Quantitative and Qualitative Disclosures About Market Risk
−Removed: We maintain trading securities owned and securities sold, but not yet purchased in order to facilitate client transactions, to meet a portion of our clearing deposit requirements at various clearing organizations, to track the performance of our research models and in connection with our dividend reinvestment program.
+Added: We maintain trading securities and securities sold, but not yet purchased in order to facilitate client transactions, to meet a portion of our clearing deposit requirements at various clearing organizations, to track the performance of our research models and in connection with our dividend reinvestment program.
Trading securities are included in investment securities while securities sold, but not yet purchased are included in other liabilities on the consolidated statements of financial condition and can include mutual funds, money market funds, debt securities and equity securities.
−Removed: We enter into market risk sensitive instruments for purposes other than trading, which are included in other assets on the consolidated statements of financial condition and can include deferred compensation plan assets invested in life insurance, money market and other mutual funds, investments in fractional shares held by customers, and other non-traded real estate investment trusts and auction rate notes.
+Added: We enter into market risk sensitive instruments for purposes other than trading, which are included in other assets on the consolidated statements of financial condition and can include deferred compensation plan assets invested in life insurance, money market and other mutual funds, investments in fractional shares held by customers, and other non-traded real estate investment trusts.
Changes in the value of our market risk sensitive instruments may result from fluctuations in interest rates, credit ratings of the issuer, equity prices or a combination of these factors.
−Removed: In facilitating client transactions, our securities owned and securities sold, but not yet purchased generally involve mutual funds, including dividend reinvestments.
+Added: In facilitating client transactions, our trading securities and securities sold, but not yet purchased generally involve mutual funds, including dividend reinvestments.
Our positions held are based upon the settlement of client transactions, which are monitored by our Trading and Operations department.
22 unchanged sentences
Term Loan B $ 1,027,200 $ 1,023 $ 2,558 $ 5,116 $ 10,232
+Added: Revolving Credit Facility
280,000 280 700 1,400 2,800
+Added: Variable-Rate Debt Outstanding
+Added: $ 1,307,200 $ 1,303 $ 3,258 $ 6,516 $ 13,032
+Added: ____________________
(†) Our interest rate for our Term Loan B is locked in for one, two, three, six or twelve months as allowed under the Credit Agreement.
1 unchanged sentence
The effect of these interest rate locks are not included in the table above.
−Removed: Table of Content s
See Note 11 - Corporate Debt and Other Borrowings, Net, within the notes to the consolidated financial statements for additional information.
2 unchanged sentences
Clients earn interest on deposits in the ICA and the DCA while we earn a fee.
−Removed: The fees we earn from cash held in the ICA are based primarily on prevailing interest rates in the current interest rate environment.
+Added: The fees we earn from cash held in the ICA are based primarily on prevailing interest rates in the current interest rate environment, and are therefore subject to interest rate risk.
The fees we earn from the DCA are calculated as a per account fee, and such fees increase as the federal funds target rate increases, subject to a cap.
14 unchanged sentences
As our advisors execute margin transactions on behalf of their clients, we may incur losses if clients do not fulfill their obligations, the collateral in the clients’ accounts is insufficient to fully cover losses from such investments and our advisors fail to reimburse us for such losses.
−Removed: Our losses on margin accounts were immaterial during the years ended December 31, 2022 and 2021.
+Added: Our losses on margin accounts were not material during the years ended December 31, 2023 and 2022.
We monitor exposure to industry sectors and individual securities and perform analyses on a regular basis in connection with our margin lending activities.
3 unchanged sentences
We seek to limit this risk through review of the underlying business and the use of limits established by senior management taking into consideration factors including current market conditions, the financial strength of the counterparty, the size of the position or commitment, the expected duration of the position or commitment and other positions or commitments outstanding.
−Removed: Table of Content s
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.