OPPENHEIMER HOLDINGS INCOPY
OPPENHEIMER HOLDINGS INC Fair Value Disclosure
Fair value measurements
Securities owned, securities sold but not yet purchased, investments, derivative contracts and certain loans are carried at fair value with changes in fair value recognized in earnings each period. Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. A description of the valuation techniques applied and inputs used in measuring the fair value of the Company’s financial instruments, as well as the general classification of such instruments pursuant to the valuation hierarchy, are as follows:
Securities
The Company determines the fair value of securities (both long and short) primarily based on pricing sources with reasonable levels of price transparency. Where unadjusted quoted prices for identical assets or liabilities are available in an active market, we classify the securities within Level 1 of the valuation hierarchy. Level 1 securities include U.S. Treasury securities, money market funds and corporate equities.
If quoted market prices are unavailable, fair values are generally determined using pricing models which incorporate market observable inputs, such as benchmark yields, recently executed transaction prices, issuer spreads, reported trades, bids, offers and other reference data. Examples of such instruments, which are typically classified within Level 2 of the valuation hierarchy, include U.S. Agency securities, sovereign obligations, corporate debt and other obligations, mortgage and other asset-backed securities, municipal obligations, money market funds and convertible bonds.
In limited situations where there is reduced activity or less observability around inputs to the valuation, we classify those securities in Level 3 of the valuation hierarchy. The Company has valued the ARS securities owned at the tender offer price and categorized them in Level 3 of the fair value hierarchy due to the illiquid nature of the securities and the period of time since the last tender offer. As of December 31, 2025 and December 31, 2024, the Company had $128,000 and $2.7 million respectively, of auction rate securities in Level 3 assets. Additionally, the Company has valued a convertible note using a discounted cash flow model and equity security warrants using a Black-Scholes option pricing model and categorized them in Level 3 of the fair value hierarchy due to the models' use of unobservable inputs. As of December 31, 2025, the Company had $2.1 million and $1.2 million of convertible notes and equity security warrants, respectively, in Level 3 assets. As of December 31, 2024, the Company had no convertible notes or equity security warrants classified in Level 3. Additionally, the Company classified a $17.0 million equity security associated with a consolidated private equity fund sponsored by the Company within Level 3 of the fair value hierarchy due to use of unobservable pricing inputs.
Derivative financial instruments
The Company classifies exchange-traded derivative financial instruments such as futures contracts in Level 1 of the valuation hierarchy. Some of our derivative positions, such as to-be-announced securities, are valued using models that use observable market parameters, and we classify them in Level 2 of the valuation hierarchy.
Loans
The fair value of loans is estimated using recently executed transactions and current price quotations, which are usually observable. When observable pricing information is not available, fair value is generally determined based on cash flow models using discounted cash flow models, competitor comparable data and other valuation metrics.
Other
The Company owns an equity method investment in a financial technologies firm. The Company elected the fair value option for this investment and it is included in other assets on the consolidated balance sheet. The Company determined the fair value of the investment based on an implied market-multiple approach and observable market data, including comparable company transactions. As of December 31, 2025 and December 31, 2024, the fair value of the investment was $6.3 million and $5.9 million, respectively, and was categorized in Level 2 of the fair value hierarchy.
Trade claims are categorized in Level 3 of the fair value hierarchy due to the illiquid nature of the claims and the period of time since the executed prices. As of December 31, 2025, the Company had no trade claims. As of December 31, 2024, Company had $2.7 million of trade claims in Level 3 assets.
Investments
Financial instruments measured at Net Asset Value ("NAV")
In its role as general partner in certain hedge funds and private equity funds, the Company, through its subsidiaries, holds direct investments in such funds. There are no readily available market quotations for these investments. The Company records these investments within other assets and uses the net asset value of the underlying fund as a basis for estimating the fair value of its investment unless another method provides a better indicator of fair value. Changes in the fair value of these investments are reflected within other income in the consolidated financial statements.
The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2025:
| (Expressed in thousands) | |||||||||||||||||||||||
| Fair Value | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | ||||||||||||||||||||
Private equity funds (2) | $ | 5,555 | $ | 741 | N/A | N/A | |||||||||||||||||
| $ | 5,555 | $ | 741 | ||||||||||||||||||||
(2) Private equity funds include portfolios focused on technology, infrastructure, real estate, natural resources and specific co- investment opportunities
The following table provides information about the Company's investments in Company-sponsored funds as of December 31, 2024:
| (Expressed in thousands) | |||||||||||||||||||||||
| Fair Value | Unfunded Commitments | Redemption Frequency | Redemption Notice Period | ||||||||||||||||||||
Hedge funds (1) | $ | 283 | $ | — | Quarterly - Annually | 30 - 120 days | |||||||||||||||||
Private equity funds (2) | 5,090 | 1,314 | N/A | N/A | |||||||||||||||||||
| $ | 5,373 | $ | 1,314 | ||||||||||||||||||||
(1) Hedge funds represent investments in credit driven strategies
(2) Private equity funds include portfolios focused on technology, infrastructure, real estate, natural resources and specific co- investment opportunities
Assets and Liabilities Measured at Fair Value
The Company's assets and liabilities, recorded at fair value on a recurring basis, as of December 31, 2025 and 2024, have been categorized based upon the above fair value hierarchy as follows:
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2025
| (Expressed in thousands) | |||||||||||||||||||||||
Fair Value Measurements as of December 31, 2025 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Deposits with clearing organizations | $ | 27,996 | $ | — | $ | — | $ | 27,996 | |||||||||||||||
| Securities owned: | |||||||||||||||||||||||
| U.S. Treasury securities | 1,151,564 | — | — | 1,151,564 | |||||||||||||||||||
| U.S. Agency securities | — | 5,925 | — | 5,925 | |||||||||||||||||||
| Sovereign obligations | — | 1,223 | — | 1,223 | |||||||||||||||||||
| Corporate debt and other obligations | — | 3,989 | 2,064 | 6,053 | |||||||||||||||||||
| Mortgage and other asset-backed securities | — | 2,109 | — | 2,109 | |||||||||||||||||||
| Municipal obligations | — | 28,926 | — | 28,926 | |||||||||||||||||||
| Convertible bonds | — | 20,500 | — | 20,500 | |||||||||||||||||||
| Corporate equities | 28,200 | — | 1,170 | 29,370 | |||||||||||||||||||
| Money markets | 5,000 | 4 | — | 5,004 | |||||||||||||||||||
| Auction rate securities | — | — | 128 | 128 | |||||||||||||||||||
| Securities owned, at fair value | 1,184,764 | 62,676 | 3,362 | 1,250,802 | |||||||||||||||||||
Investments (1) | 1,600 | 13,695 | 17,000 | 32,295 | |||||||||||||||||||
Loans (1) | — | 653 | — | 653 | |||||||||||||||||||
Derivative contracts: (2) | |||||||||||||||||||||||
| TBAs | — | 34 | — | 34 | |||||||||||||||||||
| — | 34 | — | 34 | ||||||||||||||||||||
| Total | $ | 1,214,360 | $ | 77,058 | $ | 20,362 | $ | 1,311,780 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Securities sold but not yet purchased: | |||||||||||||||||||||||
| U.S. Treasury securities | $ | 155,518 | $ | — | $ | — | $ | 155,518 | |||||||||||||||
| U.S. Agency securities | — | 1 | — | 1 | |||||||||||||||||||
| Sovereign obligations | — | 2,410 | — | 2,410 | |||||||||||||||||||
| Corporate debt and other obligations | — | 1,965 | — | 1,965 | |||||||||||||||||||
| Convertible bonds | — | 6,096 | — | 6,096 | |||||||||||||||||||
| Corporate equities | 9,722 | — | — | 9,722 | |||||||||||||||||||
| Securities sold but not yet purchased, at fair value | 165,240 | 10,472 | — | 175,712 | |||||||||||||||||||
Derivative contracts: (2) | |||||||||||||||||||||||
| Futures | 133 | — | — | 133 | |||||||||||||||||||
| TBAs | — | 27 | — | 27 | |||||||||||||||||||
| 133 | 27 | — | 160 | ||||||||||||||||||||
| Total | $ | 165,373 | $ | 10,499 | $ | — | $ | 175,872 | |||||||||||||||
(1) Included in other assets on the consolidated balance sheet
(2) Included in receivables / payables to brokers, dealers and clearing organizations
Assets and liabilities measured at fair value on a recurring basis as of December 31, 2024
| (Expressed in thousands) | |||||||||||||||||||||||
Fair Value Measurements as of December 31, 2024 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Deposits with clearing organizations | $ | 28,071 | $ | — | $ | — | $ | 28,071 | |||||||||||||||
| Securities owned: | |||||||||||||||||||||||
| U.S. Treasury securities | 995,420 | — | — | 995,420 | |||||||||||||||||||
| U.S. Agency securities | — | 3,691 | — | 3,691 | |||||||||||||||||||
| Corporate debt and other obligations | — | 9,423 | — | 9,423 | |||||||||||||||||||
| Mortgage and other asset-backed securities | — | 8,954 | — | 8,954 | |||||||||||||||||||
| Municipal obligations | — | 34,704 | — | 34,704 | |||||||||||||||||||
| Convertible bonds | — | 21,938 | — | 21,938 | |||||||||||||||||||
| Corporate equities | 23,873 | — | — | 23,873 | |||||||||||||||||||
| Money markets | 7,551 | — | — | 7,551 | |||||||||||||||||||
| Auction rate securities | — | — | 2,652 | 2,652 | |||||||||||||||||||
| Securities owned, at fair value | 1,026,844 | 78,710 | 2,652 | 1,108,206 | |||||||||||||||||||
Investments (1) | 978 | 17,005 | — | 17,983 | |||||||||||||||||||
Trade claims (1) | — | — | 2,684 | 2,684 | |||||||||||||||||||
Loans (1) | — | 432 | — | 432 | |||||||||||||||||||
| Total | $ | 1,055,893 | $ | 96,147 | $ | 5,336 | $ | 1,157,376 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Securities sold but not yet purchased: | |||||||||||||||||||||||
| U.S. Treasury securities | $ | 82,767 | $ | — | $ | — | $ | 82,767 | |||||||||||||||
| U.S. Agency securities | — | 4 | — | 4 | |||||||||||||||||||
| Corporate debt and other obligations | — | 11 | — | 11 | |||||||||||||||||||
| Convertible bonds | — | 4,998 | — | 4,998 | |||||||||||||||||||
| Corporate equities | 11,112 | — | — | 11,112 | |||||||||||||||||||
| Securities sold but not yet purchased, at fair value | 93,879 | 5,013 | — | 98,892 | |||||||||||||||||||
Derivative contracts: (2) | |||||||||||||||||||||||
| Futures | 1,071 | — | — | 1,071 | |||||||||||||||||||
| Derivative contracts, total | 1,071 | — | — | 1,071 | |||||||||||||||||||
| Total | $ | 94,950 | $ | 5,013 | $ | — | $ | 99,963 | |||||||||||||||
(1) Included in other assets on the consolidated balance sheet
(2) Included in receivables / payables to brokers, dealers and clearing organizations
The following tables present changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2025 and 2024:
| (Expressed in thousands) | |||||||||||||||||||||||||||||||||||
| Level 3 Assets and Liabilities | |||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Beginning Balance | Total Realized and Unrealized Gains (2) | Purchases and Issuances | Sales and Settlements | Transfers In / (Out) | Ending Balance | ||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Trade claims | $ | 2,684 | $ | 957 | $ | 534 | $ | (4,175) | $ | — | $ | — | |||||||||||||||||||||||
Auction rate securities (1) | 2,652 | 206 | — | (2,730) | — | 128 | |||||||||||||||||||||||||||||
Private equity securities (3) | — | — | 17,000 | — | — | 17,000 | |||||||||||||||||||||||||||||
| Corporate equities | — | — | 1,170 | — | — | 1,170 | |||||||||||||||||||||||||||||
| Corporate debt and other obligations | — | 234 | 1,830 | — | — | 2,064 | |||||||||||||||||||||||||||||
(1) Represents auction rate securities that failed in the auction rate market
(2) Included in principal transactions in the consolidated income statement
(3) Represents equity security associated with a consolidated private equity fund sponsored by the Company
| (Expressed in thousands) | |||||||||||||||||||||||||||||||||||
| Level 3 Assets and Liabilities | |||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Beginning Balance | Purchases and Issuances | Sales and Settlements | Transfers In / (Out) | Ending Balance | |||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Trade claims | $ | — | $ | — | $ | 1,427 | $ | — | $ | 1,257 | $ | 2,684 | |||||||||||||||||||||||
Auction rate securities (1) | 2,713 | 9 | — | (70) | — | 2,652 | |||||||||||||||||||||||||||||
(1) Represents auction rate securities that failed in the auction rate market
(2) Included in principal transactions in the consolidated income statement
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 consolidated balance sheets. The table below excludes non-financial assets and liabilities (e.g., furniture, equipment and leasehold improvements and accrued compensation).
The carrying value of financial instruments not measured at fair value categorized in the fair value hierarchy as Level 1 or Level 2 (e.g., cash and receivables from customers) approximates fair value because of the relatively short-term nature of the underlying assets.
Assets and liabilities not measured at fair value as of December 31, 2025
| (Expressed in thousands) | Fair Value Measurement: Assets | ||||||||||||||||||||||||||||
| Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| Cash and cash equivalents | $ | 38,405 | $ | 38,405 | $ | — | $ | — | $ | 38,405 | |||||||||||||||||||
| Deposits with clearing organizations | 79,611 | 79,611 | — | — | 79,611 | ||||||||||||||||||||||||
| Receivables from brokers, dealers and clearing organizations: | |||||||||||||||||||||||||||||
| Securities borrowed | 160,006 | — | 160,006 | — | 160,006 | ||||||||||||||||||||||||
| Receivables from brokers | 51,080 | — | 51,080 | — | 51,080 | ||||||||||||||||||||||||
| Securities failed to deliver | 2,583 | — | 2,583 | — | 2,583 | ||||||||||||||||||||||||
| Clearing organizations and other | 46,298 | — | 46,298 | — | 46,298 | ||||||||||||||||||||||||
| 259,967 | — | 259,967 | — | 259,967 | |||||||||||||||||||||||||
| Receivables from customers | 1,415,049 | — | 1,415,049 | — | 1,415,049 | ||||||||||||||||||||||||
| Notes receivable, net | 57,965 | — | 57,965 | — | 57,965 | ||||||||||||||||||||||||
| Company-owned life insurance | 109,094 | — | 109,094 | — | 109,094 | ||||||||||||||||||||||||
Investments (1) | 2,114 | — | 2,114 | — | 2,114 | ||||||||||||||||||||||||
(1) Included within other assets on the consolidated balance sheet
| (Expressed in thousands) | Fair Value Measurement: Liabilities | ||||||||||||||||||||||||||||
| Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| Drafts payable | $ | 18,347 | $ | 18,347 | $ | — | $ | — | $ | 18,347 | |||||||||||||||||||
| Bank call loans | 76,800 | — | 76,800 | — | 76,800 | ||||||||||||||||||||||||
| Payables to brokers, dealers and clearing organizations: | |||||||||||||||||||||||||||||
| Securities loaned | 370,331 | — | 370,331 | — | 370,331 | ||||||||||||||||||||||||
| Payables to brokers | 728 | — | 728 | — | 728 | ||||||||||||||||||||||||
| Securities failed to receive | 18,937 | — | 18,937 | — | 18,937 | ||||||||||||||||||||||||
| Clearing organizations and other | 7,841 | — | 7,841 | — | 7,841 | ||||||||||||||||||||||||
| 397,837 | — | 397,837 | — | 397,837 | |||||||||||||||||||||||||
| Payables to customers | 393,694 | — | 393,694 | — | 393,694 | ||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 997,192 | — | 997,192 | — | 997,192 | ||||||||||||||||||||||||
Assets and liabilities not measured at fair value as of December 31, 2024
| (Expressed in thousands) | Fair Value Measurement: Assets | ||||||||||||||||||||||||||||
| Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| Cash and cash equivalents | $ | 33,150 | $ | 33,150 | $ | — | $ | — | $ | 33,150 | |||||||||||||||||||
| Deposits with clearing organization | 70,838 | 70,838 | — | — | 70,838 | ||||||||||||||||||||||||
| Receivables from brokers, dealers and clearing organizations: | |||||||||||||||||||||||||||||
| Securities borrowed | 137,177 | — | 137,177 | — | 137,177 | ||||||||||||||||||||||||
| Receivables from brokers | 59,487 | — | 59,487 | — | 59,487 | ||||||||||||||||||||||||
| Securities failed to deliver | 8,459 | — | 8,459 | — | 8,459 | ||||||||||||||||||||||||
| Clearing organizations and other | 36,355 | — | 36,355 | — | 36,355 | ||||||||||||||||||||||||
| 241,478 | — | 241,478 | — | 241,478 | |||||||||||||||||||||||||
| Receivables from customers | 1,268,866 | — | 1,268,866 | — | 1,268,866 | ||||||||||||||||||||||||
| Notes receivable, net | 67,931 | — | 67,931 | — | 67,931 | ||||||||||||||||||||||||
| Company-owned life insurance | 98,828 | — | 98,828 | — | 98,828 | ||||||||||||||||||||||||
Investments (1) | 1,634 | — | 1,634 | — | 1,634 | ||||||||||||||||||||||||
(1) Included within other assets on the consolidated balance sheet
| (Expressed in thousands) | Fair Value Measurement: Liabilities | ||||||||||||||||||||||||||||
| Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
| Drafts payable | $ | 21,661 | $ | 21,661 | $ | — | $ | — | $ | 21,661 | |||||||||||||||||||
| Bank call loans | 252,100 | — | 252,100 | — | 252,100 | ||||||||||||||||||||||||
| Payables to brokers, dealers and clearing organizations: | |||||||||||||||||||||||||||||
| Securities loaned | 235,498 | — | 235,498 | — | 235,498 | ||||||||||||||||||||||||
| Payables to brokers | 607 | — | 607 | — | 607 | ||||||||||||||||||||||||
| Securities failed to receive | 14,757 | — | 14,757 | — | 14,757 | ||||||||||||||||||||||||
| Clearing organizations and other | 1,883 | — | 1,883 | — | 1,883 | ||||||||||||||||||||||||
| 252,745 | — | 252,745 | — | 252,745 | |||||||||||||||||||||||||
| Payables to customers | 357,835 | — | 357,835 | — | 357,835 | ||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 931,754 | — | 931,754 | — | 931,754 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities
The Company transacts, on a limited basis, in exchange traded and over-the-counter derivatives for both asset and liability management as well as for trading and investment purposes. Risks managed using derivative instruments include interest rate risk and, to a lesser extent, foreign exchange risk. All derivative instruments are measured at fair value and are recognized as either assets or liabilities on the consolidated balance sheet.
Foreign exchange hedges
From time to time, the Company also utilizes forward and options contracts to hedge the foreign currency risk associated with compensation obligations to Oppenheimer Israel (OPCO) Ltd. employees denominated in New Israeli Shekel ("NIS"). Such hedges have not been designated as accounting hedges. Any unrealized gains and losses on foreign exchange forward contracts are recorded in other assets or other liabilities on the consolidated balance sheet and other income in the consolidated income statement.
Derivatives used for trading and investment purposes
Futures contracts represent commitments to purchase or sell securities or other commodities at a future date and at a specified price. Market risk exists with respect to these instruments. Notional or contractual amounts are used to express the volume of these transactions and do not represent the amounts potentially subject to market risk. The Company uses futures contracts, including U.S. Treasury notes, Federal Funds, General Collateral futures and Eurodollar contracts primarily as an economic hedge of interest rate risk associated with government trading activities. Unrealized gains and losses on futures contracts are recorded on the consolidated balance sheet in receivables from / payables to brokers, dealers and clearing organizations and in the consolidated income statement as principal transactions revenue, net.
To-be-announced securities
The Company also transacts in pass-through mortgage-backed securities eligible to be sold in the TBA market as economic hedges against mortgage-backed securities that it owns or has sold but not yet purchased. TBAs provide for the forward or delayed delivery of the underlying instrument with settlement up to 180 days. The contractual or notional amounts related to these financial instruments reflect the volume of activity and do not reflect the amounts at risk. Net unrealized gains and losses on TBAs are recorded on the consolidated balance sheet in receivables from / payables to brokers, dealers and clearing organizations and in the consolidated income statement as principal transactions revenue, net.
The notional amounts and fair values of the Company's derivatives as of December 31, 2025 and 2024 by product were as follows:
| (Expressed in thousands) | |||||||||||||||||
Fair Value of Derivative Instruments as of December 31, 2025 | |||||||||||||||||
| Description | Notional | Fair Value | |||||||||||||||
| Assets: | |||||||||||||||||
Derivatives not designated as hedging instruments (1) | |||||||||||||||||
| Other contracts | TBAs | $ | 9,900 | $ | 34 | ||||||||||||
| $ | 9,900 | $ | 34 | ||||||||||||||
| Liabilities: | |||||||||||||||||
Derivatives not designated as hedging instruments (1) | |||||||||||||||||
Commodity contracts | Futures | $ | 13,960,000 | $ | 133 | ||||||||||||
| Other contracts | TBAs | 9,900 | 27 | ||||||||||||||
| $ | 13,969,900 | $ | 160 | ||||||||||||||
(1) See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset.
| (Expressed in thousands) | |||||||||||||||||
Fair Value of Derivative Instruments as of December 31, 2024 | |||||||||||||||||
| Description | Notional | Fair Value | |||||||||||||||
| Assets: | |||||||||||||||||
Derivatives not designated as hedging instruments (1) | |||||||||||||||||
| Other contracts | TBAs | $ | 360 | $ | — | ||||||||||||
| $ | 360 | $ | — | ||||||||||||||
| Liabilities: | |||||||||||||||||
Derivatives not designated as hedging instruments (1) | |||||||||||||||||
Commodity contracts | Futures | $ | 11,475,000 | $ | 1,071 | ||||||||||||
| Other contracts | TBAs | 360 | — | ||||||||||||||
| $ | 11,475,360 | $ | 1,071 | ||||||||||||||
(1) See "Derivative Instruments and Hedging Activities" above for a description of derivative financial instruments. Such derivative instruments are not subject to master netting agreements, thus the related amounts are not offset.
The following table presents the location and fair value amounts of the Company's derivative instruments and their effect in the consolidated income statements for the years ended December 31, 2025 and 2024:
| (Expressed in thousands) | |||||||||||||||||
| The Effect of Derivative Instruments in the Consolidated Income Statement | |||||||||||||||||
For the Year Ended December 31, 2025 | |||||||||||||||||
| Types | Description | Location | Net Gain (Loss) | ||||||||||||||
| Commodity contracts | Futures | Principal transactions revenue | $ | (189) | |||||||||||||
| Other contracts | TBAs | Principal transactions revenue | 17 | ||||||||||||||
| $ | (172) | ||||||||||||||||
| (Expressed in thousands) | |||||||||||||||||
| The Effect of Derivative Instruments in the Consolidated Income Statement | |||||||||||||||||
For the Year Ended December 31, 2024 | |||||||||||||||||
| Types | Description | Location | Net Gain (Loss) | ||||||||||||||
| Commodity contracts | Futures | Principal transactions revenue | $ | 3,083 | |||||||||||||
| Other contracts | Foreign exchange forward contracts | Other revenue | (10) | ||||||||||||||
| TBAs | Principal transactions revenue | 1 | |||||||||||||||
| $ | 3,074 | ||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 1, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 2, 2018 | |
| 2016 | Mar 3, 2017 | |
| 2015 | Mar 4, 2016 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.