2 unchanged sentences
Interest Rate Risk
−Removed: Debt outstanding at December 31, 2023 consisted of fixed-rate borrowings of $3.4 billion (in U.S.
−Removed: dollar equivalent).
+Added: Debt outstanding at December 31, 2024 consisted of fixed-rate borrowings of $3.4 billion.
Changes in interest rates impact the fair values of fixed-rate debt, but do not impact earnings or cash flows.
31 unchanged sentences
In addition to the 364-day multi-currency line of credit, we also have the option to use our $2.3 billion multi-currency revolving senior credit facility to provide liquidity for our clearing house in the unlikely event of default.
+Added: We maintain committed repurchase facility agreements amounting to a total of $1.0 billion.
+Added: The committed repurchase facilities provide access to cash, secured by non-cash collateral, in the event that one or more of our clearing firms fails to promptly discharge an obligation to the clearing house.
+Added: The facilities are subject to annual renewal.
+Added: We currently do not have any borrowings outstanding under these facilities.
+Added: We also maintain a committed facility of up to $750.0 million for foreign currency conversions.
+Added: The committed foreign currency facility allows the clearing house to convert cash to another currency within generally accepted local market timeframes in the event that one or more of our clearing firms fails to promptly discharge an obligation to the clearing house.
+Added: The facility is subject to annual renewal.
+Added: We currently do not have any foreign currency trades outstanding under this facility.
At December 31, 2024, aggregate performance bond deposits for clearing firms for both financial safeguard packages was $291.5 billion, including cash performance bond deposits, non-cash deposits, Interest Earnings Facility funds and letters of credit.
9 unchanged sentences
(2) Guaranty fund contributions of clearing firms include guaranty fund contributions required of clearing firms, but do not include any excess deposits held by us at the direction of clearing firms.
−Removed: (3) In the event of a clearing firm default, if a loss continues to exist after the utilization of the assets of the defaulted firm, our corporate contribution and the non-defaulting clearing firms' guaranty fund contributions, we would assess all non-defaulting clearing members as provided in the rules governing the guaranty fund.
−Removed: We could assess non-defaulting clearing members 275% of their existing guaranty fund requirements up to a maximum of 550% of their existing guaranty fund requirements as provided in the rules.
+Added: (3) In the event of a clearing firm default, if a loss continues to exist after the utilization of the assets of the defaulted firm, our corporate contribution and the non-defaulting clearing firms' guaranty fund contributions, we would assess all non-defaulting clearing firm as provided in the rules governing the guaranty fund.
+Added: We could assess non-defaulting clearing firms 275% of their existing guaranty fund requirements in the event of a single default, and up to a maximum of 550% of their existing guaranty fund requirements in the event of a default by multiple clearing firms, as provided in the rules.
Assessment powers are calculated to reflect the potential obligation that each clearing member could be called for in the event clearing member defaults exhaust the guaranty fund;
−Removed: however, the total amount available would be reduced by the defaulted clearing members' assessment obligations since they would no longer be able to satisfy their obligations.
+Added: however, the total amount available would be reduced by the defaulted clearing firms' assessment obligations since they would no longer be able to satisfy their obligations.
The following shows the available assets for the interest rate swap financial safeguard package at December 31, 2024 in the event of a payment default by a clearing firm that clears interest rate swap contracts, after first utilizing the defaulting firm's available assets:
7 unchanged sentences
(2) Guaranty fund contributions of clearing firms include guaranty fund contributions required of clearing firms, but do not include any excess deposits held by us at the direction of clearing firms.
−Removed: (3) In the event of a clearing firm default, if a loss continues to exist after the utilization of the assets of the defaulted firm, our corporate contribution and the non-defaulting firms' guaranty fund contributions, we would assess non-defaulting clearing members as provided in the rules governing the interest rate swap guaranty fund.
+Added: (3) In the event of a clearing firm default, if a loss continues to exist after the utilization of the assets of the defaulted firm, our corporate contribution and the non-defaulting firms' guaranty fund contributions, we would assess non-defaulting clearing firms as provided in the rules governing the interest rate swap guaranty fund.
Assessment powers are calculated to reflect the potential obligation that each clearing member could be called for based on potential failure of the third and fourth largest clearing member;
−Removed: however, the total amount available would be reduced by the defaulted clearing members' assessment obligations since they would no longer be able to satisfy their obligations.
+Added: however, the total amount available would be reduced by the defaulted clearing firms' assessment obligations since they would no longer be able to satisfy their obligations.
BrokerTec Americas Matched Principal Business
1 unchanged sentence
BrokerTec Americas uses Fixed Income Clearing Corporation (FICC), a third-party central clearing house as well as a third-party clearing bank for the settlement of transactions and is required to post short-term margin requirements twice a day that can vary based on the size of unsettled transactions and any adverse market changes.
−Removed: At December 31, 2023, the balance of the collateral at FICC was $175.0 million , which was included in other current assets on the consolidated balance sheet.
+Added: At December 31, 2024, the balance of the collateral at FICC was $230.0 million, wh ich was included in other current assets on the consolidated balance sheet.
Without sufficient funds to meet its obligations, BrokerTec Americas could be exposed to risk of breach of contract with the counterparties and the inability to continue as a member of the third-party central clearing house.
Transactions with clearing house members are typically confirmed and novated shortly after execution, at which point the clearing house assumes the risk of settlement.
−Removed: For transactions with counterparties that are not members of the third-party clearing house, settlement typically occurs on the day following execution and, prior to settlement, BrokerTec Americas is exposed to the risk of loss in the event a
−Removed: counterparty fails to meet its obligations.
+Added: For transactions with counterparties that are not members of the third-party clearing house, settlement typically occurs on the day following execution and, prior to settlement, BrokerTec Americas is exposed to the risk of loss in the event a counterparty fails to meet its obligations.
If that were to occur, BrokerTec Americas would have the right to cover or liquidate the open position but could incur a loss as a result of market movements.
−Removed: At December 31, 2023, we had a receivable from counterparties and payable to counterparties of $714.9 million and $708.9 million, respectively.
−Removed: These receivables and payables were settled within two business days following December 31, 2023.
−Removed: The counterparty receivables and payables are recognized within other current assets and other current liabilities, respectively.
Foreign Currency Exchange Rate Risk
13 unchanged sentences
Gains and losses resulting from this translation are recognized as a foreign currency translation adjustment within accumulated other comprehensive income, which is a component of shareholders' equity and comprehensive income.
−Removed: Aggregate translation gains (losses), net of tax, for 2023, 2022 and 2021 were $70.8 million , $(195.4) million and $(62.0) million, respectively.
+Added: Aggregate translation gains (losses) for 2024, 2023 and 2022 were $(61.0) million, $70.8 million and $(195.4) million, respectively.
Foreign Currency Exchange Risk Related to Customer Collateral
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.