Full text of HAYWOOD SECURITIES (USA) INC.'s X-17A-5 filed 2020-12-09 (period 2020-09-30). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ September 30, 2020 [Expressed in U.S. dollars] ## 1. NATURE OF OPERATIONS Haywood Securities (U.S.A.) Inc. [the "Company"] is <sup>a</sup> broker/dealer registered with the Securities and Exchange Commission ["SEC"] and is <sup>a</sup> member of the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation. The Company was incorporated under the laws of British Columbia, Canada on September 20, 1996. The Company is <sup>a</sup> wholly owned subsidiary of Haywood Securities Inc. ["HSI"J, <sup>a</sup> Canadian company regulated by the Investment Industry Regulatory Organization of Canada ["JIROC"]. The Company's primary source of revenue is commission income relating to securities trade execution for U.S. resident clients. For retail clients, the Company clears majority of its transactions through Hilltop Securities Inc. and self clears for retail clients where transactions cannot be processed through Hilltop Securities Inc. The Company self clears for all institutional business directly. ## 2. SIGNIFICANT ACCOUNTING POLICIES This financial statement has been prepare<sup>d</sup> in accordance with accounting principles generally accepted in the United States. The significant accounting policies are as follows: ### Revenue recognition Commission revenue consists of revenue generated through traditional commission-based brokerage services. Commission revenue is recognized on <sup>a</sup> trade-date basis as the performance obligation is satisfied when the underlying financial instrument or purchaser is identified, the price is agreed upon and risks and rewards of ownership of the securities have been transferred to/from the customer. Investment banking revenue consists of new issue and private <sup>p</sup>lacements revenue consisting of commissions earned on initial and secondary public offerings and private <sup>p</sup>lacements of securities. Revenue from commissions earned on initial and secondary public offerings and private <sup>p</sup>lacements of securities are recorded upon closing of the underlying transaction, which represents completion of the performance obligation as that is when the purchaser is identified, the price is agreed upon and risks and rewards of ownership of the securities have been transferred to/from the customer. Research fee income consists of fee income earned by the Company for services performed in connection with research activities for institu…Read the full text as markdown