# SIG BROKERAGE, LP X-17A-5 (2021-02-25) — Broker-dealer annual report

- Company: SIG BROKERAGE, LP
- Form: X-17A-5
- Filed: 2021-02-25
- Period: 2020-12-31
- Accession: 0001094429-21-000001
- CIK: 1094429
- File #: 8-52028
- Material weakness: No
- Auditor: EisnerAmper,LLP
- Auditor location: New York, NY
- Contact: Robert C Sack
- Phone: 610-617-2812
- Signed by: Robert C Sack (Treasurer)

Original filing: https://www.sec.gov/Archives/edgar/data/1094429/000109442921000001/sblpsfc.pdf

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**UNITEDSfATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 

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## **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill**

**SEC FILE NUMBER**  a-52028

### **FACING PAGE**

**Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** 

| 20<br>REPORT FOR THE PERIODBEGINNING01                                                                                                      |                              | 12/31/20<br>--<br>---                                                                                                                                                                                                                                                                                                                                                                  |  |
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| NAME OF BROKER-DEALER: SIG BROKERAGE, LP<br>ADDRESS OF PRlNCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)<br>401 CITY AVENUE, SUITE 220 |                              | OFFICIAL USE ONLY                                                                                                                                                                                                                                                                                                                                                                      |  |
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| PA                                                                                                                                          |                              | 1 9004                                                                                                                                                                                                                                                                                                                                                                                 |  |
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| NEWYORK                                                                                                                                     | NY                           | 10017                                                                                                                                                                                                                                                                                                                                                                                  |  |
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| FOR OFFICIAL USE ONLY                                                                                                                       |                              |                                                                                                                                                                                                                                                                                                                                                                                        |  |
|                                                                                                                                             | /01<br>/<br>(No. and Street) | ---<br>AND ENDING<br>A. REGISTRANT IDENTIFICATION<br>NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT<br>610-617-2812<br>B. ACCOUNT ANT IDENTIFICATION<br>INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report•<br>(Name-if Individual, state last,firs� middle name)<br>Accountant not resident in United States or any of its possessions. |  |

*must be supported by a statement o/fttcts and circumstances relied on as the basis/or the exemption. See Section 240.17a-5{e){2}* 

**Potential persons who are to respond to the collectlon of**  Information contained in this form are not required to respond **unless the form di splays a currentlyvalld 0MB control number.** 

SEC 1410 (11-05)

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#### **OATH OR AFFIRMATION**

| I, __R<br>O<br>_B_E__T_S_A_C_K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | ______________________ , swear (or affirm) that, to the best of                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of<br>SIG BROKERAGE,<br>LP<br>-<br>-------------------<br>-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | ---<br>------------------'�                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| of DECEMBER 31<br>------� 2020                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | are true !ll!d 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 offic.er or director has any proprietary interest in any account                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | �-<br>Signature                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | TREASURER<br>Title                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| This report** contains (check all applicable boxes):<br>0 (a) Facing Page.<br>0 (b) Statement ofFinancial Condition.<br>of Comprehensive Income (as defined in §210.1-02 of Regulation S-X).<br>D (d) Statement of Changes in financial Condition.<br>D {e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital.<br>§<br>D (f) Statement of Changes in Liubi lities Subordinated to Claims of Creditors.<br>(g) Computation of Net Capital.<br>(h) Computation for Determination of Reserve Requirements Pursuant to Rule 1Sc3-3.<br>(i) lttfo!'ination Relating to the Possession or C011trol Requirements Under Rule 15c3-3.<br>Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3.<br>D (k) A Reconciliation between the audited and unaudited Statements of Financial Condition with res<br>eon sol idation.<br>0 (I) An O<br>ath or Affirmation.<br>D (m) A copy of the SIPC Supplemental Report. | Commonwealth of l'ennsylvania • Notaiy Seal<br>LISA E SPONTAK, Notary Public<br>l<br>'I<br>Montgomery County<br>____________ _<br>My Commission Expires Dec. 16, 2023<br>Commission Number 1286050<br>�,<br>D (c) Statement oflncome (Loss) or, ifthere is other comprehensive income in the period(s) presented, a Statement<br>D (j) A Reconciliation, including appropriate explanation of the Computation ofNet Capital Under Rule 1 Sc3-l and the<br>pect to methods of |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | D (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit.                                                                                                                                                                                                                                                                                                                                            |
| ** For conditions of confidential treatment of certain portions of this filing, see section 240. I 7a-5(e){3).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

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**(a limited partnership}** 

**STATEMENT OF FINANCIAL CONDITION** 

**December 31, 2020** 

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![](_page_3_Picture_0.jpeg)

EisnerAmper LLP 733 Third Avenue New York. NY 10017 **<sup>T</sup>**212.949.8700 **<sup>f</sup>**212.891.4100

### **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, 2020** 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, 2020,** in conformity with accounting principles generally accepted in the United States of America.

#### *Basis tor Opinion*

This financial statement is 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 Yori<, New York February **17, 2021** 

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### **Statement of Financial Condition December 31, 2020**

| Assets                                  |                 |
|-----------------------------------------|-----------------|
| Receivable from clearing broker         | \$<br>3,766,414 |
| Receivable from affiliates              | 978,998         |
| Accrued trading receivable              | 71              |
| Other asset                             | 523             |
| Total assets                            | \$<br>417461006 |
| Liabilities and partners' capital       |                 |
| Order execution payables                | \$<br>869,741   |
| Accrued expenses                        | 36,332          |
| Total liabilities                       | 906,073         |
| Partners' capital                       | 3,839,933       |
| Total liabilities and partners' capital | \$<br>4z7461006 |

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**Notes to Statement of Financial Condition December 31, 2020** 

### **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 Ml<T. 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-<late 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.* 

*Effective January 1, 2020, the Entity adopted Accounting Standards Codification ("ASC") Topic 326, Financial Instruments-Credit Losses ("ASC 326"}. ASC 326 impacts the impairment model for certain financial assets measured at amortized cost by requiring a current expected credit loss C-CECL n) methodology to estimate expected credit losses over the life of the financial asset, as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. Upon adoption of ASC 326, the Entity has determined that there are no expected credit losses using the prescribed CECL model.* 

*Receivable from clearing broker; the Entity has concluded that there are currently no expected credit losses based on the nature and contractual life or expected life of the financial assets held at the Entity's clearing broker. The Entity continually monitors the capital adequacy of such organizations to ensure they are in compliance with respect to each of their regulatory mandated capital requirements.* 

*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, 2020, 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, 2020, the affiliates owed the Entity \$978,998 related to these fees.* 

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*Notes to Financial Statements December 31, 2020* 

### *NOTE D - RELATED PARTY TRANSACTIONS (CONTINUED)*

*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, 2020. 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.* 

*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 f: - 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, 2020, 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 Entity is subject to the SEC's Uniform Net Capital Rule 15c3-1. The Entity computes its net capital under the basic method permitted by the rule, which requires the maintenance of minimum net capital of 6-2/3% of aggregate indebtedness, as defined, or \$5,000, whichever is greater. At December 31, 2020, the Entity had net capital of \$2,845,412, which exceeded its requirement of \$60,405 by \$2,785,007.*


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