13 unchanged sentences
In order to minimize the likelihood of unintended activities by our market making strategies, if our risk management system detects a trading strategy generating revenues outside of our preset limits, it will freeze, or “lockdown”, that strategy and alert risk management personnel and management.
+Added: Market risk was elevated during the period, largely as a result of the COVID-19 pandemic and the governmental and other responses thereto.
For working capital purposes, we invest in money market funds and maintain interest and non-interest bearing balances at banks and in our trading accounts with clearing brokers, which are classified as Cash and cash equivalents and Receivables from broker-dealers and clearing organizations, respectively, on the Consolidated Statements of Financial Condition.
19 unchanged sentences
In the normal course of business, we utilize derivative financial instruments in connection with our proprietary trading activities.
−Removed: We do not designate our derivative financial instruments as hedging instruments under ASC 815 Derivatives and Hedging, other than derivatives used to reduce the impact of fluctuations in foreign exchange rates on our net investment in certain non-U.S.
−Removed: operations as discussed in Note 12 “Derivative Instruments” of Item 8 “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K .
−Removed: Instead, we carry our derivative instruments at fair value with gains and losses included in trading income, net, in the accompanying Consolidated Statements of Comprehensive Income.
+Added: We carry our trading derivative instruments at fair value with gains and losses included in Trading income, net, in the accompanying Consolidated Statements of Comprehensive Income.
Fair value of derivatives that are freely tradable and listed on a national exchange is determined at their last sale price as of the last business day of the period.
Since gains and losses are included in earnings, we have elected not to separately disclose gains and losses on derivative instruments, but instead to disclose gains and losses within trading revenue for both derivative and non-derivative instruments.
+Added: We also use derivative instruments for risk management purposes, including cash flow hedges used to manage interest rate risk on long-term borrowings and net investment hedges used to manage foreign exchange risk.
+Added: We have entered into floating-to-fixed interest rate swap agreements in order to manage interest rate risk associated with our long-term debt obligations.
+Added: Additionally, we may seek to reduce the impact of fluctuations in foreign exchange rates on our net investment in certain non-U.S.
+Added: operations through the use of foreign currency forward contracts.
+Added: For interest rate swap agreements and foreign currency forward contracts designated as hedges, we assess our risk management objectives and strategy, including identification of the hedging instrument, the hedged item and the risk exposure and how effectiveness is to be assessed prospectively and retrospectively.
+Added: The effectiveness of the hedge is assessed based on the overall changes in the fair value of the interest rate swaps or forward contracts.
+Added: For instruments that meet the criteria to be considered hedging instruments under ASC 815, any gains or losses, to the extent effective, are included in Accumulated other comprehensive income on the Consolidated Statements of Financial Condition and Other comprehensive income on the Consolidated Statements of Comprehensive Income.
+Added: The ineffective portion, if any, is recorded in Other, net on the Consolidated Statements of Comprehensive Income.
Futures Contracts .
17 unchanged sentences
We estimate that a hypothetical 10% adverse change in the value of the U.S.
−Removed: dollar relative to our foreign denominated earnings would have resulted in decreases in revenues of $38.4 million and $23.4 million for the years ended December 31, 2019 and 2018 , respectively.
+Added: dollar relative to our foreign denominated earnings would have resulted in decreases in total revenues of $67.0 million and $38.4 million for the years ended December 31, 2020 and 2019, respectively.
Assets and liabilities of subsidiaries with non-U.S.
13 unchanged sentences
Futures contracts are executed on an exchange, and cash settlement is made on a daily basis for market movements, typically with a central clearing house as the counterparty.
−Removed: Accordingly, futures contracts
−Removed: generally do not have credit risk.
+Added: Accordingly, futures contracts generally do not have credit risk.
The credit risk for forward contracts, options, and swaps is limited to the unrealized market valuation gains recorded in the Consolidated Statements of Financial Condition.
1 unchanged sentence
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.