Jefferies Financial Group
24 named things its latest annual report says its results depend on, each in the company's own words. 16 of them are also named by other companies we've read.
Customers
U.S. Government-Sponsored Enterprises
earns fromnamed as a riskMany factors, many of which are outside of our control, can affect Berkadia's business, including losses on loan originations in excess of reserves; a change in the relationships with U.S. Government-Sponsored Enterprises or federal agencies; a significant loss of customers; and other factors that directly and indirectly affect the results of operations, including the sales and profitability of Berkadia, and consequently may adversely affect our results of operations or financial condition.Risk factors (Item 1A)
Partners and platforms
Berkshire Hathaway
$1.5 billion surety policynamed as a riskIf Berkadia suffers significant losses and is unable to repay its commercial paper borrowings, we would suffer losses to the extent of our reimbursement obligation to Berkshire Hathaway.Risk factors (Item 1A)
Massachusetts Mutual Life Insurance Company
50/50 joint ventureJefferies Finance, our 50/50 joint venture with Massachusetts Mutual Life Insurance Company, structures, underwrites and syndicates primarily senior secured loans to corporate borrowers; and manages proprietary and third-party investments composed of both broadly syndicated and direct lending loans.Business (Item 1)
Berkadia Commercial Mortgage Holding LLC
named as a riskOur investment in Berkadia may not prove to be successful and may adversely affect our results of operations or financial condition.Risk factors (Item 1A)
Jefferies Finance (JFIN Parent LLC)
named as a riskOur investment in Jefferies Finance may not prove to be successful and may adversely affect our results of operations or financial condition.Risk factors (Item 1A)
Other companies
Tessellis S.p.A.
Our legacy merchant banking portfolio includes Stratos Group International, LLC (“Stratos”), provider of online foreign exchange trading services; Tessellis S.p.A. (“Tessellis”), a telecommunications company publicly listed on the Italian stock exchange; HomeFed LLC (“HomeFed”), (real estate); investments in certain public equity securities; and other investments in private and public companies and asset management funds.Business (Item 1)
Places
Israel
operates innamed as a riskLikewise, our investments and assets in our growing Israeli business could be negatively affected by consequences from the geopolitical and military conflict in the region.Risk factors (Item 1A)
Also named by AIOT, AKAM, AMAT, AMGN, APP, ASTS, AVY, BSX and 31 more
Italy
operates innamed as a riskIn addition, other factors, most of which are outside of our control, can affect our businesses, including the state of the real estate market, the state of the Italian telecommunications market, and the state of international market and economic conditions which impact trading volume and currency volatility, and changes in regulatory requirements.Risk factors (Item 1A)
Japan
operates inIn September 2025, we announced that we have entered into a Memorandum of Understanding with SMBC Group to establish a joint venture in Japan to conduct together the principal aspects of our wholesale Japanese equity research, sales and trading and equity capital markets business, which we anticipate will begin in January 2027.Business (Item 1)
Also named by A, AAPL, AFL, AMKR, ANET, BMY, BSX, CAT and 25 more
Commodities and inputs
Oil
exposed to its pricenamed as a riskIn any period, we may experience losses on our inventory positions as a result of the level and volatility of equity, fixed income and commodity prices (including oil prices), lack of trading volume and illiquidity.Risk factors (Item 1A)
Also named by AYI, BAX, BSM, GM, GRC, J, JBL, MHK and 6 more
Regulators
Commodity Futures Trading Commission (CFTC)
subject to · $1.0 millionAs a non-clearing FCM, Jefferies LLC is also required to maintain minimum adjusted net capital of $1.0 million under CFTC rules.Business (Item 1)
Also named by AB, ADM, AGNC, AMG, BAC, BGC, BMNR, C and 35 more
U.S. Securities and Exchange Commission (SEC)
subject toAs a publicly traded company and through our investment bank, investment management and derivative businesses in the U.S., we are subject to the jurisdiction of the Securities and Exchange Commission (“SEC”).Business (Item 1)
Also named by AB, ADSK, AMG, AMP, ARCC, ARES, BAM, BCSF and 44 more
Financial Industry Regulatory Authority (FINRA)
subject toThe designated examining authority for Jefferies LLC’s activities as a broker-dealer is FINRA, and the designated self-regulatory organization (“DSRO”) for Jefferies LLC’s non-clearing FCM activities is the NFA.Business (Item 1)
Also named by AB, ADP, AGNC, AMG, AMP, BAM, BEN, BR and 23 more
U.K. Financial Conduct Authority (FCA)
subject toPillar 1 is its own funds requirement which represents the highest of the permanent minimum capital requirement, fixed overheads requirement and k-factor requirements set out in the Investment Firms Prudential Regime under the Financial Conduct Authority’s (“FCA”) MIFIDPRU sourcebook, while Pillar 2 pertains to the International Capital Adequacy and Risk Assessment process whereby Jefferies International Limited ensures that it maintains capital in excess of minimum regulatory capital requirements under both normal and stressed conditions.Business (Item 1)
Securities Investor Protection Corporation (SIPC)
subject toJefferies LLC is also subject to the Securities Investor Protection Act and is required by federal law to be a member of the Securities Investors Protection Corporation (“SIPC”).Business (Item 1)
Also named by SF
Laws and programs
EU General Data Protection Regulation (GDPR)
subject to · up to the higher of 4% of an organization’s annual worldwide turnover or €20 millionnamed as a riskIn Europe and the UK alone, the GDPR imposes significant fines for serious non-compliance of up to the higher of 4% of an organization’s annual worldwide turnover or €20 million (or £17.5 million under the UK GDPR).Risk factors (Item 1A)
Also named by ACN, ADSK, AIG, ALK, AMG, ANET, APG, AXON and 61 more
SEC Net Capital Rule 15c3-1
subject to · $1.5 million for prime brokersnamed as a riskCompliance with the Net Capital Rule could limit Jefferies LLC’s operations, such as underwriting and trading activities and financing customers’ prime brokerage or other margin activities that could require the use of significant amounts of capital or limit its ability to engage in certain financing transaction.Business (Item 1)
EU AI Act
subject tonamed as a riskIf we were classified to be such a provider or deployer of AI Systems and deemed non-compliant, we could potentially face significant fines.Risk factors (Item 1A)
Also named by ACN, ADBE, AMD, AXON, CGNX, CRM, CRWD, CTSH and 36 more
Dodd-Frank Act
subject tonamed as a riskWe have incurred significant compliance and operational costs as a result of the swaps and SBS rules adopted by the CFTC and SEC pursuant to the Dodd-Frank Act, and we expect that the complex regulatory framework will continue to require significant monitoring and compliance expenditures.Risk factors (Item 1A)
Also named by AFL, AN, BGC, CNX, CPAY, EPD, EQT, FITB and 14 more
MiFID II
subject tonamed as a riskThe European regulators continue to refine aspects of MiFID with these changes now being rolled out separately in both the UK and Europe.Risk factors (Item 1A)
European Market Infrastructure Regulation (EMIR)
subject tonamed as a riskFurther enhancements (driven by regulation) have been required in 2024 with respect to EMIR OTC derivative transaction reporting, and affect our European entities.Risk factors (Item 1A)
EU T+1 settlement cycle
subject tonamed as a riskFor example, a legislative proposal was approved, to go live in 2027, to shorten the settlement cycle in the EU, UK, and Switzerland from two days to one (“T+1”) for transactions in transferable securities executed on trading venues.Risk factors (Item 1A)
Investment Firms Regulation and MIFIDPRU
subject toConsequently, we have adapted our remuneration structures for those employees identified as material risk takers.Risk factors (Item 1A)
U.S. Primary Dealer designation
Jefferies is designated as a Primary Dealer for U.S. government securities and is designated in similar capacities for several European countries.Business (Item 1)