Financial Assets and Financial Liabilities

12 Months Ended

Dec. 31, 2025

Financial Assets And Financial Liabilities [Abstract]

Financial Assets and Financial Liabilities

6. Financial Assets and Financial Liabilities

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The tables below present, by level within the fair value hierarchy (see Note 2), financial assets and liabilities, measured at fair value on a recurring basis for the periods indicated. As required by ASC Topic 820, financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the respective fair value measurement.


	Financial Assets at Fair Value as of December 31, 2025

	Level 1		Level 2		Level 3		Total

	(in millions)

Securities segregated for regulatory purposes
U.S. and foreign government securities	$	6,031	$	—	$	—	$	6,031
Municipal securities		—		66		—		66
Total securities segregated for regulatory purposes		6,031		66		—		6,097

Financial instruments owned, at fair value
Stocks		4,780		—		—		4,780
Options		23		49		—		72
U.S. and foreign government securities		63		—		—		63
Precious metals		—		50		—		50
Currency forward contracts		—		17		—		17
Total financial instruments owned, at fair value		4,866		116		—		4,982

Other assets
Customer-held fractional shares		428		—		—		428
Other investments in equity securities		88		—		—		88
Total other assets		516		—		—		516
Total financial assets at fair value	$	11,413	$	182	$	—	$	11,595


	Financial Liabilities at Fair Value as of December 31, 2025
	Level 1		Level 2		Level 3		Total

	(in millions)

Financial instruments sold, but not yet purchased, at fair value
Stocks	$	199	$	—	$	—	$	199
Options		15		483		—		498
Precious metals		—		42		—		42
Currency forward contracts		—		1		—		1
Total financial instruments sold, but not yet purchased, at fair value		214		526		—		740

Accounts payable, accrued expenses and other liabilities
Fractional shares repurchase obligation		428		—		—		428
Total accounts payable, accrued expenses and other liabilities		428		—		—		428
Total financial liabilities at fair value	$	642	$	526	$	—	$	1,168


	Financial Assets at Fair Value as of December 31, 2024
	Level 1		Level 2		Level 3		Total

	(in millions)

Securities segregated for regulatory purposes
U.S. and foreign government securities	$	6,460	$	—	$	—	$	6,460
Municipal securities		—		33		—		33
Total securities segregated for regulatory purposes		6,460		33		—		6,493

Financial instruments owned, at fair value
Stocks		1,763		—		—		1,763
Options		84		—		—		84
U.S. and foreign government securities		54		—		—		54
Mutual funds		2		—		—		2
Precious metals		—		21		—		21
Currency forward contracts		—		—		—		—
Total financial instruments owned, at fair value		1,903		21		—		1,924

Other assets
Customer-held fractional shares		260		—		—		260
Other investments in equity securities		32		—		—		32
Total other assets		292		—		—		292
Total financial assets at fair value	$	8,655	$	54	$	—	$	8,709


	Financial Liabilities at Fair Value as of December 31, 2024
	Level 1		Level 2		Level 3		Total

	(in millions)

Financial instruments sold, but not yet purchased, at fair value
Stocks	$	116	$	—	$	—	$	116
Options		96		—		—		96
Precious metals		—		18		—		18
Currency forward contracts		—		63		—		63
Total financial instruments sold, but not yet purchased, at fair value		212		81		—		293

Accounts payable, accrued expenses and other liabilities
Fractional shares repurchase obligation		260		—		—		260
Total accounts payable, accrued expenses and other liabilities		260		—		—		260
Total financial liabilities at fair value	$	472	$	81	$	—	$	553

Level 3 Financial Assets and Financial Liabilities

There were no transfers in or out of level 3 for the year ended December 31, 2025.

Financial Assets and Liabilities Not Measured at Fair Value

Financial assets and liabilities not measured at fair value are recorded at carrying value, which approximates fair value due to their short-term nature. The tables below represent the carrying value, fair value and fair value hierarchy category of certain financial assets and liabilities that are not recorded at fair value in the consolidated statements of financial condition for the periods indicated. The tables below exclude certain financial instruments such as equity method investments and all non-financial assets and liabilities.


	December 31, 2025
	Carrying Value		Fair Value		Level 1		Level 2		Level 3

	(in millions)

Financial assets, not measured at fair value
Cash and cash equivalents	$	4,963	$	4,963	$	4,963	$	—	$	—
Cash - segregated for regulatory purposes		50,332		50,332		50,332		—		—
Securities - segregated for regulatory purposes		20,424		20,424		—		20,424		—
Securities borrowed		11,589		11,589		—		11,589		—
Securities purchased under agreements to resell		7,117		7,117		—		7,117		—
Receivables from customers		90,475		90,475		—		90,475		—
Receivables from brokers, dealers and clearing organizations		5,161		5,161		—		5,161		—
Interest receivable		530		530		—		530		—
Other assets		70		71		—		32		39
Total financial assets, not measured at fair value	$	190,661	$	190,662	$	55,295	$	135,328	$	39


Financial liabilities, not measured at fair value
Short-term borrowings	$	19	$	19	$	—	$	19	$	—
Securities loaned		24,751		24,751		—		24,751		—
Payables to customers		154,336		154,336		—		154,336		—
Payables to brokers, dealers and clearing organizations		1,566		1,566		—		1,566		—
Interest payable		321		321		—		321		—
Total financial liabilities, not measured at fair value	$	180,993	$	180,993	$	—	$	180,993	$	—


	December 31, 2024
	Carrying Value		Fair Value		Level 1		Level 2		Level 3

	(in millions)

Financial assets, not measured at fair value
Cash and cash equivalents	$	3,633	$	3,633	$	3,633	$	—	$	—
Cash - segregated for regulatory purposes		36,600		36,600		36,600		—		—
Securities - segregated for regulatory purposes		21,353		21,353		—		21,353		—
Securities borrowed		5,369		5,369		—		5,369		—
Securities purchased under agreements to resell		6,575		6,575		—		6,575		—
Receivables from customers		64,432		64,432		—		64,432		—
Receivables from brokers, dealers and clearing organizations		2,196		2,196		—		2,196		—
Interest receivable		446		446		—		446		—
Other assets		30		32		—		3		29
Total financial assets, not measured at fair value	$	140,634	$	140,636	$	40,233	$	100,374	$	29


Financial liabilities, not measured at fair value
Short-term borrowings	$	14	$	14	$	—	$	14	$	—
Securities loaned		16,248		16,248		—		16,248		—
Payables to customers		115,343		115,343		—		115,343		—
Payables to brokers, dealers and clearing organizations		476		476		—		476		—
Interest payable		311		311		—		311		—
Total financial liabilities, not measured at fair value	$	132,392	$	132,392	$	—	$	132,392	$	—

Netting of Financial Assets and Financial Liabilities

The Company’s policy is to net securities borrowed and securities loaned, and securities purchased under agreements to resell and securities sold under agreements to repurchase that meet the offsetting requirements prescribed in ASC Topic 210-20. In the tables below, the amounts of financial instruments that are not offset in the consolidated statements of financial condition, but could be netted against cash or financial instruments with specific counterparties under master netting agreements, according to the terms of the agreements, including clearing houses (exchange-traded options, warrants and discount certificates) or over the counter currency forward contract counterparties, are presented to provide financial statement readers with the Company’s net payable or receivable with counterparties for these financial instruments.

The tables below present the netting of financial assets and financial liabilities for the periods indicated.


	December 31, 2025
	Gross			Amounts			Net Amounts		Amounts Not Offset
	Amounts			Offset in the			Presented in		Consolidated
	of Financial			Consolidated			Consolidated		Statements of
	Assets and			Statements of			Statements of		Financial Condition
	Liabilities			Financial			Financial		Cash or Financial			Net
	Recognized			Condition		2	Condition		Instruments			Amount

	(in millions)

Offsetting of financial assets
Securities segregated for regulatory purposes:
Segregated securities purchased under agreements to resell	$	17,981	1	$	—		$	17,981	$	(17,981	)	$	—
Segregated securities borrowed		2,443	1		—			2,443		(2,367	)		76

Securities borrowed		11,589			—			11,589		(11,241	)		348
Securities purchased under agreements to resell		7,117			—			7,117		(7,117	)		—
Financial instruments owned, at fair value
Options		72			—			72		(64	)		8
Currency forward contracts		17			—			17		—			17
Total	$	39,219		$	—		$	39,219	$	(38,770	)	$	449

Offsetting of financial liabilities
Securities loaned	$	24,751		$	—		$	24,751	$	(23,261	)	$	1,490
Financial instruments sold, but not yet purchased, at fair value
Options		498			—			498		(64	)		434
Currency forward contracts		1			—			1		—			1
Total	$	25,250		$	—		$	25,250	$	(23,325	)	$	1,925


	December 31, 2024
		Gross			Amounts			Net Amounts		Amounts Not Offset
		Amounts			Offset in the			Presented in		Consolidated
		of Financial			Consolidated			Consolidated		Statements of
		Assets and			Statements of			Statements of		Financial Condition
		Liabilities			Financial			Financial		Cash or Financial			Net
		Recognized			Condition		2	Condition		Instruments			Amount

	(in millions)

Offsetting of financial assets
Securities segregated for regulatory purposes:
Segregated securities purchased under agreements to resell	$		21,353	1	$	—		$	21,353	$	(21,353	)	$	—

Securities borrowed			5,369			—			5,369		(5,159	)		210
Securities purchased under agreements to resell			6,575			—			6,575		(6,575	)		—
Financial instruments owned, at fair value
Options			84			—			84		(69	)		15
Currency forward contracts			—			—			—		—			—
Total	$		33,381		$	—		$	33,381	$	(33,156	)	$	225

Offsetting of financial liabilities
Securities loaned	$		16,248		$	—		$	16,248	$	(15,105	)	$	1,143
Financial instruments sold, but not yet purchased, at fair value
Options			96			—			96		(69	)		27
Currency forward contracts			63			—			63		—			63
Total	$		16,407		$	—		$	16,407	$	(15,174	)	$	1,233

(1)

As of December 31, 2025 and 2024, the Company had $18.0 billion and $21.4 billion, respectively, of securities purchased under agreements to resell, and $2.4 billion and $0 billion, respectively, of securities borrowed that were segregated to satisfy regulatory requirements. These securities are reported in “Securities - segregated for regulatory purposes” in the consolidated statements of financial condition.

(2)

As of December 31, 2025 and 2024, the Company did not have any balances eligible for netting in accordance with ASC Topic 210-20.

Secured Financing Transactions – Maturities and Collateral Pledged

The tables below present gross obligations for securities loaned transactions by remaining contractual maturity and class of collateral pledged for the periods indicated.


	December 31, 2025
	Remaining Contractual Maturity
	Overnight		Less than		30 – 90		Over 90
	and Open		30 days		days		days		Total

	(in millions)

Securities loaned
Stocks	$	24,596	$	—	$	—	$	—	$	24,596
Corporate bonds		145		—		—		—		145
Foreign government securities		10		—		—		—		10
Total securities loaned	$	24,751	$	—	$	—	$	—	$	24,751


	December 31, 2024
	Remaining Contractual Maturity
	Overnight		Less than		30 – 90		Over 90
	and Open		30 days		days		days		Total

	(in millions)

Securities loaned
Stocks	$	16,215	$	—	$	—	$	—	$	16,215
Corporate bonds		33		—		—		—		33
Total securities loaned	$	16,248	$	—	$	—	$	—	$	16,248

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details