases Finance Leases 2021 $ 17,078 $ 1,468 2022 69,887 4,441 2023 68,128 1,818 2024 39,614 247 2025 31,859 — 2026 and thereafter 127,472 — Total lease payments $ 354,038 $ 7,974 Less imputed interest (61,071) (269) Total lease liability $ 292,967 $ 7,705 |
Leases | Leases The Company primarily enters into lessee arrangements for corporate office space, data centers, and technology equipment. For more information on lease accounting, see Note 2 "Summary of Significant Accounting Policies" and Note 17 "Leases" to the Consolidated Financial Statements of the Company's 2020 Annual Report on Form 10-K. Lease assets and liabilities are summarized as follows: (in thousands) Financial Statement Location September 30, 2021 December 31, 2020 Operating leases Operating lease right-of-use assets Operating lease right-of-use assets $ 247,531 $ 268,864 Operating lease liabilities Operating lease liabilities 292,967 315,340 Finance leases Property and equipment, at cost Property, equipment, and capitalized software, net 18,479 36,093 Accumulated depreciation Property, equipment, and capitalized software, net (10,902) (24,585) Finance lease liabilities Accounts payable, accrued expenses, and other liabilities 7,705 11,687 Weighted average remaining lease term and discount rate are as follows: September 30, 2021 December 31, 2020 Weighted average remaining lease term Operating leases 6.68 years 6.9 years Finance leases 1.74 years 2.0 years Weighted average discount rate Operating leases 5.49 % 5.67 % Finance leases 2.41 % 3.13 % The components of lease expense are as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Operating lease cost: Fixed $ 18,994 $ 18,521 $ 56,772 $ 55,333 Variable 1,913 2,393 5,144 6,614 Impairment of ROU Asset — — 1,198 — Total Operating lease cost $ 20,907 $ 20,914 $ 63,114 $ 61,947 Sublease income 4,537 4,399 13,404 11,994 Finance lease cost: Amortization of ROU Asset $ 1,460 $ 2,668 $ 5,024 $ 8,838 Interest on lease liabilities 50 97 183 339 Total Finance lease cost $ 1,510 $ 2,765 $ 5,207 $ 9,177 Future minimum lease payments under operating and finance leases with non-cancelable lease terms, as of September 30, 2021, are as follows: (in thousands) Operating Leases Finance Leases 2021 $ 17,078 $ 1,468 2022 69,887 4,441 2023 68,128 1,818 2024 39,614 247 2025 31,859 — 2026 and thereafter 127,472 — Total lease payments $ 354,038 $ 7,974 Less imputed interest (61,071) (269) Total lease liability $ 292,967 $ 7,705 |
Cash
Cash | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Cash | Cash The following table provides a reconciliation of cash and cash equivalents together with restricted or segregated cash as reported within the Condensed Consolidated Statements of Financial Condition to the sum of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows. (in thousands) September 30, 2021 December 31, 2020 Cash and cash equivalents $ 683,836 $ 889,559 Cash restricted or segregated under regulations and other 70,477 117,446 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 754,313 $ 1,007,005 |
Capital Structure
Capital Structure | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Capital Structure | Capital Structure The Company has four classes of authorized common stock. The Class A Common Stock and the Class C Common Stock have one vote per share. The Class B Common Stock and the Class D Common Stock have 10 votes per share. Shares of the Company’s common stock generally vote together as a single class on all matters submitted to a vote of the Company’s stockholders. The Founder Member controls approximately 83.0% of the combined voting power of our common stock as a result of its ownership of our Class C and Class D Common Stock. The Company holds approximately a 62.6% interest in Virtu Financial at September 30, 2021. During the period prior to the Reorganization Transactions and IPO, Class A-2 profits interests and Class B interests in Virtu Financial were issued to Employee Holdco (as defined below) on behalf of certain key employees and stakeholders. In connection with the Reorganization Transactions, all Class A-2 profits interests and Class B interests were reclassified into Virtu Financial Units. As of September 30, 2021 and December 31, 2020, there were 4,795,839 and 5,259,713 Virtu Financial Units outstanding held by Employee Holdco (as defined below), respectively, and 463,874 and 2,420,239 of such Virtu Financial Units and corresponding Class C Common Stock were exchanged into Class A Common Stock, forfeited or repurchased during the nine months ended September 30, 2021 and 2020, respectively. Amended and Restated 2015 Management Incentive Plan The Company’s Board of Directors and stockholders adopted the 2015 Management Incentive Plan, which became effective upon consummation of the IPO, and was subsequently amended and restated following receipt of approval from the Company’s stockholders on June 30, 2017. The Amended and Restated 2015 Management Incentive Plan provides for the grant of stock options, restricted stock units, and other awards based on an aggregate of 21,000,000 shares of Class A Common Stock, subject to additional sublimits, including limits on the total option grant to any one participant in a single year and the total performance award to any one participant in a single year. On November 13, 2020, the Company amended its form award agreement for the issuance of RSUs to provide for the continued vesting of outstanding RSU awards upon the occurrence of a qualified retirement (the "RSU Amendment"). A qualified retirement generally means a voluntary resignation by the participant (i) after five years of service, (ii) the participant attaining the age of 50 and (iii) the sum of the participant's age and service at the time of termination equaling or exceeding 65. Continued vesting is subject to the participant entering into a 2 year non-compete. The RSU Amendment was authorized and approved by the Compensation Committee of the Company's Board of Directors. As a result of the RSU Amendment, currently issued and outstanding RSUs held by the Company's employees, including its executive officers, shall be deemed to be subject to the amended terms of the form award agreement, and any future RSU awards shall also be governed by such amended terms. Amended and Restated Investment Technology Group, Inc. 2007 Omnibus Equity Compensation Plan On the ITG Closing Date, the Company assumed the Amended and Restated ITG 2007 Equity Plan and the Assumed Awards. As of the ITG Closing Date, the aggregate number of shares of Class A Common Stock subject to such Assumed Awards was 2,497,028 and the aggregate number of shares of Class A Common Stock that remained issuable pursuant to the Amended and Restated ITG 2007 Equity Plan was 1,230,406. Share Repurchase Program On May 4, 2021, the Company's Board of Directors authorized the expansion of the Company's share repurchase program, increasing the total authorized amount by $300 million to $470 million in Class A Common Stock and Virtu Financial Units and extending the duration of the program through May 4, 2022. The share repurchase program authorizes the Company to repurchase shares from time to time in open market transactions, privately negotiated transactions or by other means. Repurchases are also permitted to be made under Rule 10b5-1 plans. The timing and amount of repurchase transactions are determined by the Company's management based on its evaluation of market conditions, share price, cash sources, legal requirements and other factors. From the inception of the program through September 30, 2021, the Company repurchased approximately 12.5 million shares of Class A Common Stock and Virtu Financial Units for approximately $337.5 million. As of September 30, 2021, the Company has approximately $132.5 million remaining capacity for future purchases of shares of Class A Common Stock and Virtu Financial Units under the program. Employee Exchanges During the nine months ended September 30, 2021 and 2020, pursuant to the exchange agreement by and among the Company, Virtu Financial and holders of Virtu Financial Units, certain current and former employees elected to exchange 405,272 and 2,420,239 units, respectively in Virtu Financial held directly or on their behalf by Virtu Employee Holdco LLC (“Employee Holdco”) on a one-for-one basis for shares of Class A Common Stock. Warrant Issuance On March 20, 2020, in connection with and in consideration of the Founder Member’s commitments under the Founder Member Loan Facility (as described in Note 9 "Borrowings"), the Company delivered to the Founder Member a warrant (the “Warrant”) to purchase shares of the Company’s Class A Common Stock. Pursuant to the Warrant, the Founder Member may purchase up to 3,000,000 shares of Class A Common Stock. If at any time during the term of the Founder Member Loan Facility, the Founder Member Loans equal to or greater than $100 million had remained outstanding for a certain period of time specified in the Warrant, the number of shares would have increased to 10,000,000. The Founder Member Loan Facility Term expired on September 20, 2020 without the Company having borrowed any Founder Member Loans thereunder (as described in Note 9 "Borrowings"), and as a result no such increase in the number of shares which may be purchased has occurred or will occur pursuant to the terms of the Warrant. The exercise price per share of the Class A Common Stock issuable pursuant to the Warrant is $22.98, which in accordance with the terms of the Warrant, is equal to the average of the volume weighted average prices of the Class A Common Stock for the ten (10) trading days following May 7, 2020, the date on which the Company publicly announced its earnings results for the first quarter of 2020. The Warrant may be exercised to purchase up to 3,000,000 shares of the Company's Class A Common Stock on any date after May 22, 2020 up to and including January 15, 2022. The Warrant and Class A Common Stock issuable pursuant to the Warrant were offered, and will be issued and sold, in reliance on the exemption from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), set forth under Section 4(a)(2) of the Securities Act relating to sales by an issuer not involving any public offering. The fair value of the Warrant was determined using a Black-Scholes-Merton model, and was recorded as a debt issuance cost within Other Assets on the Condensed Consolidated Statements of Financial Condition and as an increase to Additional paid-in capital on the Condensed Consolidated Statements of Changes in Equity. The balance was amortized on a straight-line basis from March 20, 2020 through September 20, 2020, the date on which the Founder Member Loan Facility expired, and recorded as expense within Debt issue cost related to debt refinancing, prepayment and commitment fees in the Condensed Consolidated Statements of Comprehensive Income. Accumulated Other Comprehensive Income (Loss) The following table presents the changes in Other Comprehensive Income (Loss) for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, 2021 (in thousands) AOCI Beginning Balance Amounts recorded Amounts reclassified from AOCI to income AOCI Ending Balance Net change in unrealized cash flow hedges gains (losses) (1) $ (24,952) $ (1,612) $ 3,803 $ (22,761) Foreign exchange translation adjustment 5,835 (4,912) — 923 Total $ (19,117) $ (6,524) $ 3,803 $ (21,838) (1) Amounts reclassified from AOCI to income are included within Financing interest expense on long-term borrowings on the Condensed Consolidated Statements of Comprehensive Income. As of September 30, 2021, the Company expects approximately $15.0 million to be reclassified from AOCI into earnings over the next 12 months. The timing of the reclassification is based on the interest payment schedule of the long-term borrowings. Three Months Ended September 30, 2020 (in thousands) AOCI Beginning Balance Amounts recorded Amounts reclassified from AOCI to income AOCI Ending Balance Net change in unrealized cash flow hedges gains (losses) $ (36,710) $ (1,797) $ 1,948 $ (36,559) Foreign exchange translation adjustment (2,857) 4,213 — 1,356 Total $ (39,567) $ 2,416 $ 1,948 $ (35,203) Nine Months Ended September 30, 2021 (in thousands) AOCI Beginning Balance Amounts recorded Amounts reclassified from AOCI to income AOCI Ending Balance Net change in unrealized cash flow hedges gains (losses) (1) $ (33,444) $ (83) $ 10,766 $ (22,761) Foreign exchange translation adjustment 7,957 (7,034) — 923 Total $ (25,487) $ (7,117) $ 10,766 $ (21,838) (1) Amounts reclassified from AOCI to income are included within Financing interest expense on long-term borrowings on the Consolidated Statements of Comprehensive Income. As of September 30, 2021, the Company expects approximately $15.0 million to be reclassified from AOCI into earnings over the next 12 months. The timing of the reclassification is based on the interest payment schedule of the long-term borrowings. Nine Months Ended September 30, 2020 (in thousands) AOCI Beginning Balance Amounts recorded Amounts reclassified from AOCI to income AOCI Ending Balance Net change in unrealized cash flow hedges gains (losses) $ — $ (42,405) $ 5,846 $ (36,559) Foreign exchange translation adjustment (647) 2,003 — 1,356 Total $ (647) $ (40,402) $ 5,846 $ (35,203) (1) Amounts reclassified from AOCI to income are included within Financing interest expense on long-term borrowings on the Consolidated Statements of Comprehensive Income. |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based CompensationPursuant to the Amended and Restated 2015 Management Incentive Plan as described in Note 18 "Capital Structure", and in connection with the IPO, non-qualified stock options to purchase shares of Class A Common Stock were granted, each of which vests in equal annual installments over a period of four years from grant date and expires not later than 10 years from the date of grant. The following table summarizes activity related to stock options for the nine months ended September 30, 2021 and 2020: Options Outstanding Options Exercisable Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Number of Options Weighted Average Exercise Price At December 31, 2019 3,233,779 $ 18.74 5.24 3,233,779 $ 18.74 Granted — — — — — Exercised (807,627) 17.96 — (807,627) 17.96 Forfeited or expired — — — — — At September 30, 2020 2,426,152 $ 19.00 4.49 2,426,152 $ 19.00 At December 31, 2020 2,324,152 $ 19.00 4.24 2,324,152 $ 19.00 Granted — — — — — Exercised (446,997) 19.00 — (446,997) 19.00 Forfeited or expired — — — — — At September 30, 2021 1,877,155 $ 19.00 3.49 1,877,155 $ 19.00 The expected life was determined based on an average of vesting and contractual period. The risk-free interest rate was determined based on the yields available on U.S. Treasury zero-coupon issues. The expected stock price volatility was determined based on historical volatilities of comparable companies. The expected dividend yield was determined based on estimated future dividend payments divided by the IPO stock price. The stock options to purchase shares of Class A Common Stock were fully vested in 2019. Amended and Restated Investment Technology Group, Inc. 2007 Omnibus Equity Compensation Plan On the ITG Closing Date, the Company assumed the Amended and Restated ITG 2007 Equity Plan and the Assumed Awards. The Assumed Awards are subject to the same terms and conditions that were applicable to them under the Amended and Restated ITG 2007 Equity Plan, except that (i) the Assumed Awards relate to shares of the Company’s Class A Common Stock, (ii) the number of shares of Class A Common Stock subject to the Assumed Awards was the result of an adjustment based upon an Exchange Ratio (as defined in the ITG Merger Agreement) and (iii) the performance share unit awards were converted into service-based vesting restricted stock unit awards that were no longer subject to any performance based vesting conditions. As of the ITG Closing Date, the aggregate number of shares of Class A Common Stock subject to such Assumed Awards was 2,497,028 and the aggregate number of shares of Class A Common Stock that remained issuable pursuant to the Amended and Restated ITG 2007 Equity Plan was 1,230,406. The Company filed a Registration Statement on Form S-8 on the ITG Closing Date to register such shares of Class A Common Stock. Class A Common Stock, Restricted Stock Units and Restricted Stock Awards Pursuant to the Amended and Restated 2015 Management Incentive Plan as described in Note 18 "Capital Structure", subsequent to the IPO, shares of immediately vested Class A Common Stock, RSUs and RSAs were granted, with RSUs and RSAs vesting over a period of up to 4 years. The fair value of the Class A Common Stock and RSUs was determined based on a volume weighted average price and the expense is recognized on a straight-line basis over the vesting period. The fair value of the RSAs was determined based on the closing price as of the date of grant and the expense is recognized from the date that achievement of the performance target becomes probable through the remainder of the vesting period. Performance targets are based on the Company's adjusted EBITDA for certain future periods. For the nine months ended September 30, 2021 and 2020, respectively, there were 633,938 and 967,526 shares of immediately vested Class A Common Stock granted as part of year-end compensation. In addition, the Company accrued compensation expense of $6.3 million for the three months ended September 30, 2021 and reduced accrued compensation expense by $11.4 million for the three months ended September 30, 2020, and accrued compensation expense of $17.7 million and $14.4 million for the nine months ended September 30, 2021 and 2020, respectively, related to immediately vested Class A Common Stock expected to be awarded as part of year-end incentive compensation, which was included in Employee compensation and payroll taxes on the Condensed Consolidated Statements of Comprehensive Income and Accounts payable, accrued expenses and other liabilities on the Condensed Consolidated Statements of Financial Condition. The following table summarizes activity related to RSUs (including the Assumed Awards) and RSAs for the nine months ended September 30, 2021 and 2020: Number of RSUs and RSAs Weighted At December 31, 2019 2,993,489 $ 24.10 Granted 3,300,894 17.15 Forfeited (391,223) 17.90 Vested (2,124,843) 20.40 At September 30, 2020 3,778,317 $ 20.77 At December 31, 2020 3,393,084 $ 21.35 Granted (1) 2,442,953 27.06 Forfeited (191,296) 22.97 Vested (2,032,477) 23.27 At September 30, 2021 3,612,264 $ 24.05 (1) Excluded in the number of RSUs and RSAs are 350,000 participating RSAs where the grant date has not been achieved because the performance conditions have not been met. The Company recognized $6.7 million and $9.0 million for the three months ended September 30, 2021 and 2020 and $20.5 million and $25.8 million for the nine months ended September 30, 2021 and 2020, respectively, of compensation expense in relation to RSUs. As of September 30, 2021 and December 31, 2020, total unrecognized share-based compensation expense related to unvested RSUs was $51.4 million and $37.1 million, respectively, and this amount is to be recognized over a weighted average period of 1.1 years and 1.0 year, respectively. Awards in which the specific performance conditions have not been met are not included in unrecognized share-based compensation expense. On November 13, 2020, the Company adopted the Virtu Financial, Inc. Deferred Compensation Plan (the "DCP"). The DCP permits eligible executive officers and other employees to defer cash or equity based compensation beginning in the calendar year ending December 31, 2021, subject to certain limitations and restrictions. Deferrals may also be directed to notional investments in certain of the employee investment opportunities. No amounts have been recognized as compensation cost under the DCP as of September 30, 2021. |
Regulatory Requirement
Regulatory Requirement | 9 Months Ended |
Sep. 30, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Requirement | Regulatory Requirement U.S. Subsidiary The Company's U.S. broker-dealer subsidiary, VAL, is subject to the SEC Uniform Net Capital Rule 15c3-1, which requires the maintenance of minimum net capital as detailed in the table below. Pursuant to New York Stock Exchange ("NYSE") rules, VAL was also required to maintain $1.0 million of capital in connection with the operation of its designated market maker (“DMM”) business as of September 30, 2021. The required amount is determined under the exchange rules as the greater of (i) $1 million or (ii) $75,000 for every 0.1% of NYSE transaction dollar volume in each of the securities for which the Company is registered as the DMM. VAL's regulatory capital and regulatory capital requirements as of September 30, 2021 was as follows: (in thousands) Regulatory Capital Regulatory Capital Requirement Excess Regulatory Capital Virtu Americas LLC $ 484,482 $ 1,725 $ 482,757 As of September 30, 2021, VAL had $60.9 million of cash in special reserve bank accounts for the benefit of customers pursuant to SEC Rule 15c3-3, Computation for Determination of Reserve Requirements, and $8.8 million of cash in reserve bank accounts for the benefit of proprietary accounts of brokers. The balances are included within Cash restricted or segregated under regulations and other on the Condensed Consolidated Statements of Financial Condition. VAL's regulatory capital and regulatory capital requirements as of December 31, 2020 was as follows: (in thousands) Regulatory Capital Regulatory Capital Requirement Excess Regulatory Capital Virtu Americas LLC $ 621,253 $ 2,917 $ 618,336 As of December 31, 2020, VAL had $96.2 million of cash in special reserve bank accounts for the benefit of customers pursuant to SEC Rule 15c3-3, Computation for Determination of Reserve Requirements, and $20.4 million of cash in reserve bank accounts for the benefit of proprietary accounts of brokers. Foreign Subsidiaries The Company’s foreign subsidiaries are subject to regulatory capital requirements set by local regulatory bodies, including the Investment Industry Regulatory Organization of Canada (“IIROC”), the Central Bank of Ireland ("CBI"), the Financial Conduct Authority ("FCA") in the United Kingdom, the Australian Securities and Investments Commission ("ASIC"), the Securities and Futures Commission in Hong Kong ("SFC"), and the Monetary Authority of Singapore ("MAS"). The regulatory net capital balances and regulatory capital requirements applicable to the Company's foreign subsidiaries as of September 30, 2021 were as follows: (in thousands) Regulatory Capital Regulatory Capital Requirement Excess Regulatory Capital Canada Virtu ITG Canada Corp $ 16,911 $ 197 $ 16,714 Virtu Financial Canada ULC 200 197 3 Ireland Virtu ITG Europe Limited (1) 78,066 32,636 45,430 Virtu Financial Ireland Limited (1) 109,229 58,083 51,146 United Kingdom Virtu ITG UK Limited 1,057 846 211 Asia Pacific Virtu ITG Australia Limited 30,717 8,776 21,941 Virtu ITG Hong Kong Limited 2,902 513 2,389 Virtu ITG Singapore Pte Limited 845 74 771 (1) Preliminary As of September 30, 2021, Virtu ITG Europe Limited and Virtu ITG Canada Corp had $0.2 million and $0.4 million, respectively, of segregated funds on deposit for trade clearing and settlement activity, and Virtu ITG Hong Kong Ltd. had $30 thousand of segregated balances under a collateral account control agreement for the benefit of certain customers. The regulatory net capital balances and regulatory capital requirements applicable to the Company's foreign subsidiaries as of December 31, 2020 were as follows: (in thousands) Regulatory Capital Regulatory Capital Requirement Excess Regulatory Capital Canada Virtu ITG Canada Corp $ 12,944 $ 196 $ 12,748 Virtu Financial Canada ULC 2,486 196 2,290 Ireland Virtu ITG Europe Limited 57,459 32,106 25,353 Virtu Financial Ireland Limited 94,528 41,038 53,490 United Kingdom Virtu ITG UK Limited 1,290 910 380 Asia Pacific Virtu ITG Australia Limited 30,606 12,729 17,877 Virtu ITG Hong Kong Limited 4,290 625 3,665 Virtu ITG Singapore Pte Limited 796 76 720 As of December 31, 2020, Virtu ITG Europe Limited and Virtu ITG Canada Corp had $0.2 million and $0.4 million, respectively, of funds on deposit for trade clearing and settlement activity, and Virtu ITG Hong Kong Ltd had $30 thousand of segregated balances under a collateral account control agreement for the benefit of certain customers. |
Geographic Information and Busi
Geographic Information and Business Segments | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Geographic Information and Business Segments | Geographic Information and Business Segments The Company operates its business in the U.S. and internationally, primarily in Europe, Asia and Canada. Significant transactions and balances between geographic regions occur primarily as a result of certain of the Company’s subsidiaries incurring operating expenses such as employee compensation, communications and data processing and other overhead costs, for the purpose of providing execution, clearing and other support services to affiliates. Charges for transactions between regions are designed to approximate full costs. Intra-region income and expenses and related balances have been eliminated in the geographic information presented below to accurately reflect the external business conducted in each geographical region. The revenues are attributed to countries based on the locations of the subsidiaries. The following table presents total revenues by geographic area for the three and nine months ended September 30, 2021 and 2020 : Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Revenues: United States $ 433,013 $ 484,594 $ 1,678,650 $ 2,045,330 Ireland 55,137 61,320 242,614 233,783 Singapore 30,696 26,630 102,965 140,492 Canada 13,955 71,268 43,924 103,331 Australia 9,982 10,107 31,868 32,186 United Kingdom — 964 1,745 3,944 Others 1,561 1,229 4,115 3,569 Total revenues $ 544,344 $ 656,112 $ 2,105,881 $ 2,562,635 The Company has two operating segments: (i) Market Making and (ii) Execution Services; and one non-operating segment: Corporate. The Market Making segment principally consists of market making in the cash, futures and options markets across global equities, fixed income, currencies and commodities. As a market maker, the Company commits capital on a principal basis by offering to buy securities from, or sell securities to, broker-dealers, banks and institutions. The Company engages in principal trading in the Market Making segment direct to clients as well as in a supplemental capacity on exchanges, Electronic Communications Networks ("ECNs") and ATSs. The Company is an active participant on all major global equity and futures exchanges and also trades on substantially all domestic electronic options exchanges. As a complement to electronic market making, the cash trading business handles specialized orders and also transacts on the OTC Link ATS operated by OTC Markets Group Inc. The Execution Services segment comprises client-based trading and trading venues, offering execution services in global equities, options, futures and fixed income on behalf of institutions, banks and broker-dealers. The Company earns commissions and commission equivalents as an agent on behalf of clients as well as between principals to transactions; in addition, the Company will commit capital on behalf of clients as needed. Client-based, execution-only trading in the segment is done primarily through a variety of access points including: (i) algorithmic trading and order routing in global equities and options; (ii) institutional sales traders who offer portfolio trading and single stock sales trading which provides execution expertise for program, block and riskless principal trades in global equities and ETFs; and (iii) matching of client conditional orders in POSIT Alert and client orders in the Company's ATSs, including Virtu MatchIt, and POSIT. The Execution Services segment also includes revenues derived from providing (a) proprietary risk management and trading infrastructure technology to select third parties for a service fee, (b) workflow technology, the Company’s integrated, broker-neutral trading tools delivered across the globe including trade order and execution management and order management software applications and network connectivity and (c) trading analytics, including (1) tools enabling portfolio managers and traders to improve pre-trade, real-time and post-trade execution performance, (2) portfolio construction and optimization decisions and (3) securities valuation. The segment also includes the results of the Company's capital markets business, in which the Company act as an agent for issuers in connection with at-the-market offerings and buyback programs. The Corporate segment contains the Company's investments, principally in strategic trading-related opportunities and maintains corporate overhead expenses and all other income and expenses that are not attributable to the Company's other segments. Management evaluates the performance of its segments on a pre-tax basis. Segment assets and liabilities are not used for evaluating segment performance or in deciding how to allocate resources to segments. The Company’s total revenues and income before income taxes and noncontrolling interest (“Pre-tax earnings”) by segment for the three months ended September 30, 2021 and 2020 and are summarized in the following table: (in thousands) Market Execution Corporate Consolidated 2021: Total revenue $ 409,290 $ 132,549 $ 2,505 $ 544,344 Income before income taxes and noncontrolling interest 135,875 7,532 1,692 145,099 2020: Total revenue 474,598 182,680 (1,166) 656,112 Income (loss) before income taxes and noncontrolling interest 161,732 102,029 (11,246) 252,515 The Company's Pre-tax earnings by segment for the nine months ended September 30, 2021 and 2020 are summarized in the following table: (in thousands) Market Making Execution Services Corporate Consolidated Total 2021 Total revenue $ 1,635,555 $ 459,918 $ 10,408 $ 2,105,881 Income (loss) before income taxes and noncontrolling interest 713,723 51,941 4,223 769,887 2020 Total revenue 2,064,300 500,621 (2,286) 2,562,635 Income (loss) before income taxes and noncontrolling interest 1,010,871 137,879 (25,478) 1,123,272 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company incurs expenses and maintains balances with its affiliates in the ordinary course of business. As of September 30, 2021, and December 31, 2020 the Company had net payables to its affiliates of $0.8 million and net receivables from its affiliates of $2.3 million, respectively. The Company has held a minority interest in JNX since 2016 (see Note 10 "Financial Assets and Liabilities"). The Company pays exchange fees to JNX for the trading activities conducted on its proprietary trading system. The Company paid $2.9 million and $4.1 million for the three months ended September 30, 2021 and 2020, respectively, and $9.1 million and $13.8 million for the nine months ended September 30, 2021 and 2020, respectively, to JNX for these trading activities. The Company makes payments to two JVs (see Note 12 "Variable Interest Entities") to fund the construction of the microwave communication networks, and to purchase microwave communication networks, which are recorded within Communications and data processing on the Condensed Consolidated Statements of Comprehensive Income. The Company made payments of $10.5 million and $4.7 million the three months ended September 30, 2021 and 2020, respectively, and $19.9 million and $14.0 million for the nine months ended September 30, 2021 and 2020, respectively, to these JVs. The Company purchases network connections services from affiliates of Level 3 Communications (“Level 3”). Temasek and its affiliates have a significant ownership interest in Level 3. The Company paid $0.5 million and $0.4 million for the three months ended September 30, 2021 and 2020, respectively, and $1.2 million for both the nine months ended September 30, 2021 and 2020, respectively, to Level 3 for these services. The Company makes commission-sharing arrangement ("CSA") payments to affiliates of DBS Group Holdings ("DBS"). Temasek and its affiliates have a significant ownership interest in DBS. Payments for the three and nine months ended September 30, 2021 were immaterial. The Company made payments of $13.0 thousand and $0.2 million for the three and nine months ended September 30, 2020, respectively. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events for adjustment to or disclosure in its condensed consolidated financial statements through the date of this report, and has not identified any recordable or disclosable events, not otherwise reported in these condensed consolidated financial statements or the notes thereto, except for the following: On November 3, 2021, the Company’s Board of Directors declared a dividend of $0.24 per share of Class A Common Stock and Class B Common Stock and per participating Restricted Stock Unit and Restricted Stock Award that will be paid on December 15, 2021 to holders of record as of December 1, 2021. On November 3, 2021, the Company's Board of Directors authorized the expansion of the Company's current share repurchase program, increasing the total authorized amount by $750 million to $1,220 million and extended the duration through November 3, 2023. Since the inception of the program through November 3, 2021, the company repurchased approximately 13.4 million shares of Class A Common Stock and Virtu Financial Units for approximately $361.4 million. As of November 3, 2021, the Company has approximately $858.6 million remaining capacity for future purchase of shares of Class A Common Stock and Virtu Financial Units under the program. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Accounting Pronouncements, Recently Adopted and Accounting Pronouncements, Not Yet Adopted | Accounting Pronouncements, Recently Adopted Income Taxes - In December 2019, the FASB issued Accounting Standards Update ("ASU") 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The ASU removes certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences. The ASU also amends other aspects of the guidance relating to the accounting for franchise taxes, enacted changes in tax laws or rates, the accounting for transactions that result in a step-up in the tax basis of goodwill, and other tax-related items. The Company adopted this ASU on January 1, 2021 and it did not have a material impact on its condensed consolidated financial statements. Accounting Pronouncements, Not Yet Adopted as of September 30, 2021 Reference Rate Reform - In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which is designed to ease the potential burden in accounting for the transition away from 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 is effective for all entities as of March 12, 2020 through December 31, 2022. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which expands the scope of Topic 848 to include derivative instruments that are affected by changes in the interest rates used for margining, discounting or contract price alignment as part of the market transition to new reference rates (the "discounting transition"). The Company is evaluating the impact of these ASUs, but does not expect it to have a material impact on its Condensed Consolidated Financial Statements and related disclosures. Convertible Instruments - In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40). The ASU simplifies accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity and updates selected earnings per share ("EPS") guidance. The ASU is effective for periods beginning after December 15, 2021. The Company is currently evaluating the impact of the new standard on its Condensed Consolidated Financial Statements and related disclosures. |
Sale of MATCHNow (Tables)
Sale of MATCHNow (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Carrying Value and Gain on Sale of MATCHNow | A summary of the carrying value of MATCHNow and gain on sale of MATCHNow is as follows: (in thousands) Total sale proceeds received $ 60,592 Total carrying value of MATCHNow as of MATCHNow Closing Date (1,940) Gain on sale of MATCHNow 58,652 Transaction costs (2,453) Gain on sale of MATCHNow, net of transaction costs $ 56,199 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of net income before noncontrolling interest to net income available for common stockholders | The below table contains a reconciliation of net income (loss) before noncontrolling interest to net income (loss) available for common stockholders: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Income before income taxes and noncontrolling interest $ 145,099 $ 252,515 $ 769,887 $ 1,123,272 Provision for income taxes 21,961 52,807 128,611 200,044 Net income 123,138 199,708 641,276 923,228 Noncontrolling interest (52,631) (82,999) (268,454) (386,311) Net income available for common stockholders $ 70,507 $ 116,709 $ 372,822 $ 536,917 |
Schedule of basic earnings per share | The calculation of basic and diluted earnings per share is presented below: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except for share or per share data) 2021 2020 2021 2020 Basic earnings (loss) per share: Net income available for common stockholders $ 70,507 $ 116,709 $ 372,822 $ 536,917 Less: Dividends and undistributed earnings allocated to participating securities (2,222) (3,417) (10,335) (14,210) Net income available for common stockholders, net of dividends and undistributed earnings allocated to participating securities 68,285 113,292 362,487 522,707 Weighted average shares of common stock outstanding: Class A 115,770,457 122,686,931 119,148,571 121,328,895 Basic earnings (loss) per share $ 0.59 $ 0.92 $ 3.04 $ 4.31 |
Schedule of diluted earnings per share | Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except for share or per share data) 2021 2020 2021 2020 Diluted earnings (loss) per share: Net income available for common stockholders, net of dividends and undistributed earnings allocated to participating securities $ 68,285 $ 113,292 $ 362,487 $ 522,707 Weighted average shares of common stock outstanding: Class A Issued and outstanding 115,770,457 122,686,931 119,148,571 121,328,895 Issuable pursuant to Amended and Restated 2015 Management Incentive Plan, Amended and Restated Investment Technology Group, Inc. 2007 Omnibus Equity Compensation Plan, and Warrants issued in connection with the Founder Member Loan 852,657 1,085,074 1,224,589 610,944 116,623,114 123,772,005 120,373,160 121,939,839 Diluted earnings (loss) per share $ 0.59 $ 0.92 $ 3.01 $ 4.29 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill by segment | The following table presents the details of goodwill by segment as of September 30, 2021 and December 31, 2020: (in thousands) Market Making Execution Services Corporate Total Balance as of period-end $ 755,292 $ 393,634 $ — $ 1,148,926 |
Schedule of acquired intangible assets | Acquired intangible assets consisted of the following as of September 30, 2021 and December 31, 2020: As of September 30, 2021 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Useful Lives Customer relationships $ 486,600 $ (130,182) $ 356,418 10 to 12 Technology 136,000 (97,966) 38,034 1 to 6 Favorable occupancy leases 5,895 (3,433) 2,462 3 to 15 Exchange memberships 3,998 — 3,998 Indefinite Trade name 3,600 (3,100) 500 3 ETF issuer relationships 950 (950) — 9 ETF buyer relationships 950 (950) — 9 Other $ 1,500 $ — $ 1,500 Indefinite $ 639,493 $ (236,581) $ 402,912 As of December 31, 2020 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Useful Lives Customer relationships $ 486,600 $ (94,299) $ 392,301 10 to 12 Technology 136,000 (82,403) 53,597 1 to 6 Favorable occupancy leases 5,895 (2,839) 3,056 3 to 15 Exchange memberships 3,998 — 3,998 Indefinite Trade name 3,600 (2,200) 1,400 3 ETF issuer relationships 950 (877) 73 9 ETF buyer relationships 950 (876) 74 9 Other $ — $ — $ — Indefinite $ 637,993 $ (183,494) $ 454,499 |
Schedule of finite-lived intangible assets, future amortization expense | The Company expects to record amortization expense as follows over the remaining current year and the next five subsequent years: (in thousands) Remainder of 2021 $ 16,580 2022 64,852 2023 63,960 2024 50,845 2025 47,879 2026 47,879 |
Receivables from_Payables to _2
Receivables from/Payables to Broker-Dealers and Clearing Organizations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Summary of receivables from and payables to brokers-dealers and clearing organizations | The following is a summary of receivables from and payables to brokers-dealers and clearing organizations at September 30, 2021 and December 31, 2020: (in thousands) September 30, 2021 December 31, 2020 Assets Due from prime brokers $ 557,316 $ 697,293 Deposits with clearing organizations 181,987 216,962 Net equity with futures commission merchants 239,697 248,943 Unsettled trades with clearing organizations 3,380 118,777 Securities failed to deliver 444,138 372,965 Commissions and fees 25,908 29,066 Total receivables from broker-dealers and clearing organizations $ 1,452,426 $ 1,684,006 Liabilities Due to prime brokers $ 606,840 $ 410,772 Net equity with futures commission merchants 69,147 77,257 Unsettled trades with clearing organizations 113,250 228,070 Securities failed to receive 304,598 156,804 Commissions and fees 1,136 3,543 Total payables to broker-dealers and clearing organizations $ 1,094,971 $ 876,446 |
Collateralized Transactions (Ta
Collateralized Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Collateralized Agreements [Abstract] | |
Summary of the fair value of collateralized transactions | The fair value of the collateralized transactions at September 30, 2021 and December 31, 2020 are summarized as follows: (in thousands) September 30, 2021 December 31, 2020 Securities received as collateral: Securities borrowed $ 1,221,032 $ 1,374,266 Securities purchased under agreements to resell 170,194 22,866 $ 1,391,226 $ 1,397,132 |
Schedule of financial instruments owned and pledged, where counterparty has right to repledge | Financial instruments owned and pledged, where the counterparty has the right to repledge, at September 30, 2021 and December 31, 2020 consisted of the following: (in thousands) September 30, 2021 December 31, 2020 Equities $ 947,661 $ 734,024 Exchange traded notes 11,395 12,515 $ 959,056 $ 746,539 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Instrument [Line Items] | |
Schedule of short-term debt | The following summarizes the Company's short-term borrowing balances outstanding, net of related debt issuance costs, with each described in further detail below. September 30, 2021 (in thousands) Borrowing Outstanding Deferred Debt Issuance Cost Short-term Borrowings, net Broker-dealer credit facilities $ 178,000 $ (1,881) $ 176,119 Short-term bank loans 136,695 — 136,695 $ 314,695 $ (1,881) $ 312,814 December 31, 2020 (in thousands) Borrowing Outstanding Deferred Debt Issuance Cost Short-term Borrowings, net Broker-dealer credit facilities $ 36,400 $ (387) $ 36,013 Short-term bank loans 28,673 — 28,673 $ 65,073 $ (387) $ 64,686 |
Outstanding borrowings and financing capacity or unused available capacity under the company’s borrowing arrangements | The following summarizes the Company’s broker-dealer credit facilities' carrying values, net of unamortized debt issuance costs, where applicable. These balances are included within Short-term borrowings on the Condensed Consolidated Statements of Financial Condition. At September 30, 2021 (in thousands) Interest Rate Financing Available Borrowing Outstanding Deferred Debt Issuance Cost Outstanding Borrowings, net Broker-dealer credit facilities: Uncommitted facility 1.25% $ 400,000 $ 178,000 $ (1,881) $ 176,119 Committed facility 2.61% 600,000 — — — $ 1,000,000 $ 178,000 $ (1,881) $ 176,119 At December 31, 2020 (in thousands) Interest Rate Financing Available Borrowing Outstanding Deferred Debt Issuance Cost Outstanding Borrowings, net Broker-dealer credit facilities: Uncommitted facility 1.25% $ 400,000 $ 36,400 $ (387) $ 36,013 Committed facility 1.40% 600,000 — — — $ 1,000,000 $ 36,400 $ (387) $ 36,013 |
Schedule of interest expense on debt | The following summarizes interest expense for the broker-dealer facilities. Interest expense is included within Interest and dividends expense in the accompanying Condensed Consolidated Statements of Comprehensive Income. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Broker-dealer credit facilities: Uncommitted facility $ 540 $ 244 $ 1,790 $ 1,007 Committed facility — 71 57 433 Demand Loan — — — 211 $ 540 $ 315 $ 1,847 $ 1,651 |
Schedule of aggregate future required principal payments based on terms of loan | As of September 30, 2021, aggregate future required minimum principal payments based on the terms of the long-term borrowings were as follows: (in thousands) September 30, 2021 Remainder of 2021 $ — 2022 — 2023 31,450 2024 — 2025 — Thereafter 1,599,774 Total principal of long-term borrowings $ 1,631,224 |
Short-Term Credit Facilities | |
Debt Instrument [Line Items] | |
Schedule of reconciliation of the senior secured credit facility | The proceeds of these facilities are used to meet margin requirements associated with the products traded by the Company in the ordinary course, and amounts borrowed are collateralized by the Company’s trading accounts with the applicable financial institution. At September 30, 2021 (in thousands) Weighted Average Financing Borrowing Prime Brokerage Credit Facilities: Prime brokerage credit facilities (1) 2.78% $ 616,000 $ 202,480 $ 616,000 $ 202,480 At December 31, 2020 (in thousands) Weighted Average Financing Borrowing Prime Brokerage Credit Facilities: Prime brokerage credit facilities (1) 2.77% $ 616,000 $ 134,664 $ 616,000 $ 134,664 (1) Outstanding borrowings are included with Receivables from/Payables to broker-dealers and clearing organizations within the Condensed Consolidated Statements of Financial Condition. |
Senior Secured Credit Facility | |
Debt Instrument [Line Items] | |
Schedule of reconciliation of the senior secured credit facility | The following summarizes the Company’s long-term borrowings, net of unamortized discount and debt issuance costs, where applicable: At September 30, 2021 (in thousands) Maturity Interest Outstanding Principal Discount Deferred Debt Issuance Cost Outstanding Borrowings, net Long-term borrowings: First Lien Term Loan Facility March 2026 3.08% $ 1,599,774 $ (3,949) $ (23,187) $ 1,572,638 SBI bonds January 2023 5.00% 31,450 — (26) 31,424 $ 1,631,224 $ (3,949) $ (23,213) $ 1,604,062 At December 31, 2020 (in thousands) Maturity Interest Outstanding Principal Discount Deferred Debt Issuance Cost Outstanding Borrowings, net Long-term borrowings: First Lien Term Loan Facility March 2026 3.15% $ 1,636,512 $ (4,723) $ (26,367) $ 1,605,422 SBI bonds January 2023 5.00% 33,898 — (40) 33,858 $ 1,670,410 $ (4,723) $ (26,407) $ 1,639,280 |
Financial Assets and Liabilit_2
Financial Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of fair value measurements measured on a recurring basis | Fair value measurements for those items measured on a recurring basis are summarized below as of September 30, 2021: September 30, 2021 (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Counterparty and Cash Collateral Netting Total Fair Value Assets Financial instruments owned, at fair value: Equity securities $ 436,245 $ 2,117,572 $ — $ — $ 2,553,817 U.S. and Non-U.S. government obligations 216,125 19,947 — — 236,072 Corporate Bonds — 201,086 — — 201,086 Exchange traded notes 427 8,285 — — 8,712 Currency forwards — 311,230 — (300,399) 10,831 Options 8,320 — — — 8,320 $ 661,117 $ 2,658,120 $ — $ (300,399) $ 3,018,838 Financial instruments owned, pledged as collateral: Equity securities $ 576,478 $ 371,183 $ — $ — $ 947,661 Exchange traded notes 5,389 6,006 — — 11,395 $ 581,867 $ 377,189 $ — $ — $ 959,056 Other Assets Equity investment $ — $ — $ 85,317 $ — $ 85,317 Exchange stock 2,609 — — — 2,609 $ 2,609 $ — $ 85,317 $ — $ 87,926 Liabilities Financial instruments sold, not yet purchased, at fair value: Equity securities $ 1,336,070 $ 825,070 $ — $ — $ 2,161,140 U.S. and Non-U.S. government obligations 285,997 12,747 — — 298,744 Corporate Bonds — 349,299 — — 349,299 Exchange traded notes 835 4,750 — — 5,585 Currency forwards — 316,352 — (308,611) 7,741 Options 49,140 — — — 49,140 $ 1,672,042 $ 1,508,218 $ — $ (308,611) $ 2,871,649 Payables to broker dealers and clearing organizations: Interest rate swap $ — $ 43,608 $ — $ — $ 43,608 Fair value measurements for those items measured on a recurring basis are summarized below as of December 31, 2020: December 31, 2020 (in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Counterparty and Cash Collateral Netting Total Fair Value Assets Financial instruments owned, at fair value: Equity securities $ 761,484 $ 1,194,105 $ — $ — $ 1,955,589 U.S. and Non-U.S. government obligations 151,723 48,059 — — 199,782 Corporate Bonds — 135,518 — — 135,518 Exchange traded notes 106 19,721 — — 19,827 Currency forwards — 341,360 — (291,964) 49,396 Options 9,080 — — — 9,080 $ 922,393 $ 1,738,763 $ — $ (291,964) $ 2,369,192 Financial instruments owned, pledged as collateral: Equity securities $ 496,943 $ 237,081 $ — $ — $ 734,024 Exchange traded notes 2 12,513 — — 12,515 $ 496,945 $ 249,594 $ — $ — $ 746,539 Other Assets Equity investment $ — $ — $ 66,030 $ — $ 66,030 Exchange stock 2,286 — — — 2,286 $ 2,286 $ — $ 66,030 $ — $ 68,316 Liabilities Financial instruments sold, not yet purchased, at fair value: Equity securities $ 1,307,082 $ 1,137,968 $ — $ — $ 2,445,050 U.S. and Non-U.S. government obligations 83,173 19,984 — — 103,157 Corporate Bonds — 358,734 — — 358,734 Exchange traded notes — 7,431 — — 7,431 Currency forwards — 292,965 — (292,870) 95 Options 9,241 — — — 9,241 $ 1,399,496 $ 1,817,082 $ — $ (292,870) $ 2,923,708 Payables to broker dealers and clearing organizations: Interest rate swap $ — $ 63,513 $ — $ — $ 63,513 The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of September 30, 2021: September 30, 2021 Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 683,836 $ 683,836 $ 683,836 $ — $ — Cash restricted or segregated under regulations and other 70,477 70,477 70,477 — — Securities borrowed 1,277,601 1,277,601 — 1,277,601 — Securities purchased under agreements to resell 170,194 170,194 — 170,194 — Receivables from broker-dealers and clearing organizations 1,452,426 1,452,426 415 1,452,011 — Receivables from customers 414,244 414,244 — 414,244 — Other assets (1) 14,427 14,427 — 14,427 — Total Assets $ 4,083,205 $ 4,083,205 $ 754,728 $ 3,328,477 $ — Liabilities Short-term borrowings $ 312,814 $ 314,695 $ — $ 314,695 $ — Long-term borrowings 1,604,062 1,629,224 — 1,629,224 — Securities loaned 1,017,436 1,017,436 — 1,017,436 — Securities sold under agreements to repurchase 583,268 583,268 — 583,268 — Payables to broker-dealers and clearing organizations (2) 1,094,971 1,094,971 532,533 562,438 — Payables to customers 182,939 182,939 — 182,939 — Other liabilities (3) 8,904 8,904 — 8,904 — Total Liabilities $ 4,804,394 $ 4,831,437 $ 532,533 $ 4,298,904 $ — (1) Includes cash collateral and deposits, and interest and dividends receivables. (2) Payables to broker-dealers and clearing organizations include interest rate swaps carried at fair value. (3) Includes deposits, interest and dividends payable. The table below summarizes financial assets and liabilities not carried at fair value on a recurring basis as of December 31, 2020: December 31, 2020 Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) Assets Cash and cash equivalents $ 889,559 $ 889,559 $ 889,559 $ — $ — Cash restricted or segregated under regulations and other 117,446 117,446 117,446 — — Securities borrowed 1,425,016 1,425,016 — 1,425,016 — Securities purchased under agreements to resell 22,866 22,866 — 22,866 — Receivables from broker-dealers and clearing organizations 1,684,006 1,684,006 173,578 1,510,428 — Receivables from customers 214,478 214,478 — 214,478 — Other assets (1) 21,735 21,735 — 21,735 — Total Assets $ 4,375,106 $ 4,375,106 $ 1,180,583 $ 3,194,523 $ — Liabilities Short-term borrowings 64,686 65,073 — 65,073 — Long-term borrowings 1,639,280 1,672,456 — 1,672,456 — Securities loaned 948,256 948,256 — 948,256 — Securities sold under agreements to repurchase 461,235 461,235 — 461,235 — Payables to broker dealer and clearing organizations (2) 876,446 876,446 3,517 872,929 — Payables to customers 118,826 118,826 — 118,826 — Other liabilities (3) 9,208 9,208 — 9,208 — Total Liabilities $ 4,117,937 $ 4,151,500 $ 3,517 $ 4,147,983 $ — (1) Includes cash collateral and deposits, and interest and dividends receivables. (2) Payables to broker-dealers and clearing organizations include interest rate swaps carried at fair value. (3) Includes deposits, interest and dividends payable. |
Fair Value Measurement Inputs and Valuation Techniques | The table below presents information on the valuation techniques, significant unobservable inputs and their ranges for the JNX Investment: September 30, 2021 (in thousands) Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average Equity investment $ 85,317 Discounted cash flow Estimated revenue growth 2.4% - 22.7% 8.5 % Discount rate 14.4% - 14.4% 14.4 % Market Future enterprise value/ EBIDTA ratio 9.8x - 44.5x 17.2x December 31, 2020 (in thousands) Fair Value Valuation Technique Significant Unobservable Input Range Weighted Average Equity investment $ 66,030 Discounted cash flow Estimated revenue growth (9.0)% - 39.0% 9.6 % Discount rate 14.4% - 14.4% 14.4 % Market Future enterprise value/ EBIDTA ratio 12.2x - 21.9x 13.8x |
Summary of changes in Level 3 financial instruments measured at fair value on a recurring basis | The following presents the changes in the Company's Level 3 financial instruments measured at fair value on a recurring basis: Three Months Ended September 30, 2021 (in thousands) Balance at June 30, 2021 Purchases Total Realized and Unrealized Gains / (Losses) (1) Net Transfers into (out of) Level 3 Settlement Balance at September 30, 2021 Change in Net Unrealized Gains / (Losses) on Investments still held at September 30, 2021 Assets Other assets: Equity investment $ 78,313 $ — $ 7,004 $ — $ — $ 85,317 $ 7,004 Total $ 78,313 $ — $ 7,004 $ — $ — $ 85,317 $ 7,004 (1) Total realized and unrealized gains/(losses) includes gains and losses realized on the SBI Bonds (see Note 9 "Borrowings" for more details) due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment. Three Months Ended September 30, 2020 (in thousands) Balance at June 30, 2020 Purchases Total Realized and Unrealized Gains / (Losses) (1) Net Transfers into (out of) Level 3 Settlement Balance at September 30, 2020 Change in Net Unrealized Gains / (Losses) on Investments still held at September 30, 2020 Assets Other assets: Equity investment $ 51,599 $ — $ 13,104 $ — $ — $ 64,703 $ 13,104 Total $ 51,599 $ — $ 13,104 $ — $ — $ 64,703 $ 13,104 (1) Total realized and unrealized gains/(losses) includes gains and losses realized on the SBI Bonds (see Note 9 "Borrowings" for more details) due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment. Nine Months Ended September 30, 2021 (in thousands) Balance at December 31, 2020 Purchases Total Realized and Unrealized Gains / (Losses) (1) Net Transfers into (out of) Level 3 Settlement Balance at September 30, 2021 Change in Net Unrealized Gains / (Losses) on Investments still held at September 30, 2021 Assets Other assets: Equity investment $ 66,030 $ — $ 19,287 $ — $ — $ 85,317 $ 19,287 Total $ 66,030 $ — $ 19,287 $ — $ — $ 85,317 $ 19,287 (1) Total realized and unrealized gains/(losses) includes gains and losses realized on the SBI Bonds (see Note 9 "Borrowings" for more details) due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment. Nine Months Ended September 30, 2020 (in thousands) Balance at December 31, 2019 Purchases Total Realized and Unrealized Gains / (Losses) (1) Net Transfers into (out of) Level 3 Settlement Balance at September 30, 2020 Change in Net Unrealized Gains / (Losses) on Investments still held at September 30, 2020 Assets Other assets: Equity investment $ 46,245 $ — $ 18,458 $ — $ — $ 64,703 $ 18,458 Total $ 46,245 $ — $ 18,458 $ — $ — $ 64,703 $ 18,458 (1) Total realized and unrealized gains/(losses) includes gains and losses realized on the SBI Bonds (see Note 9 "Borrowings" for more details) due to fluctuations in currency rates as well as gains and losses recognized on changes in the fair value of the JNX Investment. |
Summary of netting of certain financial assets | The following tables set forth the gross and net presentation of certain financial assets and financial liabilities as of September 30, 2021 and December 31, 2020: September 30, 2021 Gross Amounts of Recognized Assets Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instrument Collateral Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Assets: Securities borrowed $ 1,277,601 $ — $ 1,277,601 $ (1,221,032) $ (8,097) $ 48,472 Securities purchased under agreements to resell 170,194 — 170,194 (170,194) — — Trading assets, at fair value: Currency forwards 311,230 (300,399) 10,831 — — 10,831 Options 8,320 — 8,320 — (8,320) — Total $ 1,767,345 $ (300,399) $ 1,466,946 $ (1,391,226) $ (16,417) $ 59,303 Gross Amounts of Recognized Liabilities Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instruments Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Liabilities: Securities loaned $ 1,017,436 $ — $ 1,017,436 $ (995,181) $ (12,655) $ 9,600 Securities sold under agreements to repurchase 583,268 — 583,268 (583,268) — — Payable to broker-dealers and clearing organizations Interest rate swaps 43,608 — 43,608 — — 43,608 Trading liabilities, at fair value: Currency forwards 316,352 (308,611) 7,741 — — 7,741 Options 49,140 — 49,140 — (8,320) 40,820 Total $ 2,009,804 $ (308,611) $ 1,701,193 $ (1,578,449) $ (20,975) $ 101,769 December 31, 2020 Gross Amounts of Recognized Assets Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instrument Collateral Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Assets: Securities borrowed $ 1,425,016 $ — $ 1,425,016 $ (1,374,266) $ (9,686) $ 41,064 Securities purchased under agreements to resell 22,866 — 22,866 (22,866) — — Trading assets, at fair value: Currency forwards 341,360 (291,964) 49,396 — — 49,396 Options 9,080 — 9,080 — (9,080) — Total $ 1,798,322 $ (291,964) $ 1,506,358 $ (1,397,132) $ (18,766) $ 90,460 Gross Amounts of Recognized Assets Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instrument Collateral Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Liabilities: Securities loaned $ 948,256 $ — $ 948,256 $ (921,593) $ (17,800) $ 8,863 Securities sold under agreements to repurchase 461,235 — 461,235 (461,235) — — Interest rate swaps 63,513 — 63,513 — (63,162) 351 Trading liabilities, at fair value: Currency forwards 292,965 (292,870) 95 — — 95 Options 9,241 — 9,241 — (9,080) 161 Total $ 1,775,210 $ (292,870) $ 1,482,340 $ (1,382,828) $ (90,042) $ 9,470 |
Summary of netting of certain financial liabilities | The following tables set forth the gross and net presentation of certain financial assets and financial liabilities as of September 30, 2021 and December 31, 2020: September 30, 2021 Gross Amounts of Recognized Assets Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instrument Collateral Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Assets: Securities borrowed $ 1,277,601 $ — $ 1,277,601 $ (1,221,032) $ (8,097) $ 48,472 Securities purchased under agreements to resell 170,194 — 170,194 (170,194) — — Trading assets, at fair value: Currency forwards 311,230 (300,399) 10,831 — — 10,831 Options 8,320 — 8,320 — (8,320) — Total $ 1,767,345 $ (300,399) $ 1,466,946 $ (1,391,226) $ (16,417) $ 59,303 Gross Amounts of Recognized Liabilities Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instruments Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Liabilities: Securities loaned $ 1,017,436 $ — $ 1,017,436 $ (995,181) $ (12,655) $ 9,600 Securities sold under agreements to repurchase 583,268 — 583,268 (583,268) — — Payable to broker-dealers and clearing organizations Interest rate swaps 43,608 — 43,608 — — 43,608 Trading liabilities, at fair value: Currency forwards 316,352 (308,611) 7,741 — — 7,741 Options 49,140 — 49,140 — (8,320) 40,820 Total $ 2,009,804 $ (308,611) $ 1,701,193 $ (1,578,449) $ (20,975) $ 101,769 December 31, 2020 Gross Amounts of Recognized Assets Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instrument Collateral Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Assets: Securities borrowed $ 1,425,016 $ — $ 1,425,016 $ (1,374,266) $ (9,686) $ 41,064 Securities purchased under agreements to resell 22,866 — 22,866 (22,866) — — Trading assets, at fair value: Currency forwards 341,360 (291,964) 49,396 — — 49,396 Options 9,080 — 9,080 — (9,080) — Total $ 1,798,322 $ (291,964) $ 1,506,358 $ (1,397,132) $ (18,766) $ 90,460 Gross Amounts of Recognized Assets Amounts Offset in the Condensed Consolidated Statement of Financial Condition Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition (in thousands) Financial Instrument Collateral Counterparty Netting/ Cash Collateral Net Amount Offsetting of Financial Liabilities: Securities loaned $ 948,256 $ — $ 948,256 $ (921,593) $ (17,800) $ 8,863 Securities sold under agreements to repurchase 461,235 — 461,235 (461,235) — — Interest rate swaps 63,513 — 63,513 — (63,162) 351 Trading liabilities, at fair value: Currency forwards 292,965 (292,870) 95 — — 95 Options 9,241 — 9,241 — (9,080) 161 Total $ 1,775,210 $ (292,870) $ 1,482,340 $ (1,382,828) $ (90,042) $ 9,470 |
Summary of gross obligations for repurchase agreement and securities borrowed transactions by remaining contractual maturity and class of collateral pledged | The following table presents gross obligations for securities sold under agreements to repurchase and for securities lending transactions by remaining contractual maturity and the class of collateral pledged: September 30, 2021 Remaining Contractual Maturity (in thousands) Overnight and Continuous Less than 30 days 30 - 60 61 - 90 Greater than 90 Total Securities sold under agreements to repurchase: Equity securities $ — $ 125,000 $ 50,000 $ 160,000 $ 50,000 $ 385,000 U.S. and Non-U.S. government obligations 198,268 — — — 198,268 Total $ 198,268 $ 125,000 $ 50,000 $ 160,000 $ 50,000 $ 583,268 Securities loaned: Equity securities $ 1,017,436 $ — $ — $ — $ — $ 1,017,436 Total $ 1,017,436 $ — $ — $ — $ — $ 1,017,436 December 31, 2020 Remaining Contractual Maturity (in thousands) Overnight and Continuous Less than 30 days 30 - 60 61 - 90 Greater than 90 Total Securities sold under agreements to repurchase: Equity securities $ — $ 125,000 $ 50,000 $ 200,000 $ — $ 375,000 U.S. and Non-U.S. government obligations 86,235 — — — — 86,235 Total $ 86,235 $ 125,000 $ 50,000 $ 200,000 $ — $ 461,235 Securities loaned: Equity securities 948,256 — — — — 948,256 Total $ 948,256 $ — $ — $ — $ — $ 948,256 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value of derivative instruments on a gross basis | The fair value of the Company’s derivative instruments on a gross basis consisted of the following at September 30, 2021 and December 31, 2020: (in thousands) September 30, 2021 December 31, 2020 Derivatives Assets Financial Statements Location Fair Value Notional Fair Value Notional Derivative instruments not designated as hedging instruments: Equities futures Receivables from broker-dealers and clearing organizations $ (753) $ 1,371,507 $ 4,669 $ 2,208,899 Commodity futures Receivables from broker-dealers and clearing organizations (217) 137,010 173,889 6,237,389 Currency futures Receivables from broker-dealers and clearing organizations 1,964 847,313 (11,736) 2,823,277 Fixed income futures Receivables from broker-dealers and clearing organizations 158 16,292 42 102,476 Options Financial instruments owned 8,320 934,627 9,080 746,723 Currency forwards Financial instruments owned 311,230 28,029,260 341,360 30,596,681 Derivatives Liabilities Financial Statements Location Fair Value Notional Fair Value Notional Derivative instruments not designated as hedging instruments: Equities futures Payables to broker-dealers and clearing organizations $ 1,240 $ 398,517 $ 31 $ 90,219 Commodity futures Payables to broker-dealers and clearing organizations (533,414) 9,633,999 (5,397) 27,287 Currency futures Payables to broker-dealers and clearing organizations (6,057) 2,664,776 3,598 2,269,898 Fixed income futures Payables to broker-dealers and clearing organizations 97 51,091 — 1,566 Options Financial instruments sold, not yet purchased 49,140 936,594 9,241 736,997 Currency forwards Financial instruments sold, not yet purchased 316,352 28,031,821 292,965 30,572,490 Derivative instruments designated as hedging instruments: Interest rate swaps Payables to broker-dealers and clearing organizations 43,608 1,525,000 63,513 1,525,000 |
Schedule of net gain (loss) from derivative instruments not designated as hedging instruments | The following table summarizes the net gain (loss) from derivative instruments not designated as hedging instruments under ASC 815, which are recorded in total revenues, and from those designated as hedging instruments under ASC 815, which are recorded in other comprehensive income in the accompanying Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021 and 2020. Three Months Ended September 30, Nine Months Ended September 30, (in thousands) Financial Statements Location 2021 2020 2021 2020 Derivative instruments not designated as hedging instruments: Futures Trading income, net $ 84,875 $ (12,262) $ 213,569 $ 11,440 Currency forwards Trading income, net (49,599) 62,465 12,756 255,044 Options Trading income, net 9,455 35,343 63,016 61,643 Interest rate swap on term loan Other, net (474) (1,417) (1,397) (1,417) $ 44,257 $ 84,129 $ 287,944 $ 326,710 Derivative instruments designated as hedging instruments: Interest rate swaps (1) Other comprehensive income $ 4,112 $ 314 $ 21,453 $ (64,425) $ 4,112 $ 314 $ 21,453 $ (64,425) (1) The Company entered into a five-year $1,000 million floating-to-fixed interest rate swap agreement in the first quarter of 2020 and a five-year $525 million floating-to-fixed interest rate swap agreement in the fourth quarter of 2019. These two interest rate swaps met the criteria to be considered qualifying cash flow hedges under ASC 815 in the first quarter of 2020, and as such, the mark-to-market gains (losses) on the instruments were recorded within Other comprehensive income on the Condensed Consolidated Statements of Comprehensive Income beginning in the first quarter of 2020. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of nonconsolidated VIE | The following table presents the Company’s nonconsolidated VIEs at September 30, 2021: Carrying Amount Maximum Exposure to Loss VIEs' assets (in thousands) Asset Liability Equity investment $ 30,388 $ — $ 30,388 $ 154,789 The following table presents the Company’s nonconsolidated VIEs at December 31, 2020: Carrying Amount Maximum Exposure to Loss VIEs' assets (in thousands) Asset Liability Equity investment $ 28,969 $ — $ 28,969 $ 175,547 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | The following tables present the Company’s revenue from contracts with customers disaggregated by service, by timing of revenue recognition, reconciled to the Company’s segments, for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, 2021 (in thousands) Market Making Execution Services Corporate Total Revenues from contracts with customers: Commissions, net $ 8,894 $ 93,474 $ — $ 102,368 Workflow technology — 23,149 — 23,149 Analytics — 10,406 — 10,406 Total revenue from contracts with customers 8,894 127,029 — 135,923 Other sources of revenue 400,396 5,520 2,505 408,421 Total revenues $ 409,290 $ 132,549 $ 2,505 $ 544,344 Timing of revenue recognition: Services transferred at a point in time $ 409,290 $ 114,010 $ 2,505 $ 525,805 Services transferred over time — 18,539 — 18,539 Total revenues $ 409,290 $ 132,549 $ 2,505 $ 544,344 Three Months Ended September 30, 2020 (in thousands) Market Making Execution Services Corporate Total Revenues from contracts with customers: Commissions, net $ 9,391 $ 91,460 $ — $ 100,851 Workflow technology — 23,044 — 23,044 Analytics — 9,958 — 9,958 Total revenue from contracts with customers 9,391 124,462 — 133,853 Other sources of revenue 465,207 58,218 (1,166) 522,259 Total revenues $ 474,598 $ 182,680 $ (1,166) $ 656,112 Timing of revenue recognition: Services transferred at a point in time $ 474,598 $ 164,018 $ (1,166) $ 637,450 Services transferred over time — 18,662 — 18,662 Total revenues $ 474,598 $ 182,680 $ (1,166) $ 656,112 Nine Months Ended September 30, 2021 (in thousands) Market Making Execution Services Corporate Total Revenues from contracts with customers: Commissions, net $ 32,111 $ 332,000 $ — $ 364,111 Workflow technology — 75,572 — 75,572 Analytics — 31,004 — 31,004 Total revenue from contracts with customers 32,111 438,576 — 470,687 Other sources of revenue 1,603,444 21,342 10,408 1,635,194 Total revenues $ 1,635,555 $ 459,918 $ 10,408 $ 2,105,881 Timing of revenue recognition: Services transferred at a point in time $ 1,635,555 $ 404,371 $ 10,408 $ 2,050,334 Services transferred over time — 55,547 — 55,547 Total revenues $ 1,635,555 $ 459,918 $ 10,408 $ 2,105,881 Nine Months Ended September 30, 2020 (in thousands) Market Making Execution Services Corporate Total Revenues from contracts with customers: Commissions, net $ 9,526 $ 333,823 $ — $ 343,349 Workflow technology — 78,376 — 78,376 Analytics — 30,608 30,608 Total revenue from contracts with customers 9,526 442,807 — 452,333 Other sources of revenue 2,054,774 57,814 (2,286) 2,110,302 Total revenues $ 2,064,300 $ 500,621 $ (2,286) $ 2,562,635 Timing of revenue recognition: Services transferred at a point in time $ 2,064,300 $ 444,683 $ (2,286) $ 2,506,697 Services transferred over time — 55,938 — 55,938 Total revenues $ 2,064,300 $ 500,621 $ (2,286) $ 2,562,635 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Lease assets and liabilities | Lease assets and liabilities are summarized as follows: (in thousands) Financial Statement Location September 30, 2021 December 31, 2020 Operating leases Operating lease right-of-use assets Operating lease right-of-use assets $ 247,531 $ 268,864 Operating lease liabilities Operating lease liabilities 292,967 315,340 Finance leases Property and equipment, at cost Property, equipment, and capitalized software, net 18,479 36,093 Accumulated depreciation Property, equipment, and capitalized software, net (10,902) (24,585) Finance lease liabilities Accounts payable, accrued expenses, and other liabilities 7,705 11,687 |
Lease term, discount rate and components of lease expense | Weighted average remaining lease term and discount rate are as follows: September 30, 2021 December 31, 2020 Weighted average remaining lease term Operating leases 6.68 years 6.9 years Finance leases 1.74 years 2.0 years Weighted average discount rate Operating leases 5.49 % 5.67 % Finance leases 2.41 % 3.13 % The components of lease expense are as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Operating lease cost: Fixed $ 18,994 $ 18,521 $ 56,772 $ 55,333 Variable 1,913 2,393 5,144 6,614 Impairment of ROU Asset — — 1,198 — Total Operating lease cost $ 20,907 $ 20,914 $ 63,114 $ 61,947 Sublease income 4,537 4,399 13,404 11,994 Finance lease cost: Amortization of ROU Asset $ 1,460 $ 2,668 $ 5,024 $ 8,838 Interest on lease liabilities 50 97 183 339 Total Finance lease cost $ 1,510 $ 2,765 $ 5,207 $ 9,177 |
Future minimum lease payments under operating leases | Future minimum lease payments under operating and finance leases with non-cancelable lease terms, as of September 30, 2021, are as follows: (in thousands) Operating Leases Finance Leases 2021 $ 17,078 $ 1,468 2022 69,887 4,441 2023 68,128 1,818 2024 39,614 247 2025 31,859 — 2026 and thereafter 127,472 — Total lease payments $ 354,038 $ 7,974 Less imputed interest (61,071) (269) Total lease liability $ 292,967 $ 7,705 |
Future minimum lease payments under finance leases | Future minimum lease payments under operating and finance leases with non-cancelable lease terms, as of September 30, 2021, are as follows: (in thousands) Operating Leases Finance Leases 2021 $ 17,078 $ 1,468 2022 69,887 4,441 2023 68,128 1,818 2024 39,614 247 2025 31,859 — 2026 and thereafter 127,472 — Total lease payments $ 354,038 $ 7,974 Less imputed interest (61,071) (269) Total lease liability $ 292,967 $ 7,705 |
Cash (Tables)
Cash (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Reconciliation of cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents together with restricted or segregated cash as reported within the Condensed Consolidated Statements of Financial Condition to the sum of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows. (in thousands) September 30, 2021 December 31, 2020 Cash and cash equivalents $ 683,836 $ 889,559 Cash restricted or segregated under regulations and other 70,477 117,446 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 754,313 $ 1,007,005 |
Restrictions on segregated cash | The following table provides a reconciliation of cash and cash equivalents together with restricted or segregated cash as reported within the Condensed Consolidated Statements of Financial Condition to the sum of the same such amounts shown in the Condensed Consolidated Statements of Cash Flows. (in thousands) September 30, 2021 December 31, 2020 Cash and cash equivalents $ 683,836 $ 889,559 Cash restricted or segregated under regulations and other 70,477 117,446 Total cash, cash equivalents and restricted cash shown in the statement of cash flows $ 754,313 $ 1,007,005 |
Capital Structure (Tables)
Capital Structure (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The following table presents the changes in Other Comprehensive Income (Loss) for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, 2021 (in thousands) AOCI Beginning Balance Amounts recorded Amounts reclassified from AOCI to income AOCI Ending Balance Net change in unrealized cash flow hedges gains (losses) (1) $ (24,952) $ (1,612) $ 3,803 $ (22,761) Foreign exchange translation adjustment 5,835 (4,912) — 923 Total $ (19,117) $ (6,524) $ 3,803 $ (21,838) (1) Amounts reclassified from AOCI to income are included within Financing interest expense on long-term borrowings on the Condensed Consolidated Statements of Comprehensive Income. As of September 30, 2021, the Company expects approximately $15.0 million to be reclassified from AOCI into earnings over the next 12 months. The timing of the reclassification is based on the interest payment schedule of the long-term borrowings. Three Months Ended September 30, 2020 (in thousands) AOCI Beginning Balance Amounts recorded Amounts reclassified from AOCI to income AOCI Ending Balance Net change in unrealized cash flow hedges gains (losses) $ (36,710) $ (1,797) $ 1,948 $ (36,559) Foreign exchange translation adjustment (2,857) 4,213 — 1,356 Total $ (39,567) $ 2,416 $ 1,948 $ (35,203) Nine Months Ended September 30, 2021 (in thousands) AOCI Beginning Balance Amounts recorded Amounts reclassified from AOCI to income AOCI Ending Balance Net change in unrealized cash flow hedges gains (losses) (1) $ (33,444) $ (83) $ 10,766 $ (22,761) Foreign exchange translation adjustment 7,957 (7,034) — 923 Total $ (25,487) $ (7,117) $ 10,766 $ (21,838) (1) Amounts reclassified from AOCI to income are included within Financing interest expense on long-term borrowings on the Consolidated Statements of Comprehensive Income. As of September 30, 2021, the Company expects approximately $15.0 million to be reclassified from AOCI into earnings over the next 12 months. The timing of the reclassification is based on the interest payment schedule of the long-term borrowings. Nine Months Ended September 30, 2020 (in thousands) AOCI Beginning Balance Amounts recorded Amounts reclassified from AOCI to income AOCI Ending Balance Net change in unrealized cash flow hedges gains (losses) $ — $ (42,405) $ 5,846 $ (36,559) Foreign exchange translation adjustment (647) 2,003 — 1,356 Total $ (647) $ (40,402) $ 5,846 $ (35,203) (1) Amounts reclassified from AOCI to income are included within Financing interest expense on long-term borrowings on the Consolidated Statements of Comprehensive Income. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock options activity | The following table summarizes activity related to stock options for the nine months ended September 30, 2021 and 2020: Options Outstanding Options Exercisable Number of Options Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life Number of Options Weighted Average Exercise Price At December 31, 2019 3,233,779 $ 18.74 5.24 3,233,779 $ 18.74 Granted — — — — — Exercised (807,627) 17.96 — (807,627) 17.96 Forfeited or expired — — — — — At September 30, 2020 2,426,152 $ 19.00 4.49 2,426,152 $ 19.00 At December 31, 2020 2,324,152 $ 19.00 4.24 2,324,152 $ 19.00 Granted — — — — — Exercised (446,997) 19.00 — (446,997) 19.00 Forfeited or expired — — — — — At September 30, 2021 1,877,155 $ 19.00 3.49 1,877,155 $ 19.00 |
Schedule of activity related to restricted stock units | The following table summarizes activity related to RSUs (including the Assumed Awards) and RSAs for the nine months ended September 30, 2021 and 2020: Number of RSUs and RSAs Weighted At December 31, 2019 2,993,489 $ 24.10 Granted 3,300,894 17.15 Forfeited (391,223) 17.90 Vested (2,124,843) 20.40 At September 30, 2020 3,778,317 $ 20.77 At December 31, 2020 3,393,084 $ 21.35 Granted (1) 2,442,953 27.06 Forfeited (191,296) 22.97 Vested (2,032,477) 23.27 At September 30, 2021 3,612,264 $ 24.05 (1) Excluded in the number of RSUs and RSAs are 350,000 participating RSAs where the grant date has not been achieved because the performance conditions have not been met. |
Regulatory Requirement (Tables)
Regulatory Requirement (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of regulatory capital and regulatory capital requirements | VAL's regulatory capital and regulatory capital requirements as of September 30, 2021 was as follows: (in thousands) Regulatory Capital Regulatory Capital Requirement Excess Regulatory Capital Virtu Americas LLC $ 484,482 $ 1,725 $ 482,757 As of September 30, 2021, VAL had $60.9 million of cash in special reserve bank accounts for the benefit of customers pursuant to SEC Rule 15c3-3, Computation for Determination of Reserve Requirements, and $8.8 million of cash in reserve bank accounts for the benefit of proprietary accounts of brokers. The balances are included within Cash restricted or segregated under regulations and other on the Condensed Consolidated Statements of Financial Condition. VAL's regulatory capital and regulatory capital requirements as of December 31, 2020 was as follows: (in thousands) Regulatory Capital Regulatory Capital Requirement Excess Regulatory Capital Virtu Americas LLC $ 621,253 $ 2,917 $ 618,336 The regulatory net capital balances and regulatory capital requirements applicable to the Company's foreign subsidiaries as of September 30, 2021 were as follows: (in thousands) Regulatory Capital Regulatory Capital Requirement Excess Regulatory Capital Canada Virtu ITG Canada Corp $ 16,911 $ 197 $ 16,714 Virtu Financial Canada ULC 200 197 3 Ireland Virtu ITG Europe Limited (1) 78,066 32,636 45,430 Virtu Financial Ireland Limited (1) 109,229 58,083 51,146 United Kingdom Virtu ITG UK Limited 1,057 846 211 Asia Pacific Virtu ITG Australia Limited 30,717 8,776 21,941 Virtu ITG Hong Kong Limited 2,902 513 2,389 Virtu ITG Singapore Pte Limited 845 74 771 (1) Preliminary The regulatory net capital balances and regulatory capital requirements applicable to the Company's foreign subsidiaries as of December 31, 2020 were as follows: (in thousands) Regulatory Capital Regulatory Capital Requirement Excess Regulatory Capital Canada Virtu ITG Canada Corp $ 12,944 $ 196 $ 12,748 Virtu Financial Canada ULC 2,486 196 2,290 Ireland Virtu ITG Europe Limited 57,459 32,106 25,353 Virtu Financial Ireland Limited 94,528 41,038 53,490 United Kingdom Virtu ITG UK Limited 1,290 910 380 Asia Pacific Virtu ITG Australia Limited 30,606 12,729 17,877 Virtu ITG Hong Kong Limited 4,290 625 3,665 Virtu ITG Singapore Pte Limited 796 76 720 |
Geographic Information and Bu_2
Geographic Information and Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of total revenues by geographic area | The following table presents total revenues by geographic area for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2021 2020 2021 2020 Revenues: United States $ 433,013 $ 484,594 $ 1,678,650 $ 2,045,330 Ireland 55,137 61,320 242,614 233,783 Singapore 30,696 26,630 102,965 140,492 Canada 13,955 71,268 43,924 103,331 Australia 9,982 10,107 31,868 32,186 United Kingdom — 964 1,745 3,944 Others 1,561 1,229 4,115 3,569 Total revenues $ 544,344 $ 656,112 $ 2,105,881 $ 2,562,635 |
Schedule of revenues, income (loss) before income taxes (“Pre-tax earnings”) and total assets by segment | The Company’s total revenues and income before income taxes and noncontrolling interest (“Pre-tax earnings”) by segment for the three months ended September 30, 2021 and 2020 and are summarized in the following table: (in thousands) Market Execution Corporate Consolidated 2021: Total revenue $ 409,290 $ 132,549 $ 2,505 $ 544,344 Income before income taxes and noncontrolling interest 135,875 7,532 1,692 145,099 2020: Total revenue 474,598 182,680 (1,166) 656,112 Income (loss) before income taxes and noncontrolling interest 161,732 102,029 (11,246) 252,515 The Company's Pre-tax earnings by segment for the nine months ended September 30, 2021 and 2020 are summarized in the following table: (in thousands) Market Making Execution Services Corporate Consolidated Total 2021 Total revenue $ 1,635,555 $ 459,918 $ 10,408 $ 2,105,881 Income (loss) before income taxes and noncontrolling interest 713,723 51,941 4,223 769,887 2020 Total revenue 2,064,300 500,621 (2,286) 2,562,635 Income (loss) before income taxes and noncontrolling interest 1,010,871 137,879 (25,478) 1,123,272 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)countryvenueacquisitioninstrument$ / shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)countrysegmentvenueacquisitioninstrument$ / shares | Sep. 30, 2020USD ($) | |
Organization, Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Number of financial instruments | instrument | 25,000 | 25,000 | ||
Number of venues | venue | 235 | 235 | ||
Number of countries in which entity operates | country | 36 | 36 | ||
Company’s product offering in number of counties (over) | country | 50 | 50 | ||
Number of significant acquisitions | acquisition | 2 | 2 | ||
Number of operating segments | segment | 2 | |||
Number of non-operating segments | segment | 1 | |||
Dividends to stockholders | $ 90.1 | $ 30.3 | ||
Distribution from non controlling interest | $ 247.8 | $ 83.4 | ||
ITG | ||||
Organization, Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Acquisition value (in dollars per share) | $ / shares | $ 30.30 | $ 30.30 | ||
Total cash consideration | $ 1,000 | |||
Virtu Financial | ||||
Organization, Consolidation And Presentation Of Financial Statements [Line Items] | ||||
Ownership interest | 62.60% | 62.60% |
Sale of MATCHNow - Narrative (D
Sale of MATCHNow - Narrative (Details) - USD ($) | Aug. 04, 2020 | May 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total sale proceeds received | $ 0 | $ 60,592,000 | |||
MATCHNow | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment | $ 0 | ||||
MATCHNow | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Percentage of interests disposed | 100.00% | ||||
Total sale proceeds received | $ 60,592,000 | ||||
Contingent consideration (up to) | 23,000,000 | ||||
Transaction costs | 2,453,000 | ||||
Gain on sale of MATCHNow | $ 58,652,000 |
Sale of MATCHNow - Summary of t
Sale of MATCHNow - Summary of the Carrying Value of MATCHNow and Gain on Sale (Details) - USD ($) $ in Thousands | Aug. 04, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total sale proceeds received | $ 0 | $ 60,592 | |
Gain on sale of MATCHNow, net of transaction costs | $ 0 | $ 58,652 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | MATCHNow | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total sale proceeds received | $ 60,592 | ||
Total carrying value of MATCHNow as of MATCHNow Closing Date | (1,940) | ||
Gain on sale of MATCHNow | 58,652 | ||
Transaction costs | (2,453) | ||
Gain on sale of MATCHNow, net of transaction costs | $ 56,199 |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||||||
Income before income taxes and noncontrolling interest | $ 145,099 | $ 252,515 | $ 769,887 | $ 1,123,272 | ||||
Provision for income taxes | 21,961 | 52,807 | 128,611 | 200,044 | ||||
Net income | 123,138 | $ 108,907 | $ 409,232 | 199,708 | $ 335,285 | $ 388,238 | 641,276 | 923,228 |
Noncontrolling interest | (52,631) | (82,999) | (268,454) | (386,311) | ||||
Net income available for common stockholders | $ 70,507 | $ 116,709 | $ 372,822 | $ 536,917 |
Earnings per Share - Basic (Det
Earnings per Share - Basic (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Basic earnings (loss) per share: | ||||
Net income available for common stockholders | $ 70,507 | $ 116,709 | $ 372,822 | $ 536,917 |
Less: Dividends and undistributed earnings allocated to participating securities | (2,222) | (3,417) | (10,335) | (14,210) |
Net income available for common stockholders, net of dividends and undistributed earnings allocated to participating securities | $ 68,285 | $ 113,292 | $ 362,487 | $ 522,707 |
Weighted average shares of common stock outstanding: | ||||
Class A (in shares) | 115,770,457 | 122,686,931 | 119,148,571 | 121,328,895 |
Basic earnings (loss) per share (in dollars per share) | $ 0.59 | $ 0.92 | $ 3.04 | $ 4.31 |
Class A common stock | ||||
Weighted average shares of common stock outstanding: | ||||
Class A (in shares) | 115,770,457 | 122,686,931 | 119,148,571 | 121,328,895 |
Earnings per Share - Diluted (D
Earnings per Share - Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Diluted earnings (loss) per share: | ||||
Net income available for common stockholders, net of dividends and undistributed earnings allocated to participating securities | $ 68,285 | $ 113,292 | $ 362,487 | $ 522,707 |
Weighted average shares of common stock outstanding: | ||||
Issued and outstanding (in shares) | 115,770,457 | 122,686,931 | 119,148,571 | 121,328,895 |
Weighted average shares of common stock outstanding (in shares) | 116,623,115 | 123,772,005 | 120,373,160 | 121,939,839 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.59 | $ 0.92 | $ 3.01 | $ 4.29 |
Class A common stock | ||||
Weighted average shares of common stock outstanding: | ||||
Issued and outstanding (in shares) | 115,770,457 | 122,686,931 | 119,148,571 | 121,328,895 |
Issuable pursuant to amended and restated 2015 management incentive plan, amended and restated investment technology group, inc. 2007 omnibus equity compensation plan, and warrants issued in connection with the founder member loan (in shares) | 852,657 | 1,085,074 | 1,224,589 | 610,944 |
Weighted average shares of common stock outstanding (in shares) | 116,623,114 | 123,772,005 | 120,373,160 | 121,939,839 |
Tax Receivable Agreements (Deta
Tax Receivable Agreements (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||
Apr. 30, 2021 | Mar. 31, 2020 | Sep. 30, 2018 | Feb. 28, 2017 | Sep. 30, 2021 | Dec. 31, 2020 | |
Tax Receivable Agreements [Abstract] | ||||||
First payment made | $ 16,500 | $ 13,300 | $ 12,400 | $ 7,000 | ||
Minimum tax receivable agreement obligation over the agreed period | $ 900 | |||||
Maximum tax receivable agreement obligation over the agreed period | $ 21,700 | |||||
Period over which the obligations are to be settled | 15 years | |||||
Deferred tax assets | $ 184,300 | $ 199,100 | ||||
Tax receivable agreement obligations | $ 254,660 | $ 271,165 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Number of operating segments | segment | 2 | ||||
Number of non-operating segments | segment | 1 | ||||
Goodwill | $ 1,148,926,000 | $ 1,148,926,000 | $ 1,148,926,000 | ||
Goodwill impairment | 0 | $ 0 | 0 | $ 0 | |
Intangible assets | 402,912,000 | 402,912,000 | $ 454,499,000 | ||
Amortization expense relating to finite-lived intangible assets | $ 16,933,000 | $ 18,265,000 | $ 53,087,000 | $ 56,177,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill [Line Items] | ||
Goodwill | $ 1,148,926 | $ 1,148,926 |
Operating Segments | Market Making | ||
Goodwill [Line Items] | ||
Goodwill | 755,292 | 755,292 |
Operating Segments | Execution Services | ||
Goodwill [Line Items] | ||
Goodwill | 393,634 | 393,634 |
Corporate | ||
Goodwill [Line Items] | ||
Goodwill | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Acquired Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (236,581) | $ (183,494) |
Gross Carrying Amount | 639,493 | 637,993 |
Net Carrying Amount | 402,912 | 454,499 |
Exchange memberships | ||
Acquired Intangible Assets [Line Items] | ||
Exchange memberships | 3,998 | 3,998 |
Customer relationships | ||
Acquired Intangible Assets [Line Items] | ||
Gross Carrying Amount | 486,600 | 486,600 |
Accumulated Amortization | (130,182) | (94,299) |
Net Carrying Amount | $ 356,418 | $ 392,301 |
Customer relationships | Minimum | ||
Acquired Intangible Assets [Line Items] | ||
Useful Lives (Years) | 10 years | 10 years |
Customer relationships | Maximum | ||
Acquired Intangible Assets [Line Items] | ||
Useful Lives (Years) | 12 years | 12 years |
Technology | ||
Acquired Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 136,000 | $ 136,000 |
Accumulated Amortization | (97,966) | (82,403) |
Net Carrying Amount | $ 38,034 | $ 53,597 |
Technology | Minimum | ||
Acquired Intangible Assets [Line Items] | ||
Useful Lives (Years) | 1 year | 1 year |
Technology | Maximum | ||
Acquired Intangible Assets [Line Items] | ||
Useful Lives (Years) | 6 years | 6 years |
Favorable occupancy leases | ||
Acquired Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,895 | $ 5,895 |
Accumulated Amortization | (3,433) | (2,839) |
Net Carrying Amount | $ 2,462 | $ 3,056 |
Favorable occupancy leases | Minimum | ||
Acquired Intangible Assets [Line Items] | ||
Useful Lives (Years) | 3 years | 3 years |
Favorable occupancy leases | Maximum | ||
Acquired Intangible Assets [Line Items] | ||
Useful Lives (Years) | 15 years | 15 years |
Trade name | ||
Acquired Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,600 | $ 3,600 |
Accumulated Amortization | (3,100) | (2,200) |
Net Carrying Amount | $ 500 | $ 1,400 |
Useful Lives (Years) | 3 years | 3 years |
ETF issuer relationships | ||
Acquired Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 950 | $ 950 |
Accumulated Amortization | (950) | (877) |
Net Carrying Amount | $ 0 | $ 73 |
Useful Lives (Years) | 9 years | 9 years |
ETF buyer relationships | ||
Acquired Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 950 | $ 950 |
Accumulated Amortization | (950) | (876) |
Net Carrying Amount | $ 0 | $ 74 |
Useful Lives (Years) | 9 years | 9 years |
Other | ||
Acquired Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,500 | $ 0 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | $ 1,500 | $ 0 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Expects Amortization Expense (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2021 | $ 16,580 |
2022 | 64,852 |
2023 | 63,960 |
2024 | 50,845 |
2025 | 47,879 |
2026 | $ 47,879 |
Receivables from_Payables to _3
Receivables from/Payables to Broker-Dealers and Clearing Organizations (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Due from prime brokers | $ 557,316 | $ 697,293 |
Deposits with clearing organizations | 181,987 | 216,962 |
Net equity with futures commission merchants | 239,697 | 248,943 |
Unsettled trades with clearing organizations | 3,380 | 118,777 |
Securities failed to deliver | 444,138 | 372,965 |
Commissions and fees | 25,908 | 29,066 |
Total receivables from broker-dealers and clearing organizations | 1,452,426 | 1,684,006 |
Liabilities | ||
Due to prime brokers | 606,840 | 410,772 |
Net equity with futures commission merchants | 69,147 | 77,257 |
Unsettled trades with clearing organizations | 113,250 | 228,070 |
Securities failed to receive | 304,598 | 156,804 |
Commissions and fees | 1,136 | 3,543 |
Total payables to broker-dealers and clearing organizations | 1,094,971 | 876,446 |
Outstanding principal balance | $ 202,500 | $ 134,700 |
Collateralized Transactions (De
Collateralized Transactions (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Securities received as collateral: | ||
Securities borrowed | $ 1,221,032 | $ 1,374,266 |
Securities purchased under agreements to resell | 170,194 | 22,866 |
Securities received as collateral | 1,391,226 | 1,397,132 |
Financial instruments owned and pledged | 959,056 | 746,539 |
Equities | ||
Securities received as collateral: | ||
Financial instruments owned and pledged | 947,661 | 734,024 |
Exchange traded notes | ||
Securities received as collateral: | ||
Financial instruments owned and pledged | $ 11,395 | $ 12,515 |
Borrowings - Short-term Borrowi
Borrowings - Short-term Borrowings, net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Short-term Debt [Line Items] | ||
Borrowing Outstanding | $ 314,695 | $ 65,073 |
Deferred Debt Issuance Cost | (1,881) | (387) |
Short-term Borrowings, net | 312,814 | 64,686 |
Short-term bank loans | ||
Short-term Debt [Line Items] | ||
Borrowing Outstanding | 136,695 | 28,673 |
Deferred Debt Issuance Cost | 0 | 0 |
Short-term Borrowings, net | 136,695 | 28,673 |
Broker-dealer credit facilities | ||
Short-term Debt [Line Items] | ||
Borrowing Outstanding | 178,000 | 36,400 |
Deferred Debt Issuance Cost | (1,881) | (387) |
Short-term Borrowings, net | $ 176,119 | $ 36,013 |
Borrowings - Broker-Dealer Cred
Borrowings - Broker-Dealer Credit Facilities (Details) | Mar. 10, 2020USD ($) | Mar. 02, 2020 | Sep. 30, 2021USD ($)debt_instrumentborrowing_base | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Mar. 20, 2020USD ($) |
Line of Credit Facility [Line Items] | ||||||
Number of borrowing bases | borrowing_base | 2 | |||||
Commitment fee (as a percent) | 0.50% | |||||
Broker-dealer credit facilities | ||||||
Line of Credit Facility [Line Items] | ||||||
Number of secured credit facilities | debt_instrument | 2 | |||||
Maximum borrowing capacity | $ 600,000,000 | |||||
Commitment fee (as a percent) | 0.50% | |||||
Financing Available | $ 1,000,000,000 | $ 1,000,000,000 | ||||
Broker-dealer credit facilities | Borrowing Base A Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 600,000,000 | |||||
Broker-dealer credit facilities | Borrowing Base A Loan | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate margin (as a percent) | 1.25% | |||||
Broker-dealer credit facilities | Borrowing Base B Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 200,000,000 | |||||
Broker-dealer credit facilities | Borrowing Base B Loan | LIBOR | ||||||
Line of Credit Facility [Line Items] | ||||||
Interest rate margin (as a percent) | 2.50% | |||||
Broker-dealer credit facility on an uncommitted basis | ||||||
Line of Credit Facility [Line Items] | ||||||
Number of secured credit facilities | debt_instrument | 1 | |||||
Maximum borrowing capacity | $ 400,000,000 | |||||
Financing Available | $ 400,000,000 | $ 400,000,000 | ||||
Interest rate | 1.25% | 1.25% | ||||
Demand Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Financing Available | $ 20,000,000 | |||||
Repayment term | 90 days | |||||
Interest rate | 10.00% | |||||
Stated interest rate increase | 2.00% | |||||
Founder Member Loan Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 300,000,000 |
Borrowings - Broker-Dealer Cr_2
Borrowings - Broker-Dealer Credit Facilities Carrying Values, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Borrowing Outstanding | $ 1,631,224 | |
Deferred Debt Issuance Cost | (1,881) | $ (387) |
Outstanding Borrowings, net | $ 1,604,062 | $ 1,639,280 |
Uncommitted facility | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 1.25% | 1.25% |
Financing Available | $ 400,000 | $ 400,000 |
Borrowing Outstanding | 178,000 | 36,400 |
Deferred Debt Issuance Cost | (1,881) | (387) |
Outstanding Borrowings, net | $ 176,119 | $ 36,013 |
Committed facility | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 2.61% | 1.40% |
Financing Available | $ 600,000 | $ 600,000 |
Borrowing Outstanding | 0 | 0 |
Deferred Debt Issuance Cost | 0 | 0 |
Outstanding Borrowings, net | 0 | 0 |
Broker-dealer credit facilities | ||
Line of Credit Facility [Line Items] | ||
Financing Available | 1,000,000 | 1,000,000 |
Borrowing Outstanding | 178,000 | 36,400 |
Deferred Debt Issuance Cost | (1,881) | (387) |
Outstanding Borrowings, net | $ 176,119 | $ 36,013 |
Borrowings - Interest Expense o
Borrowings - Interest Expense on Broker-Dealer Facilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Line of Credit Facility [Line Items] | ||||
Interest expense | $ 20,179 | $ 20,358 | $ 59,784 | $ 67,764 |
Uncommitted facility | ||||
Line of Credit Facility [Line Items] | ||||
Interest expense | 540 | 244 | 1,790 | 1,007 |
Committed facility | ||||
Line of Credit Facility [Line Items] | ||||
Interest expense | 0 | 71 | 57 | 433 |
Demand Loan | ||||
Line of Credit Facility [Line Items] | ||||
Interest expense | 0 | 0 | 0 | 211 |
Broker-dealer credit facilities | ||||
Line of Credit Facility [Line Items] | ||||
Interest expense | $ 540 | $ 315 | $ 1,847 | $ 1,651 |
Borrowings - Short-Term Bank Lo
Borrowings - Short-Term Bank Loans (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Short-term bank loans | $ 136.7 | $ 28.7 |
Weighted average interest rate | 1.20% | 2.40% |
Borrowings - Prime Brokerage Cr
Borrowings - Prime Brokerage Credit Facilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | |||||
Weighted Average Interest Rate | 1.20% | 1.20% | 2.40% | ||
Borrowing Outstanding | $ 1,631,224 | $ 1,631,224 | |||
Interest expense | $ 20,179 | $ 20,358 | $ 59,784 | $ 67,764 | |
Short-Term Credit Facilities | |||||
Short-term Debt [Line Items] | |||||
Weighted Average Interest Rate | 2.78% | 2.78% | 2.77% | ||
Financing Available | $ 616,000 | $ 616,000 | $ 616,000 | ||
Borrowing Outstanding | 202,480 | 202,480 | $ 134,664 | ||
Interest expense | $ 1,400 | $ 1,200 | $ 3,500 | $ 3,800 |
Borrowings - Long-Term Borrowin
Borrowings - Long-Term Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Outstanding Principal | $ 1,631,224 | |
Deferred Debt Issuance Cost | (1,881) | $ (387) |
Outstanding Borrowings, net | $ 1,604,062 | $ 1,639,280 |
SBI Bonds | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 5.00% | 5.00% |
Outstanding Principal | $ 31,450 | $ 33,898 |
Discount | 0 | 0 |
Deferred Debt Issuance Cost | (26) | (40) |
Outstanding Borrowings, net | 31,424 | 33,858 |
Total Long-term borrowings | ||
Line of Credit Facility [Line Items] | ||
Outstanding Principal | 1,631,224 | 1,670,410 |
Discount | (3,949) | (4,723) |
Deferred Debt Issuance Cost | (23,213) | (26,407) |
Outstanding Borrowings, net | $ 1,604,062 | $ 1,639,280 |
Senior Secured Credit Facility | Senior Secured Second Lien Notes | ||
Line of Credit Facility [Line Items] | ||
Interest Rate | 3.08% | 3.15% |
Outstanding Principal | $ 1,599,774 | $ 1,636,512 |
Discount | (3,949) | (4,723) |
Deferred Debt Issuance Cost | (23,187) | (26,367) |
Outstanding Borrowings, net | $ 1,572,638 | $ 1,605,422 |
Borrowings - Credit Agreement (
Borrowings - Credit Agreement (Details) - USD ($) | Mar. 02, 2020 | Mar. 01, 2019 | Jan. 31, 2020 | Oct. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Apr. 30, 2021 | Dec. 31, 2020 | Oct. 09, 2019 |
Debt Instrument [Line Items] | ||||||||||
Commitment fee (as a percent) | 0.50% | |||||||||
Outstanding principal amount | $ 1,631,224,000 | |||||||||
Fixed interest rate percentage | 4.30% | |||||||||
Committed facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding principal amount | 0 | $ 0 | ||||||||
Amended Credit Agreement | LIBOR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||||||
Amended Credit Agreement | Overnight Bank Funding Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 0.50% | |||||||||
Amended Credit Agreement | LIBOR, Eurodollar | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 1.00% | |||||||||
Amended Credit Agreement | Scenario 1 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate floor | 1.00% | |||||||||
Amended Credit Agreement | Scenario 1 | Interest Rate Floor | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 2.00% | |||||||||
Amended Credit Agreement | Scenario 2 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate floor | 0.00% | |||||||||
Amended Credit Agreement | Scenario 2 | Interest Rate Floor | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 3.00% | |||||||||
Senior Secured Second Lien Notes | Scenario 1 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee stepdown (as a percent) | 0.375% | |||||||||
Senior Secured Second Lien Notes | Scenario 2 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee stepdown (as a percent) | 0.25% | |||||||||
Senior Secured First Lien Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt amortization, percentage of original aggregate principal amount | 1.00% | |||||||||
VFH | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from borrowings | $ 404,500,000 | |||||||||
VFH | Committed facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 50,000,000 | |||||||||
Outstanding principal amount | 0 | $ 0 | ||||||||
VFH | Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 5,000,000 | |||||||||
VFH | Swingline Subfacility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | 5,000,000 | |||||||||
Acquisition Borrower | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Proceeds from borrowings | 1,095,000,000 | |||||||||
Term Loan | First Lien Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 1,500,000,000 | |||||||||
Outstanding principal amount | $ 1,600,000,000 | |||||||||
Term Loan | VFH | First Lien Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 525,000,000 | $ 525,000,000 | ||||||||
Interest rate swap | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Derivative contract term | 5 years | 5 years | 5 years | |||||||
Derivative, notional amount | $ 1,000,000,000 | $ 525,000,000 | ||||||||
Fixed interest rate percentage | 4.50% | |||||||||
January 2020 Interest Rate Swap | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Derivative contract term | 5 years | |||||||||
Derivative, notional amount | $ 1,000,000,000 | |||||||||
Fixed interest rate percentage | 4.40% | 4.60% | ||||||||
January 2020 Interest Rate Swap | Term Loan | VFH | First Lien Term Loan Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 1,000,000,000 |
Borrowings - SBI Bonds (Details
Borrowings - SBI Bonds (Details) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021JPY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2020JPY (¥) | Jul. 25, 2016USD ($) | Jul. 25, 2016JPY (¥) | |
Debt Instrument [Line Items] | |||||||||
Outstanding principal amount | $ 1,631,224,000 | $ 1,631,224,000 | |||||||
SBI Bonds | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding principal amount | 31,450,000 | 31,450,000 | $ 33,898,000 | ||||||
VFH | SBI Bonds | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount | $ 33,100,000 | ¥ 3,500,000,000 | |||||||
Outstanding principal amount | 31,500,000 | 31,500,000 | ¥ 3,500,000,000 | $ 33,900,000 | ¥ 3,500,000,000 | ||||
Gain (loss) due to change in currency rates | $ 100,000 | $ (800,000) | $ 2,400,000 | $ (1,000,000) |
Borrowings - Future Minimum Pri
Borrowings - Future Minimum Principal Payments (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Debt Disclosure [Abstract] | |
Remainder of 2021 | $ 0 |
2022 | 0 |
2023 | 31,450 |
2024 | 0 |
2025 | 0 |
Thereafter | 1,599,774 |
Total principal of long-term borrowings | $ 1,631,224 |
Financial Assets and Liabilit_3
Financial Assets and Liabilities - Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Assets | ||
Financial instruments owned, at fair value | $ 3,018,838 | $ 2,369,192 |
Financial instruments owned, at fair value, counterparty and cash collateral netting | (300,399) | (291,964) |
Financial instruments owned, pledged as collateral | 959,056 | 746,539 |
Other Assets | 87,926 | 68,316 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 2,871,649 | 2,923,708 |
Financial instruments sold, not yet purchased, at fair value, counterparty and cash collateral netting | (308,611) | (292,870) |
Payables to broker-dealers and clearing organizations | 1,094,971 | 876,446 |
Interest rate swap | ||
Liabilities | ||
Payables to broker-dealers and clearing organizations | 43,608 | 63,513 |
Equity securities | ||
Assets | ||
Financial instruments owned, at fair value | 2,553,817 | 1,955,589 |
Financial instruments owned, pledged as collateral | 947,661 | 734,024 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 2,161,140 | 2,445,050 |
U.S. and Non-U.S. government obligations | ||
Assets | ||
Financial instruments owned, at fair value | 236,072 | 199,782 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 298,744 | 103,157 |
Corporate Bonds | ||
Assets | ||
Financial instruments owned, at fair value | 201,086 | 135,518 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 349,299 | 358,734 |
Exchange traded notes | ||
Assets | ||
Financial instruments owned, at fair value | 8,712 | 19,827 |
Financial instruments owned, pledged as collateral | 11,395 | 12,515 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 5,585 | 7,431 |
Equity investment | ||
Assets | ||
Other Assets | 85,317 | 66,030 |
Exchange stock | ||
Assets | ||
Other Assets | 2,609 | 2,286 |
Currency forwards | ||
Assets | ||
Financial instruments owned, at fair value | 10,831 | 49,396 |
Financial instruments owned, at fair value, counterparty and cash collateral netting | (300,399) | (291,964) |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 7,741 | 95 |
Financial instruments sold, not yet purchased, at fair value, counterparty and cash collateral netting | (308,611) | (292,870) |
Options | ||
Assets | ||
Financial instruments owned, at fair value | 8,320 | 9,080 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 49,140 | 9,241 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Financial instruments owned, at fair value | 661,117 | 922,393 |
Financial instruments owned, pledged as collateral | 581,867 | 496,945 |
Other Assets | 2,609 | 2,286 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 1,672,042 | 1,399,496 |
Payables to broker-dealers and clearing organizations | 532,533 | 3,517 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swap | ||
Liabilities | ||
Payables to broker-dealers and clearing organizations | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | ||
Assets | ||
Financial instruments owned, at fair value | 436,245 | 761,484 |
Financial instruments owned, pledged as collateral | 576,478 | 496,943 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 1,336,070 | 1,307,082 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. and Non-U.S. government obligations | ||
Assets | ||
Financial instruments owned, at fair value | 216,125 | 151,723 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 285,997 | 83,173 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Bonds | ||
Assets | ||
Financial instruments owned, at fair value | 0 | 0 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Exchange traded notes | ||
Assets | ||
Financial instruments owned, at fair value | 427 | 106 |
Financial instruments owned, pledged as collateral | 5,389 | 2 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 835 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity investment | ||
Assets | ||
Other Assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Exchange stock | ||
Assets | ||
Other Assets | 2,609 | 2,286 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Currency forwards | ||
Assets | ||
Financial instruments owned, at fair value | 0 | 0 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Options | ||
Assets | ||
Financial instruments owned, at fair value | 8,320 | 9,080 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 49,140 | 9,241 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Financial instruments owned, at fair value | 2,658,120 | 1,738,763 |
Financial instruments owned, pledged as collateral | 377,189 | 249,594 |
Other Assets | 0 | 0 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 1,508,218 | 1,817,082 |
Payables to broker-dealers and clearing organizations | 562,438 | 872,929 |
Significant Other Observable Inputs (Level 2) | Interest rate swap | ||
Liabilities | ||
Payables to broker-dealers and clearing organizations | 43,608 | 63,513 |
Significant Other Observable Inputs (Level 2) | Equity securities | ||
Assets | ||
Financial instruments owned, at fair value | 2,117,572 | 1,194,105 |
Financial instruments owned, pledged as collateral | 371,183 | 237,081 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 825,070 | 1,137,968 |
Significant Other Observable Inputs (Level 2) | U.S. and Non-U.S. government obligations | ||
Assets | ||
Financial instruments owned, at fair value | 19,947 | 48,059 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 12,747 | 19,984 |
Significant Other Observable Inputs (Level 2) | Corporate Bonds | ||
Assets | ||
Financial instruments owned, at fair value | 201,086 | 135,518 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 349,299 | 358,734 |
Significant Other Observable Inputs (Level 2) | Exchange traded notes | ||
Assets | ||
Financial instruments owned, at fair value | 8,285 | 19,721 |
Financial instruments owned, pledged as collateral | 6,006 | 12,513 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 4,750 | 7,431 |
Significant Other Observable Inputs (Level 2) | Equity investment | ||
Assets | ||
Other Assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Exchange stock | ||
Assets | ||
Other Assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Currency forwards | ||
Assets | ||
Financial instruments owned, at fair value | 311,230 | 341,360 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 316,352 | 292,965 |
Significant Other Observable Inputs (Level 2) | Options | ||
Assets | ||
Financial instruments owned, at fair value | 0 | 0 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Financial instruments owned, at fair value | 0 | 0 |
Financial instruments owned, pledged as collateral | 0 | 0 |
Other Assets | 85,317 | 66,030 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Payables to broker-dealers and clearing organizations | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Interest rate swap | ||
Liabilities | ||
Payables to broker-dealers and clearing organizations | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Equity securities | ||
Assets | ||
Financial instruments owned, at fair value | 0 | 0 |
Financial instruments owned, pledged as collateral | 0 | 0 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. and Non-U.S. government obligations | ||
Assets | ||
Financial instruments owned, at fair value | 0 | 0 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate Bonds | ||
Assets | ||
Financial instruments owned, at fair value | 0 | 0 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Exchange traded notes | ||
Assets | ||
Financial instruments owned, at fair value | 0 | 0 |
Financial instruments owned, pledged as collateral | 0 | 0 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Equity investment | ||
Assets | ||
Other Assets | 85,317 | 66,030 |
Significant Unobservable Inputs (Level 3) | Exchange stock | ||
Assets | ||
Other Assets | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Currency forwards | ||
Assets | ||
Financial instruments owned, at fair value | 0 | 0 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Options | ||
Assets | ||
Financial instruments owned, at fair value | 0 | 0 |
Liabilities | ||
Financial instruments sold, not yet purchased, at fair value | $ 0 | $ 0 |
Financial Assets and Liabilit_4
Financial Assets and Liabilities - Fair Value Inputs (Details) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 85,317 | $ 66,030 |
Minimum | Discounted cash flow | Estimated revenue growth | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.024 | (0.090) |
Minimum | Discounted cash flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.144 | 0.144 |
Minimum | Market | Future enterprise value/ EBIDTA ratio | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.00098 | 0.00122 |
Maximum | Discounted cash flow | Estimated revenue growth | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.227 | 0.390 |
Maximum | Discounted cash flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.144 | 0.144 |
Maximum | Market | Future enterprise value/ EBIDTA ratio | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.00445 | 0.00219 |
Weighted Average | Discounted cash flow | Estimated revenue growth | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.085 | 0.096 |
Weighted Average | Discounted cash flow | Discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.144 | 0.144 |
Weighted Average | Market | Future enterprise value/ EBIDTA ratio | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Measurement input | 0.00172 | 0.00138 |
Financial Assets and Liabilit_5
Financial Assets and Liabilities - Level 3 financial instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 78,313 | $ 51,599 | $ 66,030 | $ 46,245 |
Purchases | 0 | 0 | 0 | 0 |
Total realized and unrealized gains / (losses) | 7,004 | 13,104 | 19,287 | 18,458 |
Net Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Settlement | 0 | 0 | 0 | 0 |
Ending balance | 85,317 | 64,703 | 85,317 | 64,703 |
Change in net unrealized gains / (losses) on investments still held at end of period | 7,004 | 13,104 | 19,287 | 18,458 |
Equity investment | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 78,313 | 51,599 | 66,030 | 46,245 |
Purchases | 0 | 0 | 0 | 0 |
Total realized and unrealized gains / (losses) | 7,004 | 13,104 | 19,287 | 18,458 |
Net Transfers into (out of) Level 3 | 0 | 0 | 0 | 0 |
Settlement | 0 | 0 | 0 | 0 |
Ending balance | 85,317 | 64,703 | 85,317 | 64,703 |
Change in net unrealized gains / (losses) on investments still held at end of period | $ 7,004 | $ 13,104 | $ 19,287 | $ 18,458 |
Financial Assets and Liabilit_6
Financial Assets and Liabilities - Not Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash restricted or segregated under regulations and other | $ 70,477 | $ 117,446 |
Receivables from broker-dealers and clearing organizations | 1,452,426 | 1,684,006 |
Receivables from customers | 414,244 | 214,478 |
Other assets | 303,194 | 317,747 |
Liabilities | ||
Payables to broker-dealers and clearing organizations | 1,094,971 | 876,446 |
Payables to customers | 182,939 | 118,826 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets | ||
Cash and cash equivalents | 683,836 | 889,559 |
Cash restricted or segregated under regulations and other | 70,477 | 117,446 |
Securities borrowed | 0 | 0 |
Securities purchased under agreements to resell | 0 | 0 |
Receivables from broker-dealers and clearing organizations | 415 | 173,578 |
Receivables from customers | 0 | 0 |
Other assets | 0 | 0 |
Total Assets | 754,728 | 1,180,583 |
Liabilities | ||
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Securities loaned | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Payables to broker-dealers and clearing organizations | 532,533 | 3,517 |
Payables to customers | 0 | 0 |
Other liabilities | 0 | 0 |
Total Liabilities | 532,533 | 3,517 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Cash restricted or segregated under regulations and other | 0 | 0 |
Securities borrowed | 1,277,601 | 1,425,016 |
Securities purchased under agreements to resell | 170,194 | 22,866 |
Receivables from broker-dealers and clearing organizations | 1,452,011 | 1,510,428 |
Receivables from customers | 414,244 | 214,478 |
Other assets | 14,427 | 21,735 |
Total Assets | 3,328,477 | 3,194,523 |
Liabilities | ||
Short-term borrowings | 314,695 | 65,073 |
Long-term borrowings | 1,629,224 | 1,672,456 |
Securities loaned | 1,017,436 | 948,256 |
Securities sold under agreements to repurchase | 583,268 | 461,235 |
Payables to broker-dealers and clearing organizations | 562,438 | 872,929 |
Payables to customers | 182,939 | 118,826 |
Other liabilities | 8,904 | 9,208 |
Total Liabilities | 4,298,904 | 4,147,983 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Cash restricted or segregated under regulations and other | 0 | 0 |
Securities borrowed | 0 | 0 |
Securities purchased under agreements to resell | 0 | 0 |
Receivables from broker-dealers and clearing organizations | 0 | 0 |
Receivables from customers | 0 | 0 |
Other assets | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities | ||
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Securities loaned | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Payables to broker-dealers and clearing organizations | 0 | 0 |
Payables to customers | 0 | 0 |
Other liabilities | 0 | 0 |
Total Liabilities | 0 | 0 |
Reported Value Measurement | ||
Assets | ||
Cash and cash equivalents | 683,836 | 889,559 |
Cash restricted or segregated under regulations and other | 70,477 | 117,446 |
Securities borrowed | 1,277,601 | 1,425,016 |
Securities purchased under agreements to resell | 170,194 | 22,866 |
Receivables from broker-dealers and clearing organizations | 1,452,426 | 1,684,006 |
Receivables from customers | 414,244 | 214,478 |
Other assets | 14,427 | 21,735 |
Total Assets | 4,083,205 | 4,375,106 |
Liabilities | ||
Short-term borrowings | 312,814 | 64,686 |
Long-term borrowings | 1,604,062 | 1,639,280 |
Securities loaned | 1,017,436 | 948,256 |
Securities sold under agreements to repurchase | 583,268 | 461,235 |
Payables to broker-dealers and clearing organizations | 1,094,971 | 876,446 |
Payables to customers | 182,939 | 118,826 |
Other liabilities | 8,904 | 9,208 |
Total Liabilities | 4,804,394 | 4,117,937 |
Estimate of Fair Value Measurement | ||
Assets | ||
Cash and cash equivalents | 683,836 | 889,559 |
Cash restricted or segregated under regulations and other | 70,477 | 117,446 |
Securities borrowed | 1,277,601 | 1,425,016 |
Securities purchased under agreements to resell | 170,194 | 22,866 |
Receivables from broker-dealers and clearing organizations | 1,452,426 | 1,684,006 |
Receivables from customers | 414,244 | 214,478 |
Other assets | 14,427 | 21,735 |
Total Assets | 4,083,205 | 4,375,106 |
Liabilities | ||
Short-term borrowings | 314,695 | 65,073 |
Long-term borrowings | 1,629,224 | 1,672,456 |
Securities loaned | 1,017,436 | 948,256 |
Securities sold under agreements to repurchase | 583,268 | 461,235 |
Payables to broker-dealers and clearing organizations | 1,094,971 | 876,446 |
Payables to customers | 182,939 | 118,826 |
Other liabilities | 8,904 | 9,208 |
Total Liabilities | $ 4,831,437 | $ 4,151,500 |
Financial Assets and Liabilit_7
Financial Assets and Liabilities - Netting of Certain Financial Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Securities borrowed | ||
Gross Amounts of Recognized Assets | $ 1,277,601 | $ 1,425,016 |
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition | 1,277,601 | 1,425,016 |
Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition | ||
Financial Instrument Collateral | (1,221,032) | (1,374,266) |
Counterparty Netting/ Cash Collateral | (8,097) | (9,686) |
Net Amount | 48,472 | 41,064 |
Securities purchased under agreements to resell | ||
Gross Amounts of Recognized Assets | 170,194 | 22,866 |
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition | 170,194 | 22,866 |
Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition | ||
Financial Instrument Collateral | (170,194) | (22,866) |
Counterparty Netting/ Cash Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Trading assets, at fair value: | ||
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | 0 | 0 |
Total | ||
Gross Amounts of Recognized Assets | 1,767,345 | 1,798,322 |
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | (300,399) | (291,964) |
Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition | 1,466,946 | 1,506,358 |
Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition | ||
Financial Instrument Collateral | (1,391,226) | (1,397,132) |
Counterparty Netting/ Cash Collateral | (16,417) | (18,766) |
Net Amount | 59,303 | 90,460 |
Currency forwards | ||
Securities borrowed | ||
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | (300,399) | (291,964) |
Trading assets, at fair value: | ||
Gross Amounts of Recognized Assets | 311,230 | 341,360 |
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | (300,399) | (291,964) |
Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition | 10,831 | 49,396 |
Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition | ||
Financial Instrument Collateral | 0 | 0 |
Counterparty Netting/ Cash Collateral | 0 | 0 |
Net Amount | 10,831 | 49,396 |
Options | ||
Securities borrowed | ||
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | 0 | 0 |
Trading assets, at fair value: | ||
Gross Amounts of Recognized Assets | 8,320 | 9,080 |
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts of Assets Presented in the Condensed Consolidated Statements of Financial Condition | 8,320 | 9,080 |
Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition | ||
Financial Instrument Collateral | 0 | 0 |
Counterparty Netting/ Cash Collateral | (8,320) | (9,080) |
Net Amount | $ 0 | $ 0 |
Financial Assets and Liabilit_8
Financial Assets and Liabilities - Netting of Certain Financial Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Securities loaned | ||
Gross Amounts of Recognized Liabilities | $ 1,017,436 | $ 948,256 |
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition | 1,017,436 | 948,256 |
Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition | ||
Financial Instruments | (995,181) | (921,593) |
Counterparty Netting/ Cash Collateral | (12,655) | (17,800) |
Net Amount | 9,600 | 8,863 |
Securities sold under agreements to repurchase | ||
Gross Amounts of Recognized Liabilities | 583,268 | 461,235 |
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition | 583,268 | 461,235 |
Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition | ||
Financial Instruments | (583,268) | (461,235) |
Counterparty Netting/ Cash Collateral | 0 | 0 |
Net Amount | 0 | 0 |
Trading liabilities, at fair value: | ||
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | 0 | 0 |
Total | ||
Gross Amounts of Recognized Liabilities | 2,009,804 | 1,775,210 |
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | (308,611) | (292,870) |
Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition | 1,701,193 | 1,482,340 |
Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition | ||
Financial Instruments | (1,578,449) | (1,382,828) |
Counterparty Netting/ Cash Collateral | (20,975) | (90,042) |
Net Amount | 101,769 | 9,470 |
Interest rate swap | ||
Securities loaned | ||
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | 0 | |
Securities sold under agreements to repurchase | ||
Gross Amounts of Recognized Liabilities | 63,513 | |
Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition | 63,513 | |
Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition | ||
Financial Instruments | 0 | |
Counterparty Netting/ Cash Collateral | (63,162) | |
Net Amount | 351 | |
Trading liabilities, at fair value: | ||
Gross Amounts of Recognized Liabilities | 43,608 | |
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | 0 | |
Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition | 43,608 | |
Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition | ||
Financial Instruments | 0 | |
Counterparty Netting/ Cash Collateral | 0 | |
Net Amount | 43,608 | |
Currency forwards | ||
Securities loaned | ||
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | (308,611) | (292,870) |
Trading liabilities, at fair value: | ||
Gross Amounts of Recognized Liabilities | 316,352 | 292,965 |
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | (308,611) | (292,870) |
Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition | 7,741 | 95 |
Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition | ||
Financial Instruments | 0 | 0 |
Counterparty Netting/ Cash Collateral | 0 | 0 |
Net Amount | 7,741 | 95 |
Options | ||
Securities loaned | ||
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | 0 | 0 |
Trading liabilities, at fair value: | ||
Gross Amounts of Recognized Liabilities | 49,140 | 9,241 |
Amounts Offset in the Condensed Consolidated Statement of Financial Condition | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Statement of Financial Condition | 49,140 | 9,241 |
Amounts Not Offset in the Condensed Consolidated Statements of Financial Condition | ||
Financial Instruments | 0 | 0 |
Counterparty Netting/ Cash Collateral | (8,320) | (9,080) |
Net Amount | $ 40,820 | $ 161 |
Financial Assets and Liabilit_9
Financial Assets and Liabilities - Gross Obligations For Securities Lending Transactions (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | $ 583,268 | $ 461,235 |
Remaining contractual maturity for securities loaned | 1,017,436 | 948,256 |
Overnight and Continuous | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 198,268 | 86,235 |
Remaining contractual maturity for securities loaned | 1,017,436 | 948,256 |
Less than 30 days | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 125,000 | 125,000 |
Remaining contractual maturity for securities loaned | 0 | 0 |
30 - 60 days | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 50,000 | 50,000 |
Remaining contractual maturity for securities loaned | 0 | 0 |
61 - 90 Days | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 160,000 | 200,000 |
Remaining contractual maturity for securities loaned | 0 | 0 |
Greater than 90 days | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 50,000 | 0 |
Remaining contractual maturity for securities loaned | 0 | 0 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 385,000 | 375,000 |
Remaining contractual maturity for securities loaned | 1,017,436 | 948,256 |
Equity securities | Overnight and Continuous | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 0 | 0 |
Remaining contractual maturity for securities loaned | 1,017,436 | 948,256 |
Equity securities | Less than 30 days | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 125,000 | 125,000 |
Remaining contractual maturity for securities loaned | 0 | 0 |
Equity securities | 30 - 60 days | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 50,000 | 50,000 |
Remaining contractual maturity for securities loaned | 0 | 0 |
Equity securities | 61 - 90 Days | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 160,000 | 200,000 |
Remaining contractual maturity for securities loaned | 0 | 0 |
Equity securities | Greater than 90 days | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 50,000 | 0 |
Remaining contractual maturity for securities loaned | 0 | 0 |
U.S. and Non-U.S. government obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 198,268 | 86,235 |
U.S. and Non-U.S. government obligations | Overnight and Continuous | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 198,268 | 86,235 |
U.S. and Non-U.S. government obligations | Less than 30 days | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 0 | 0 |
U.S. and Non-U.S. government obligations | 30 - 60 days | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 0 | 0 |
U.S. and Non-U.S. government obligations | 61 - 90 Days | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | 0 | 0 |
U.S. and Non-U.S. government obligations | Greater than 90 days | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Remaining contractual maturity for securities sold under agreements to repurchase | $ 0 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Equities futures | Derivative instruments not designated as hedging instruments | Receivables from broker-dealers and clearing organizations | ||
Derivatives Assets | ||
Fair Value | $ (753) | $ 4,669 |
Notional | 1,371,507 | 2,208,899 |
Equities futures | Derivative instruments not designated as hedging instruments | Payables to broker-dealers and clearing organizations | ||
Derivatives Liabilities | ||
Fair Value | 1,240 | 31 |
Notional | 398,517 | 90,219 |
Commodity futures | Derivative instruments not designated as hedging instruments | Receivables from broker-dealers and clearing organizations | ||
Derivatives Assets | ||
Fair Value | (217) | 173,889 |
Notional | 137,010 | 6,237,389 |
Commodity futures | Derivative instruments not designated as hedging instruments | Payables to broker-dealers and clearing organizations | ||
Derivatives Liabilities | ||
Fair Value | (533,414) | (5,397) |
Notional | 9,633,999 | 27,287 |
Currency futures | Derivative instruments not designated as hedging instruments | Receivables from broker-dealers and clearing organizations | ||
Derivatives Assets | ||
Fair Value | 1,964 | (11,736) |
Notional | 847,313 | 2,823,277 |
Currency futures | Derivative instruments not designated as hedging instruments | Payables to broker-dealers and clearing organizations | ||
Derivatives Liabilities | ||
Fair Value | (6,057) | 3,598 |
Notional | 2,664,776 | 2,269,898 |
Fixed income futures | Derivative instruments not designated as hedging instruments | Receivables from broker-dealers and clearing organizations | ||
Derivatives Assets | ||
Fair Value | 158 | 42 |
Notional | 16,292 | 102,476 |
Fixed income futures | Derivative instruments not designated as hedging instruments | Payables to broker-dealers and clearing organizations | ||
Derivatives Liabilities | ||
Fair Value | 97 | 0 |
Notional | 51,091 | 1,566 |
Options | ||
Derivatives Assets | ||
Fair Value | 8,320 | 9,080 |
Derivatives Liabilities | ||
Fair Value | 49,140 | 9,241 |
Options | Derivative instruments not designated as hedging instruments | Financial instruments owned | ||
Derivatives Assets | ||
Fair Value | 8,320 | 9,080 |
Notional | 934,627 | 746,723 |
Options | Derivative instruments not designated as hedging instruments | Financial instruments sold, not yet purchased | ||
Derivatives Liabilities | ||
Fair Value | 49,140 | 9,241 |
Notional | 936,594 | 736,997 |
Currency forwards | ||
Derivatives Assets | ||
Fair Value | 311,230 | 341,360 |
Derivatives Liabilities | ||
Fair Value | 316,352 | 292,965 |
Currency forwards | Derivative instruments not designated as hedging instruments | Financial instruments owned | ||
Derivatives Assets | ||
Fair Value | 311,230 | 341,360 |
Notional | 28,029,260 | 30,596,681 |
Currency forwards | Derivative instruments not designated as hedging instruments | Financial instruments sold, not yet purchased | ||
Derivatives Liabilities | ||
Fair Value | 316,352 | 292,965 |
Notional | 28,031,821 | 30,572,490 |
Interest rate swap | ||
Derivatives Liabilities | ||
Fair Value | 43,608 | |
Interest rate swap | Derivative instruments designated as hedging instruments | Payables to broker-dealers and clearing organizations | ||
Derivatives Liabilities | ||
Fair Value | 43,608 | 63,513 |
Notional | $ 1,525,000 | $ 1,525,000 |
Derivative Instruments - Gain (
Derivative Instruments - Gain (Loss) From Derivative Instruments (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2019 | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($)instrument | Dec. 31, 2019USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |
Not designated as hedging instruments | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Trading income, net and other, net | $ 44,257,000 | $ 84,129,000 | $ 287,944,000 | $ 326,710,000 | |||
Derivative instruments designed as hedging instruments: | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Other comprehensive income | 4,112,000 | 314,000 | 21,453,000 | (64,425,000) | |||
Futures | Not designated as hedging instruments | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Trading income, net and other, net | 84,875,000 | (12,262,000) | 213,569,000 | 11,440,000 | |||
Currency forwards | Not designated as hedging instruments | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Trading income, net and other, net | (49,599,000) | 62,465,000 | 12,756,000 | 255,044,000 | |||
Options | Not designated as hedging instruments | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Trading income, net and other, net | 9,455,000 | 35,343,000 | 63,016,000 | 61,643,000 | |||
Interest rate swap | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Derivative contract term | 5 years | 5 years | 5 years | ||||
Derivative, notional amount | $ 1,000,000,000 | $ 525,000,000 | |||||
Number of interest rate swaps | instrument | 2 | ||||||
Interest rate swap | Not designated as hedging instruments | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Trading income, net and other, net | (474,000) | (1,417,000) | (1,397,000) | (1,417,000) | |||
Interest rate swap | Derivative instruments designed as hedging instruments: | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Other comprehensive income | $ 4,112,000 | $ 314,000 | $ 21,453,000 | $ (64,425,000) |
Variable Interest Entities- Add
Variable Interest Entities- Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021joint_venture | |
Variable Interest Entity [Line Items] | |
Number of joint ventures considered as VIEs | 4 |
JV building microwave communication networks in US, Europe and Asia | |
Variable Interest Entity [Line Items] | |
Number of joint ventures | 2 |
JV building microwave communication networks in US and Asia | |
Variable Interest Entity [Line Items] | |
Ownership of equity of JV held be each investor (as a percent) | 10.00% |
JV building microwave communication networks in US and Europe | |
Variable Interest Entity [Line Items] | |
Ownership interest | 50.00% |
JV offering derivatives trading technology and execution services | |
Variable Interest Entity [Line Items] | |
Ownership interest | 10.00% |
JV developing a member-owned equities exchange with the goal of increasing competition | |
Variable Interest Entity [Line Items] | |
Ownership interest | 14.10% |
Variable Interest Entities - No
Variable Interest Entities - Nonconsolidated VIEs (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Line Items] | ||
Asset | $ 10,429,477 | $ 9,965,798 |
Liability | 8,628,764 | 8,110,760 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Asset | 30,388 | 28,969 |
Liability | 0 | 0 |
Maximum Exposure to Loss | 30,388 | 28,969 |
VIEs' assets | $ 154,789 | $ 175,547 |
Revenues from Contracts with _3
Revenues from Contracts with Customers (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | $ 135,923,000 | $ 133,853,000 | $ 470,687,000 | $ 452,333,000 | |
Total revenue | 544,344,000 | 656,112,000 | 2,105,881,000 | 2,562,635,000 | |
Revenue related to performance obligations satisfied in previous periods | 500,000 | 600,000 | |||
Revenue related to performance obligation | 49,100,000 | 49,100,000 | $ 57,300,000 | ||
Impairment losses on receivables | 0 | ||||
Deferred revenue related to contracts with customers | 10,000,000 | 10,000,000 | $ 9,300,000 | ||
Revenue recognized | 9,200,000 | 8,600,000 | 23,600,000 | ||
New contract revenue, recognized | 24,400,000 | ||||
Services transferred at a point in time | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 525,805,000 | 637,450,000 | 2,050,334,000 | 2,506,697,000 | |
Services transferred over time | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 18,539,000 | 18,662,000 | 55,547,000 | 55,938,000 | |
Commissions, net | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 102,368,000 | 100,851,000 | 364,111,000 | 343,349,000 | |
Workflow technology | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 23,149,000 | 23,044,000 | 75,572,000 | 78,376,000 | |
Analytics | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 10,406,000 | 9,958,000 | 31,004,000 | 30,608,000 | |
Other sources of revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Other sources of revenue | 408,421,000 | 522,259,000 | 1,635,194,000 | 2,110,302,000 | |
Operating Segments | Market Making | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 8,894,000 | 9,391,000 | 32,111,000 | 9,526,000 | |
Total revenue | 409,290,000 | 474,598,000 | 1,635,555,000 | 2,064,300,000 | |
Operating Segments | Market Making | Services transferred at a point in time | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 409,290,000 | 474,598,000 | 1,635,555,000 | 2,064,300,000 | |
Operating Segments | Market Making | Services transferred over time | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 0 | 0 | 0 | 0 | |
Operating Segments | Market Making | Commissions, net | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 8,894,000 | 9,391,000 | 32,111,000 | 9,526,000 | |
Operating Segments | Market Making | Workflow technology | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Operating Segments | Market Making | Analytics | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Operating Segments | Market Making | Other sources of revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Other sources of revenue | 400,396,000 | 465,207,000 | 1,603,444,000 | 2,054,774,000 | |
Operating Segments | Execution Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 127,029,000 | 124,462,000 | 438,576,000 | 442,807,000 | |
Total revenue | 132,549,000 | 182,680,000 | 459,918,000 | 500,621,000 | |
Operating Segments | Execution Services | Services transferred at a point in time | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 114,010,000 | 164,018,000 | 404,371,000 | 444,683,000 | |
Operating Segments | Execution Services | Services transferred over time | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 18,539,000 | 18,662,000 | 55,547,000 | 55,938,000 | |
Operating Segments | Execution Services | Commissions, net | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 93,474,000 | 91,460,000 | 332,000,000 | 333,823,000 | |
Operating Segments | Execution Services | Workflow technology | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 23,149,000 | 23,044,000 | 75,572,000 | 78,376,000 | |
Operating Segments | Execution Services | Analytics | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 10,406,000 | 9,958,000 | 31,004,000 | 30,608,000 | |
Operating Segments | Execution Services | Other sources of revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Other sources of revenue | 5,520,000 | 58,218,000 | 21,342,000 | 57,814,000 | |
Corporate | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Total revenue | 2,505,000 | (1,166,000) | 10,408,000 | (2,286,000) | |
Corporate | Services transferred at a point in time | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 2,505,000 | (1,166,000) | 10,408,000 | (2,286,000) | |
Corporate | Services transferred over time | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue | 0 | 0 | 0 | 0 | |
Corporate | Commissions, net | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Corporate | Workflow technology | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 | |
Corporate | Analytics | |||||
Disaggregation of Revenue [Line Items] | |||||
Total revenue from contracts with customers | 0 | 0 | 0 | ||
Corporate | Other sources of revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Other sources of revenue | $ 2,505,000 | $ (1,166,000) | $ 10,408,000 | $ (2,286,000) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Tax Credit Carryforward [Line Items] | |||||
Provision for income taxes | $ 21,961 | $ 52,807 | $ 128,611 | $ 200,044 | |
Effective tax rate | 15.10% | 20.90% | 16.70% | 1780.00% | |
Current income taxes receivable | $ 49,800 | $ 49,800 | $ 83,100 | ||
Current taxes payable | 12,600 | 12,600 | 37,900 | ||
Deferred tax asset, state and local operating loss carryforward | 400 | 400 | 400 | ||
Unrecognized tax benefits that would impact effective tax rate | 8,300 | 8,300 | |||
ITG | |||||
Tax Credit Carryforward [Line Items] | |||||
Deferred tax asset, non-U.S. operating loss carryforward | 14,300 | 14,300 | 15,200 | ||
Operating loss carryforwards | 71,600 | 71,600 | 75,100 | ||
Valuation allowance on deferred taxes | 14,300 | 14,300 | 15,100 | ||
KCG | |||||
Tax Credit Carryforward [Line Items] | |||||
Deferred tax asset, non-U.S. operating loss carryforward | 44,900 | 44,900 | 44,900 | ||
Operating loss carryforwards | $ 239,300 | $ 239,300 | $ 239,000 |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating leases | ||
Operating lease right-of-use assets | $ 247,531 | $ 268,864 |
Operating lease liabilities | 292,967 | 315,340 |
Finance leases | ||
Property and equipment, at cost | 18,479 | 36,093 |
Accumulated depreciation | (10,902) | (24,585) |
Finance lease liabilities | $ 7,705 | $ 11,687 |
Finance lease, liability, noncurrent, statement of financial position [extensible list] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
Weighted average remaining lease term | ||
Operating leases | 6 years 8 months 4 days | 6 years 10 months 24 days |
Finance leases | 1 year 8 months 26 days | 2 years |
Weighted average discount rate | ||
Operating leases | 5.49% | 5.67% |
Finance leases | 2.41% | 3.13% |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating lease cost: | ||||
Fixed | $ 18,994 | $ 18,521 | $ 56,772 | $ 55,333 |
Variable | 1,913 | 2,393 | 5,144 | 6,614 |
Impairment of ROU Asset | 0 | 0 | 1,198 | 0 |
Total Operating lease cost | 20,907 | 20,914 | 63,114 | 61,947 |
Sublease income | 4,537 | 4,399 | 13,404 | 11,994 |
Finance lease cost: | ||||
Amortization of ROU Asset | 1,460 | 2,668 | 5,024 | 8,838 |
Interest on lease liabilities | 50 | 97 | 183 | 339 |
Total Finance lease cost | $ 1,510 | $ 2,765 | $ 5,207 | $ 9,177 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 | $ 17,078 | |
2022 | 69,887 | |
2023 | 68,128 | |
2024 | 39,614 | |
2025 | 31,859 | |
2026 and thereafter | 127,472 | |
Total lease payments | 354,038 | |
Less imputed interest | (61,071) | |
Total lease liability | 292,967 | $ 315,340 |
Finance Leases | ||
2021 | 1,468 | |
2022 | 4,441 | |
2023 | 1,818 | |
2024 | 247 | |
2025 | 0 | |
2026 and thereafter | 0 | |
Total lease payments | 7,974 | |
Less imputed interest | (269) | |
Total lease liability | $ 7,705 |
Cash (Details)
Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 683,836 | $ 889,559 | ||
Cash restricted or segregated under regulations and other | 70,477 | 117,446 | ||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ 754,313 | $ 1,007,005 | $ 665,962 | $ 773,280 |
Capital Structure - Additional
Capital Structure - Additional Information (Details) | 9 Months Ended | ||
Sep. 30, 2021voteclassshares | Sep. 30, 2020shares | Dec. 31, 2020shares | |
Class of Stock [Line Items] | |||
Number of classes of common stock | class | 4 | ||
Non-voting common interest units outstanding (in shares) | shares | 4,795,839 | 5,259,713 | |
Number of non-voting common interest units forfeited or repurchased (in shares) | shares | 463,874 | 2,420,239 | |
Virtu Financial | |||
Class of Stock [Line Items] | |||
Ownership interest | 62.60% | ||
Class A common stock and Class C common stock | |||
Class of Stock [Line Items] | |||
Number of votes | vote | 1 | ||
Class B common stock and Class D common stock | |||
Class of Stock [Line Items] | |||
Number of votes | vote | 10 | ||
Class C common stock and class D common stock | Founder | |||
Class of Stock [Line Items] | |||
Ownership interest | 83.00% |
Capital Structure - Amended and
Capital Structure - Amended and Restated 2015 Management Incentive Plan (Details) - 2015 Management Incentive Plan - Class A common stock - shares | Nov. 13, 2020 | Sep. 30, 2017 |
Class of Stock [Line Items] | ||
Number of shares of stock authorized (in shares) | 21,000,000 | |
Service period | 5 years |
Capital Structure - Amended a_2
Capital Structure - Amended and Restated Investment Technology Group, Inc. 2007 Omnibus Equity Compensation Plan (Details) - Assumed Awards - Class A common stock | Mar. 01, 2019shares |
Class of Stock [Line Items] | |
Number of shares of stock authorized (in shares) | 2,497,028 |
Number of shares remaining to be issued (in shares) | 1,230,406 |
Capital Structure - Share Repur
Capital Structure - Share Repurchase Program (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | May 04, 2021 | |
Class of Stock [Line Items] | ||||||||
Stock repurchased during period, value | $ 370 | $ 1,323 | ||||||
Value of shares repurchased | 139,377 | $ 101,419 | $ 79,418 | $ 2,418 | $ 360 | $ 9,801 | $ 337,500 | |
Class A common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Share repurchase authorized amount | $ 470,000 | 470,000 | $ 300,000 | |||||
Stock repurchased during period, value | $ 12,500 | |||||||
Number of shares repurchased (in shares) | 132.5 |
Capital Structure - Employee Ex
Capital Structure - Employee Exchanges (Details) - VFH | 9 Months Ended | |
Sep. 30, 2021shares | Sep. 30, 2020shares | |
Class of Stock [Line Items] | ||
Common stock exchange ratio | 1 | |
Class A common stock | ||
Class of Stock [Line Items] | ||
Issuance of common stock in connection with employee exchanges (in shares) | 405,272 | 2,420,239 |
Capital Structure - Warrant Iss
Capital Structure - Warrant Issuance (Details) $ / shares in Units, $ in Millions | Mar. 20, 2020USD ($)$ / sharesshares |
Class A Common Stock Warrants | |
Class of Warrant or Right [Line Items] | |
Number of shares available for purchase (in shares) | 3,000,000 |
Exercise price of warrants (in dollars per share) | $ / shares | $ 22.98 |
Warrant, number of trading days | 10 days |
Class A Common Stock Warrants, Founder Member Facility | |
Class of Warrant or Right [Line Items] | |
Number of shares available for purchase (in shares) | 10,000,000 |
Warrant, loan outstanding requirement | $ | $ 100 |
Capital Structure - Schedule of
Capital Structure - Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | $ 1,922,822 | $ 1,701,007 | $ 1,855,038 | $ 1,228,936 |
Balance at end of period | 1,800,713 | 1,806,807 | 1,800,713 | 1,806,807 |
AOCI reclassified into earnings over next 12 months | 15,000 | 15,000 | ||
Net change in unrealized cash flow hedges gains (losses) | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (24,952) | (36,710) | (33,444) | 0 |
Amounts recorded in AOCI | (1,612) | (1,797) | (83) | (42,405) |
Amounts reclassified from AOCI to income | 3,803 | 1,948 | 10,766 | 5,846 |
Balance at end of period | (22,761) | (36,559) | (22,761) | (36,559) |
Foreign exchange translation adjustment | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | 5,835 | (2,857) | 7,957 | (647) |
Amounts recorded in AOCI | (4,912) | 4,213 | (7,034) | 2,003 |
Amounts reclassified from AOCI to income | 0 | 0 | 0 | 0 |
Balance at end of period | 923 | 1,356 | 923 | 1,356 |
AOCI attributable to parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Balance at beginning of period | (19,117) | (39,567) | (25,487) | (647) |
Amounts recorded in AOCI | (6,524) | 2,416 | (7,117) | (40,402) |
Amounts reclassified from AOCI to income | 3,803 | 1,948 | 10,766 | 5,846 |
Balance at end of period | $ (21,838) | $ (35,203) | $ (21,838) | $ (35,203) |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Mar. 01, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Increase (decrease) in accrued employee compensation expense | $ 17.7 | |||||
Class A common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 633,938 | 967,526 | ||||
Increase (decrease) in accrued employee compensation expense | $ 6.3 | $ 11.4 | $ 14.4 | |||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee compensation expense | $ 20.5 | |||||
Unrecognized share-based compensation expense | 51.4 | $ 51.4 | $ 37.1 | |||
Weighted average period for compensation expense expected to be recognized | 1 year 1 month 6 days | 1 year | ||||
RSUs | Class A common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee compensation expense | $ 6.7 | $ 9 | $ 25.8 | |||
2015 Management Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 0 | 0 | ||||
2015 Management Incentive Plan | Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Expiration period | 10 years | |||||
2015 Management Incentive Plan | RSUs and RSAs | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Assumed Plan | Class A common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for issuance (in shares) | 2,497,028 | |||||
Invetment Technology Group | Class A common stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for issuance (in shares) | 1,230,406 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Activity in Options (Details) - 2015 Management Incentive Plan - $ / shares | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Options | |||||
Outstanding at beginning of period (in shares) | 2,324,152 | 3,233,779 | 3,233,779 | ||
Granted (in shares) | 0 | 0 | |||
Exercised (in shares) | (446,997) | (807,627) | |||
Forfeited or expired (in shares) | 0 | 0 | |||
Outstanding at end of period (in shares) | 1,877,155 | 2,426,152 | 2,324,152 | 3,233,779 | |
Weighted Average Exercise Price Per Share | |||||
Outstanding at beginning of period (in dollars per share) | $ 19 | $ 18.74 | $ 18.74 | ||
Granted (in dollars per share) | 0 | 0 | |||
Exercised (in dollars per share) | 19 | 17.96 | |||
Forfeited or expired (in dollars per share) | $ 0 | 0 | 0 | ||
Outstanding at end of period (in dollars per share) | $ 19 | $ 19 | $ 19 | $ 18.74 | |
Weighted Average Remaining Contractual Life | |||||
Weighted Average Remaining Contractual Life | 3 years 5 months 26 days | 4 years 5 months 26 days | 4 years 2 months 26 days | 5 years 2 months 26 days | |
Options exercisable, number of options (in shares) | 1,877,155 | 2,426,152 | 2,324,152 | 3,233,779 | |
Options granted, number of options (in shares) | 0 | 0 | |||
Options exercised, number of options exercised (in shares) | (446,997) | (807,627) | |||
Options exercisable, number of options forfeited or expired (in shares) | 0 | 0 | |||
Options exercisable, weighted average exercise price (in dollars per share) | $ 19 | $ 19 | $ 19 | $ 18.74 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Activity in RSUs and RSAs (Details) - 2015 Management Incentive Plan - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
RSUs and RSAs | ||
Number of RSUs and RSAs | ||
Outstanding at beginning of period (in shares) | 3,393,084 | 2,993,489 |
Granted (in shares) | 2,442,953 | 3,300,894 |
Forfeited (in shares) | (191,296) | (391,223) |
Vested (in shares) | (2,032,477) | (2,124,843) |
Outstanding at end of period (in shares) | 3,612,264 | 3,778,317 |
Weighted Average Fair Value | ||
Outstanding at beginning of period (in dollars per share) | $ 21.35 | $ 24.10 |
Granted (in dollars per share) | 27.06 | 17.15 |
Forfeited (in dollars per share) | 22.97 | 17.90 |
Vested (in dollars per share) | 23.27 | 20.40 |
Outstanding at end of period (in dollars per share) | $ 24.05 | $ 20.77 |
RSUs and RSAs, performance-based | ||
Number of RSUs and RSAs | ||
Granted (in shares) | 350,000 |
Regulatory Requirement - Narrat
Regulatory Requirement - Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Virtu Financial Capital Markets Llc | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Minimum capital required to be maintained in connection with the operation of the company's DMM business | $ 1,000,000 | |
Required amount under exchange rules | 1,000,000 | |
Required amount under exchange rules for every 0.1% NYSE transaction dollar volume | $ 75,000 | |
Percentage of NYSE transaction dollar volume | 0.10% | |
VAL | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Cash in special reserve bank accounts for the benefit of customers | $ 60,900,000 | $ 96,200,000 |
Cash in reserve bank accounts for the benefit of proprietary accounts of brokers | $ 8,800,000 | $ 20,400,000 |
Regulatory Requirement - Regula
Regulatory Requirement - Regulatory Capital and Capital Requirements (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Virtu Americas LLC | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory Capital | $ 484,482 | $ 621,253 |
Regulatory Capital Requirement | 1,725 | 2,917 |
Excess Regulatory Capital | 482,757 | 618,336 |
Virtu ITG Canada Corp | ||
Public Utilities, General Disclosures [Line Items] | ||
Deposit funds for trade | 400 | 400 |
Virtu ITG Canada Corp | Canada | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory Capital | 16,911 | 12,944 |
Regulatory Capital Requirement | 197 | 196 |
Excess Regulatory Capital | 16,714 | 12,748 |
Virtu Financial Canada ULC | Canada | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory Capital | 200 | 2,486 |
Regulatory Capital Requirement | 197 | 196 |
Excess Regulatory Capital | 3 | 2,290 |
Virtu ITG Europe Limited (1) | ||
Public Utilities, General Disclosures [Line Items] | ||
Deposit funds for trade | 200 | 200 |
Virtu ITG Europe Limited (1) | Ireland | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory Capital | 78,066 | 57,459 |
Regulatory Capital Requirement | 32,636 | 32,106 |
Excess Regulatory Capital | 45,430 | 25,353 |
Virtu Financial Ireland Limited | Ireland | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory Capital | 109,229 | 94,528 |
Regulatory Capital Requirement | 58,083 | 41,038 |
Excess Regulatory Capital | 51,146 | 53,490 |
Virtu ITG UK Limited | United Kingdom | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory Capital | 1,057 | 1,290 |
Regulatory Capital Requirement | 846 | 910 |
Excess Regulatory Capital | 211 | 380 |
Virtu ITG Australia Limited | Asia Pacific | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory Capital | 30,717 | 30,606 |
Regulatory Capital Requirement | 8,776 | 12,729 |
Excess Regulatory Capital | 21,941 | 17,877 |
Virtu ITG Hong Kong Limited | ||
Public Utilities, General Disclosures [Line Items] | ||
Capital settlement | 30 | 30 |
Virtu ITG Hong Kong Limited | Asia Pacific | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory Capital | 2,902 | 4,290 |
Regulatory Capital Requirement | 513 | 625 |
Excess Regulatory Capital | 2,389 | 3,665 |
Virtu ITG Singapore Pte Limited | Asia Pacific | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory Capital | 845 | 796 |
Regulatory Capital Requirement | 74 | 76 |
Excess Regulatory Capital | $ 771 | $ 720 |
Geographic Information and Bu_3
Geographic Information and Business Segments - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues from External Customers [Line Items] | ||||
Total revenue | $ 544,344 | $ 656,112 | $ 2,105,881 | $ 2,562,635 |
United States | ||||
Revenues from External Customers [Line Items] | ||||
Total revenue | 433,013 | 484,594 | 1,678,650 | 2,045,330 |
Ireland | ||||
Revenues from External Customers [Line Items] | ||||
Total revenue | 55,137 | 61,320 | 242,614 | 233,783 |
Singapore | ||||
Revenues from External Customers [Line Items] | ||||
Total revenue | 30,696 | 26,630 | 102,965 | 140,492 |
Canada | ||||
Revenues from External Customers [Line Items] | ||||
Total revenue | 13,955 | 71,268 | 43,924 | 103,331 |
Australia | ||||
Revenues from External Customers [Line Items] | ||||
Total revenue | 9,982 | 10,107 | 31,868 | 32,186 |
United Kingdom | ||||
Revenues from External Customers [Line Items] | ||||
Total revenue | 0 | 964 | 1,745 | 3,944 |
Others | ||||
Revenues from External Customers [Line Items] | ||||
Total revenue | $ 1,561 | $ 1,229 | $ 4,115 | $ 3,569 |
Geographic Information and Bu_4
Geographic Information and Business Segments - Narrative (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of non-operating segments | 1 |
Geographic Information and Bu_5
Geographic Information and Business Segments - Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 544,344 | $ 656,112 | $ 2,105,881 | $ 2,562,635 |
Income (loss) before income taxes and noncontrolling interest | 145,099 | 252,515 | 769,887 | 1,123,272 |
Operating Segments | Market Making | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 409,290 | 474,598 | 1,635,555 | 2,064,300 |
Income (loss) before income taxes and noncontrolling interest | 135,875 | 161,732 | 713,723 | 1,010,871 |
Operating Segments | Execution Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 132,549 | 182,680 | 459,918 | 500,621 |
Income (loss) before income taxes and noncontrolling interest | 7,532 | 102,029 | 51,941 | 137,879 |
Segment Reconciling Items | Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 2,505 | (1,166) | 10,408 | (2,286) |
Income (loss) before income taxes and noncontrolling interest | $ 1,692 | $ (11,246) | $ 4,223 | $ (25,478) |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands, shares in Millions | Aug. 12, 2021USD ($)shares | Sep. 30, 2021USD ($)joint_venture | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2021USD ($)joint_venture | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) |
Related Party Transaction [Line Items] | ||||||||||
Due from related parties | $ 800 | $ 800 | $ 2,300 | |||||||
Value of shares repurchased | 139,377 | $ 101,419 | $ 79,418 | $ 2,418 | $ 360 | $ 9,801 | 337,500 | |||
Ordinal Holdings I, LP | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of shares repurchased (in shares) | shares | 1.5 | |||||||||
Value of shares repurchased | $ 39,200 | |||||||||
Microwave communication network JVs | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Payments to related party | $ 10,500 | 4,700 | $ 19,900 | $ 14,000 | ||||||
Number of microwave communication network JVs the Company makes payments to | joint_venture | 2 | 2 | ||||||||
Level 3 | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Payments for purchases | $ 500 | 400 | $ 1,200 | 1,200 | ||||||
CSA | Temasek Investment | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Related party costs | 13 | 200 | ||||||||
SBI | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Payments to related party | $ 2,900 | $ 4,100 | $ 9,100 | $ 13,800 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Nov. 03, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | May 04, 2021 |
Subsequent Event [Line Items] | |||||||||
Dividends declared (in dollars per share) | $ 0.24 | $ 0.24 | $ 0.24 | ||||||
Value of shares repurchased | $ 139,377 | $ 101,419 | $ 79,418 | $ 2,418 | $ 360 | $ 9,801 | $ 337,500 | ||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Increase in authorized repurchase amount | $ 750,000 | ||||||||
Share repurchase authorized amount | $ 1,220,000 | ||||||||
Class A common stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Share repurchase authorized amount | $ 470,000 | $ 470,000 | $ 300,000 | ||||||
Number of shares repurchased (in shares) | 132.5 | ||||||||
Class A common stock | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends declared (in dollars per share) | $ 0.24 | ||||||||
Number of shares repurchased (in shares) | 13.4 | ||||||||
Value of shares repurchased | $ 361,400 | ||||||||
Capital expenditures incurred but not yet paid | $ 858,600 |