# WATERMARK SECURITIES, INC. X-17A-5/A (2025-04-01) — Broker-dealer annual report - Company: WATERMARK SECURITIES, INC. - Form: X-17A-5/A - Filed: 2025-04-01 - Period: 2023-12-31 - Accession: 0000876660-25-000003 - CIK: 876660 - File #: 8-43902 - Type: Broker-dealer - Material weakness: No - Auditor: BDO USA, P.C. - Auditor location: New York, NY - Contact: Michael Link - Phone: 212-451-1187 - Email: mlink@zweig-dimenna.com - Website: zweig-dimenna.com - Signed by: Michael Link (President) Original filing: https://www.sec.gov/Archives/edgar/data/876660/000087666025000003/x1223-sfcsec1.pdf --- {0}------------------------------------------------ # **Watermark Securities, Inc.** Report in Accordance with Rule 17a-5(e)(4) Year Ended December 31, 2023 {1}------------------------------------------------ ### Watermark Securities, Inc. ### Contents | Facing Page to Form X-17 A-5 | 2A | |---------------------------------|-----| | Affirmation of Officer | 2B | | Independent Accountant's Report | 3-4 | | Form SIPC-7 | 5-6 | {2}------------------------------------------------ PUBLIC **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12 # **ANNUAL REPORTS FORM X-17A-S PART Ill** | SEC FILE NUMBER | |-----------------| | 8-43902 | **FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934** FILING FOR THE PERIOD BEGINNING \_\_\_ 1\_/1\_/\_2\_3 \_\_\_ AND ENDING \_\_\_ 1\_2\_!\_3\_ 1!\_2\_3 \_\_ \_ MM/DD/VY MM/DD/VY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: \_\_\_ w\_a\_te\_r\_m\_a\_r\_k\_S\_e\_c\_u\_r\_it\_ie\_s\_,\_l\_n\_c\_. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ TYPE OF REGISTRANT (check all applicable boxes): IZl Broker-dealer □ Security-based swap dealer □ Major security-based swap participant □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: {Do not use a P.O. box no.) 900 Third Avenue (No. and Street) New York New York (City) (State) PERSON TO CONTACT WITH REGARD TO THIS FILING 10022 (Zip Code) Michael Link 212-451-1187 mlink@zweig-dimenna.com (Name) (Area Code -Telephone Number) (Email Address) **B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* BOO USA, P.C. (Name - if individual, state last, first, and middle name) 200 Park Avenue New York New York 10166 (Address) (City) (State) (Zip Code) 10/8/2003 243 **FOR OFFICIAL USE ONLY (PCAOB Reg;,u,uoa N,mbec,** ;f **applkable)** I \* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(ii), if applicable. **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.** {3}------------------------------------------------ #### **OATH OR AFFIRMATION** | I,
Michael Link | swear (or affirm) that, to the best of my knowledge and belief, the | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | financial report pertaining to the firm of | Watermark Securities Inc.
, as of | | 2~
December 31 | is true and correct. I further swear (or affirm) that neither the company nor any | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | -
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President | #### This filing\*\* contains (check all applicable **boxes):** - D (a) Statement offinanclal condition. - D (b) Notes to consolidated statement of financial condition. - D (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X). - D (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in lia billtles subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.lSa-l, as applfcable. - 0 (I) Computation of tangible net worth under 17 CFR 240.18a-2. - D 0) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of PAS Requirements under Exhibit A to§ 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.lSa-4, as applicable. - D (o) Reconcilfations, Including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-l, 17 CFR 240.lBa-1, or 17 CFR 240.lBa-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - D (p) Summary of financial data for subsidiaries not consolidated in the statement offlnancial condition. - I[) (q) Oath or affirmation In accordance with 17 CFR 240.17a-S, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. - □ (r) Compliance report In accordance with 17 CFR 240.17a-S or l7 CFR 240.lBa-7, as applicable. - D (s) Exemption report In accordance with 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - D (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.lSa-7, or 17 CFR 240.17a-12, as applicable. - D (v) Independent public accountant's report based on an examination of certain statements In the compllance report under 17 CFR 240.17a-S or 17 CFR 240.18a-7, as applicable. - D (w) Independent publls: accountant's report based on" review of the exemption report under 17 CFR 240.17a-S or 17 CfR 240.lBa-7, as applfcable. - D (JC) Supplemental reports on applying agreed-upon procedures, In accordance with 17 CFR 240.1Sc3·1e or 17 CFR 240.17a-12. as appllcable. - D (y) Report descrlbtna any material Inadequacies found to exist or found to have **existed** since the date of the previous audit, or **a** statement that no material Inadequacies exist, under 17 CFR 240.17a-12(k), - OD (z) Other: Aoopyot1111&1PC~R.tpat - uro ,~quest con/fdentlal tr6atmt:nt of certain portions of th/J fl/Ing, *sn* l7 CFR 240.17a-5(~)(3) or 17 CFR 240.l8o-7(d)(2), as appllcablt:. {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Fax: 212-697-1299 **www\_bdo\_com** **BDO** 200 Park Avenue New York, NY 10166 USA #### **Report of Independent Registered Public Accounting Firm** The Director Watermark Securities, Inc. New York, New York We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2023. Management of Watermark Securities, Inc. (Company) is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7. Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2023.Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purpose. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and the associated findings are as follows: - 1. We compared the listed assessment payments in Form SIPC-7 with respective cash disbursement records entries noting no differences. - 2. We compared the Total Revenue amounts reported on the Annual Audited Report Form X-17 A-5 Part Ill for the year ended December 31, 2023, with the Total Revenue amounts reported in Form SIPC-7 for the year ended December 31, 2023 noting no differences. - 3. We compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences. - 4. We recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments noting no differences. We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to, and did not, conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2023. Accordingly, we do BDO USA, P.C. , a Virginia professional corporation, is the U.S. member of BOO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. {5}------------------------------------------------ ![](_page_5_Picture_0.jpeg) not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the Company and SIPC and is not intended to be, and should not be, used by anyone other than these specified parties. ![](_page_5_Picture_4.jpeg) February 29, 2024 {6}------------------------------------------------ #### **GENERALASSESSMENTFORM** For the fiscal year ended 12/31/2023 | | Determination of "SIPC NET Operating Revenues" and General Assessment for:
MEMBER NAME | SEC No. | | |---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|---------------| | | WATERMARK SECURITIES INC | 8-43902 | | | | 1/1/2023
and ending
For the fiscal period beginning | 12/31/2023 | | | 1 | Total Revenue (FOCUS Report - Statement of Income (Loss)-
Code 4030) | | \$ 786,363.00 | | 2 | Additions: | | | | | a Total revenues from the securities business of subsidiaries (except foreign
subsidiaries) and predecessors not included above. | | | | | b Net loss from principal transactions in securities in trading accounts. | | | | | c Net loss from principal transactions in commodities in trading accounts. | | | | | d Interest and dividend expense deducted in determining item 1. | | | | | e Net loss from management of or participation in the underwriting or
distribution of securities. | | | | | f Expenses other than advertising, printing, registration fees and legal fees
deducted in determining net profit management of or participation in
underwriting or distribution of securities. | | | | | g Net loss from securities in investment accounts. | | | | | h Add lines 2a through 2g. This is your total additions. | | \$ 0.00 | | 3 | Add lines 1 and 2h | | \$ 786,363.00 | | 4 | Deductions: | | | | | a Revenues from the distribution of shares of a registered open end investment
company or unit investment trust, from the sale of variable annuities, from the
business of insurance, from investment advisory services rendered to
registered investment companies or insurance company separate accounts
and from transactions in security futures products. | \$19,862.00 | | | | b Revenues from commodity transactions. | | | | | c Commissions, floor brokerage and clearance paid to other SIPC members
in connection with securities transactions. | \$187,114.00 | | | | d Reimbursements for postage in connection with proxy solicitations. | | | | | e Net gain from securities in investment accounts. | | | | | f 100% commissions and markups earned from transactions in (I) certificates
of deposit and (ii) Treasury bills, bankers acceptances or commercial paper
that mature nine months or less from issuance date. | | | | | g Direct expenses of printing, advertising, and legal fees incurred in connection
with other revenue related to the securities business (revenue defined by
Section 16(9)(L) of the Act). | | | | | h Other revenue not related either directly or indirectly to the securities business.
Deductions in excess of \$100,000 require documentation | | | | 5 | a Total interest and dividend expense (FOCUS Report - Statement
of Income (Loss)- Code 4075 plus line 2d above) but
not in excess of total interest and dividend income | | | | | b 40% of margin interest earned on customers securities accounts
(40% of FOCUS Report- Statement of Income (Loss)-
Code 3960) | | | | | c Enter the greater of line Sa or Sb | \$ 0.00 | | | 6 | Add lines 4a through 4h and Sc. This is your total deductions. | | \$ 206,976.00 | {7}------------------------------------------------ | SIPC-7
37 REV 0722 | | SECURITIES INVESTOR PROTECTION CORPORATION | | SIPC-7
37 REV 0722 | |-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|-----------------------------------|-----------------------| | | | GENERAL ASSESSMENT FORM | | | | | For the fiscal year ended | 12/31/2023 | | | | 7 | Subtract line 6 from line 3. This is your SIPC Net Operating Revenues. | | | \$ 579,387.00 | | 8 | Multiply line 7 by .0015. This is your General Assessment. | | | \$ 869.00 | | 9 | Current overpayment/credit balance, if any | | | \$ 0.00 | | 10 | General assessment from last filed 2023 SIPC-6 or 6A | | \$ 503.00 | | | 11 | a Overpayment(s) applied on all 2023 SIPC-6 and 6A(s)
b Any other overpayments applied
c All payments applied for 2023 SIPC-6 and 6A(s)
d Add lines 11a through 11c | \$ 0.00
\$ 0.00
\$ 503.00 | \$ 503.00 | | | 12 | LESSER of line 10 or 11d. | | | \$ 503.00 | | | 13 a Amount from line 8
b Amount from line 9
c Amount from line 12
d Subtract lines 13b and 13c from 13a. This is your assessment balance due. | | \$ 869.00
\$ 0.00
\$ 503.00 | \$ 366.00 | | 14 | Interest (see instructions) for
O
days late at 20% per annum | | | \$ 0.00 | | 15 | Amount you owe SIPC. Add lines 13d and 14. | | | \$ 366.00 | | 16 | Overpayment/credit carried forward (if applicable) | | | \$ 0.00 | | SEC No.
8-43902 | Designated Examining Authority
DEA: FINRA
MEMBER NAME
WATERMARK SECURITIES INC
MAILING ADDRESS
900 THIRD AVE
31TH FLR
NEW YORK, NY 10022
UNITED STATES | FYE
2023 | Month
Dec | | Subsidiaries (S) and predecessors (P) included in the form (give name and SEC number) [Z] By checking this box, you certify that you have the authority of the SIPC member to sign this form; that all information in this form is true and complete; and that on behalf of the SIPC member, you are authorized , and do hereby consent, to the storage and handling by SIPC of the data in accordance with SI PC's Privacy Policy | WATERMARK SECURITIES INC | Michael Link | |--------------------------|-------------------------| | (Name of SIPC Member) | (Authorized Signatory) | | 1/18/2024 | mlink@zweig-dimenna.com | | (Date) | (e-mail address) | | | | Completion of the "Authorized Signatory" line will be deemed a signature. **This form and the assessment payment are due 60 days after the end of the fiscal year.** Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.