# SIG BROKERAGE, LP X-17A-5 (2020-02-20) — Broker-dealer annual report - Company: SIG BROKERAGE, LP - Form: X-17A-5 - Filed: 2020-02-20 - Period: 2019-12-31 - Accession: 0001094429-20-000001 - CIK: 1094429 - File #: 8-52028 - Material weakness: No - Auditor: EisnerAmper - Auditor location: New York, PA - Contact: Robert C Sack - Phone: 6106172812 - Signed by: Robert C Sack (Treasurer) Original filing: https://www.sec.gov/Archives/edgar/data/1094429/000109442920000001/2019sblpsfc17a5.pdf --- {0}------------------------------------------------ **ITEDSTATES** SECURITIESA DEXCHA 'GECOMMISSI01 Washington, **O.C 20549** | 0MB APPROVAL | | | | | |---------------------------|-----------------|--|--|--| | 0MB Number: | 3235-0123 | | | | | Expires: | August 31, 2020 | | | | | Estimated average burden | | | | | | hours oer resoonse 12.00 | | | | | # **ANNUAL AUDITED REPORT FORM X•17A-5 PARTIII** | SEC FILE NUMBER | |-----------------| | s-52028 | **FACI G PAGE** **Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGIN ING __ | 0
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MMIDDNY | | | |-------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|-------------------------------------|-----------------------------------------------|--|--| | A. REGISTRANT IDENTIFICATION | | | | | | | AME OF BROKER-DEALER: SIG BROKERAGE, LP
ADDRESS OF PRI CIPAL PLACE OF BUSI ESS: (Do not use P.O. Box I o.)
401 CITY AVENUE, SUITE 22
0 | | OFFICIAL USE ONLY | | | | | | | | FIRM I.D. NO. | | | | | (No. and Street) | | | | | | BALACYNWYD | PA | | 190 04 | | | | (Ci1y) | (S1a1e) | | (Zip Code) | | | | AME A D TELEPHO E NUMBER OF PERSO
ROBERT SACK | | TO CO TACT IN REGARD TO THIS REPORT | 610-617-2812
(Arc:i Code-Telephone Number) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | INDEPE DE T PUBLIC ACCOU TANT whose opinion is contained in this Report*
EISNERAMPER | (Name- ifi11divid11al. stall! last.first. middle namtt) | | | | | | 750 THIRD AVENUE | NEW YORK | NY | 10017 | | | | (Address) | (City) | (S1ate) | (Zip Code) | | | | CHECK O E:
I✓ I
certified Public Accountant
Public Accountant | | | | | | | B
Accountant not resident in United States or any of its possessions. | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | *\*Claims for exemption from the req11ireme111 that the a111111al report be covered by the opinion of a11 independent public accountan/ must be supported by a stntemellf of /nets ai,d circumstances relied 011 as the basis for tire e:r.emprion. See See1io11 240.17a-5(e)(2)* > Potential persons who are lo 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. SEC 1410 (06--02) {1}------------------------------------------------ # **OATH OR AFFIRMATION** | I. ROBERT C SACK | | , swear (or affirm) that, to the best of | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------------------------------------------------------------------------| | my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
SIG BROKERAGE, LP | | , as | | DECEMBER 31
of | • 20 19 | . are true and correct. I further swear (or affinn) that | | classified solely as that of a customer, except as follows: | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | | Commonwealll1 or Pennsylvania | | | | Notarial Seal
JANINE BEAlY -Nola,y Public
LOWER MERION TWP MONTGOMERY COUNTY
'h-i Commission Expires Mar 22. 2021 | | Signature
TREASURER | | This report *"' contains (check all applicable boxes): | | | | 0 (a) facing Page.
(b) Statement of Financial Condition.
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(c) Statement of Income (Loss). | | | | (d) Statement of Changes in Financial Condition.
(e) Statement of Changes in Stockholders· Equity or Partners· or Sole Proprietors· Capital.
(f) Statement of Changes in Liabilities Subordinated to Claims of Creditors.
(g) Computation of et Capital. | | | | (h) Computation for Determination of Reserve Requfrements Pursuant to Rule J 5c3-3.
(i) Information Relating to the Possession or Control Requirements Under Rule I 5c3-3.
O U | | ) A Reconciliation, including appropriate explanation of the Computation of Net Capital Under Rule 15c3-I and the | | Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3.
consolidation. | | 0 (k) A Reconciliation between the audi1ed and unaudited Statements of Financial Condi1ion with respect to methods of | | (1) An Oath or Affirmation.
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(m) A copy of the SIPC Supplemental Report. | | | | | | (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. | | ** For co11ditio11s of con.fidemial treatmelll of certain portions of this filing, see section 240. I 7a-5(e)(3). | | | {2}------------------------------------------------ **(a limited partnership)** **STATEME T OF FINANCIAL CONDITIO** **December 31, 2019** {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) - # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Partners of SIG Brokerage, LP #### *Opinion on the Financial Statement* We have audited the accompanying statement of financial condition of SIG Brokerage. LP (the "Entity") as of December 31, 2019 and the related notes (collectively referred to as the "financial statement"). In our opinion. the financial statement presents fairly, in all material respects, the financial position of the Entity as of December 31, 2019, in conformity with accounting principles generally accepted in the United States of America. #### Basis *for Opinion* This financial statement 1s the responsibility of the Entity's management. Our responsibility is to express an opinion on the Entity's financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Entity in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud. and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. We have served as the Entity's auditor since 2010. EISNERAMPER LLP New York. New York February 7, 2020 {4}------------------------------------------------ # **Statement of Financial Condition December 31, 2019** | Assets | | |-----------------------------------------|-----------------| | Receivable from clearing broker | 2,019,661
\$ | | Receivable from affiliates | 782,254 | | Other asset | 523 | | Total assets | 2,802,438
\$ | | Liabilities and partners' capital | | | Order execution payables | 471,318
\$ | | Accrued expenses | 32,483 | | Total liabilities | 503,801 | | Partners' capital | 2,298,637 | | Total liabilities and partners' capital | 2,802,438
\$ | {5}------------------------------------------------ #### **Notes to Statement of Financial Condition December 31, 2019** # **NOTE A - ORGANIZATION** SIG Brokerage, LP (the "Entity") is a broker-dealer registered with the Securities and Exchange Commission (the "SEC") and its designated examining regulatory authority is the Financial Industry Regulatory Authority, Inc. The Entity is also a member of the New York Stock Exchange ("NYSE") and the NYSE MKT. As a member, the Entity provides order execution services for affiliated registered broker-dealers on the NYSE and the NYSE MKT. The Entity is owned 99% by SIG Specialists Holdings, Inc. ("SSHI") and 1% by SIG Brokerage, LLC. # **NOTE B - SIGNIFICANT ACCOUNTING POLICIES** The Entity records order execution revenue and related expenses on a trade-date basis. Interest income is recorded on the accrual basis. The Entity maintains cash in bank accounts which, at times, may exceed federally insured limits. In accordance with Accounting Standards Update ("ASU") 2014-09, Contracts with Customers, revenue from contracts includes revenue streams earned from affiliates under current agreements. Each time the Entity executes an order from an affiliate it has fulfilled all performance obligations set forth in the agreement, and therefore, recognizes and records the revenue associated with order execution on a trade date basis. This statement of financial condition has been prepared in conformity with accounting principles generally accepted in the United States of America, which require the use of estimates by management. #### **NOTE C - RECEIVABLE FROM CLEARING BROKER** The clearing and depository operations for the Entity are provided by Merrill Lynch Professional Clearing Corp. At December 31, 2019, the amount receivable from clearing broker reflected on the statement of financial condition represents amounts due from this clearing broker. # **NOTE D - RELATED PARTY TRANSACTIONS** The Entity executes trades for affiliated broker-dealers for which it receives a fee or owes a rebate, based on liquidity provided. The fee is based on monthly order execution charges, plus a surcharge to cover other costs. As of December 31, 2019, the affiliates owed the Entity \$782,254 related to these fees. The Entity is under common control with Susquehanna International Group, LLP ("SIG"). SIG acts as a common payment agent for the Entity and various affiliates for various direct operating expenses. No payable exists related to these direct operating costs at December 31, 2019. SIG may also provide ancillary and administrative services to the Entity and, in such event, such services are provided at no cost to the Entity. Because of its short-term nature, the fair value of the receivable from affiliates approximates its carrying amount. {6}------------------------------------------------ ## **Notes to Statement of Financial Condition December 31, 2019** # **NOTE D - RELATED PARTY TRANSACTIONS (CONTINUED)** The Entity and various other entities are under common ownership and control. As a result, management can exercise its discretion when determining which entity will engage in new or current business activities and/or trade new products. Therefore, the financial position presented herein may not necessarily be indicative of that which would be obtained had these entities operated autonomously. ## **NOTE E - INCOME TAXES** No provision for federal income taxes has been made because the Entity is taxed as a partnership and, therefore, is not subject to federal income taxes. The Entity is currently not subject to state or local income taxes. At December 31, 2019, management has determined that there are no material uncertain income tax positions. # **NOTE F - NET CAPITAL REQUIREMENT** As a registered broker-dealer and member firm of the NYSE, the Ent**i**ty **is s**ubject to the SEC'**s** U*n***i**form Net Cap**i**tal Rule 15c3-1. The Ent**i**ty computes **i**ts *n*et cap**i**tal u*n*der the bas**i**c method perm**i**tted by the rule, which requ**i**res the maintena*n*ce of minimum net cap**i**tal of 6-2/3% of aggregate indebtedness, as def**i**ned, or \$5,000, wh**i**chever **is** greater. At December 31, 2019, the E*n*t**i**ty had net cap**i**tal of \$1,500,860, wh**i**ch exceeded **i**t**s** requirement of \$33,587 by \$1 ,467,273. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.