# MMC SECURITIES LLC X-17A-5 (2024-02-20) — Broker-dealer annual report - Company: MMC SECURITIES LLC - Form: X-17A-5 - Filed: 2024-02-20 - Period: 2023-12-31 - Accession: 0001105818-24-000005 - CIK: 1105818 - File #: 8-52349 - Type: Broker-dealer - Material weakness: No - Auditor: Deloitte & Touche LLP - Auditor location: New York, NY - Contact: Kim Blackmore - Phone: 201-284-4908 - Signed by: Kim Blackmore (Director, Financial and Operations Principal) Original filing: https://www.sec.gov/Archives/edgar/data/1105818/000110581824000005/mmcs2023pubsec.pdf --- {0}------------------------------------------------ MMC SECURITIES LLC (An indirect Wholly-Owned Subsidiary of Marsh & McLennan Companies, Inc.) SEC ID No. 8-52349 STATEMENT OF FINANCIAL CONDITION AND SUPPLEMENTAL SCHEDULES AS OF DECEMBER 31, 2023 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM This repor^t is flied pursuan^t to Rule 17a-5(e)(3) under the Securities Exchange Act of 1934 as ^a PUBLIC DOCUMENT {1}------------------------------------------------ UNITED STATES 0MB APPROVAL SECURITIES AND EXCHANGE COMMISSION Expires: Nov. 30, ²⁰²⁶ Washington, D.C. 20549 Estimated average burden 0MB Number: 3235-0123 hours per response: 12 ## ANNUAL REPORTS SEC FILE NUMBER FoRM X-17A-5 8-52349 PART III PUBLIC | HORIO REL 1 COMAUSE,
11 | | |----------------------------|--| | | | | SEC FILE NUMBER | | | 8-52349 | | FACING PAGE Information Required Pursuant to Rules 17a-S, 17a-12, and lSa-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING 1/1/2023 AND ENDING 12/31/2023 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION ## NAME OF FIRM: MMC Securities LLC TYPE OF REGISTRANT (Check all applicable boxes): Broker-dealer D Security-based swap dealer D Major security-based swap participant ^C Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use ^a P.O. box no.) # 1166 Avenue of the Americas | | (N
d
St
)
et
o.
an
re | | | |------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|--------------------------------------------------------------| | k
N
Y
e
o
r
w | N
e
w | k
Y
o
r | 1
0
0
3
6 | | (C
ity
) | (S
)
ta
te | | (Z
ip
Co
de
) | | PE
R
SO
N
TO
CO
N
TA
CT
W
IT
H
RE
G | A
RD
TO
TH
IS
FI
LI
N
G | | | | i
l
k
K
B
m
a
c
m
o
r
e | 2
0
1
2
8
4
4
0
8
9
-
- | km
.b
1a
ck | @
m
or
e
m
m
c.
co
m | | (N
e)
am | (A
Co
de
Te
le
ph
N
be
r)
re
a
on
e
um
— | (E
ail
A
dd
m
re
ss | ) | | | B.
A
C
C
O
U
N
TA
N
T
ID
EN
TI
FI
CA | TI
O
N | | | PU
BL
IC
IN
D
EP
EN
D
EN
T
A
CC
O
U
N
TA
l
i
h
D
T
&
t
t
e
o
e
o
c
e
u | N
T
ho
ai
rt
nt
se
re
po
s
ar
e
co
ne
w
if
in
di
vi
du
al
las
fir
d | g*
d
in
th
is
id
dl | | | (N
am
k
f
l
l
l
3
0
R
P
o
c
e
e
e
r | ta
te
t,
st,
e
, s
an
m
—
N
Y
k
a
z
a | e)
e
na
m
N
Y | 1
0
0
3
6 | | (A
dd
)
re
ss | e
o
r
w
(C
ity
) | (S
)
ta
te | (Z
ip
Co
de
) | | 1
0
/
2
0
/
2
0
0
3 | | 3
4 | | | (D
of
Re
gi
ati
wi
th
PC
AO
B)
(if
pl
ate
str
on
ap | ic
ab
le
) | (P
CA
OB
Re
gi
ati
str
on | N
be
if
pl
ic
ab
le
)
um
r,
ap | | | FO
R
O
FF
IC
IA
L
U
SE
ON
LY | | | | | | | | \* 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)(1)(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. {2}------------------------------------------------ #### OATH OR AFFIRMATION | Ki
R
la
ck
m
m
or
e
I, | (o
af
fir
th
be
)
th
of
kn
le
d
d
be
lie
f,
st
th
at
to
sw
ea
r
r
m
e
m
y
ow
ge
an
e
,
, | |---------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | fin
ci
al
ai
ni
th
fir
of
rt
rt
to
an
re
po
pe
ng
e
m | M
M
C
Se
rit
ie
LL
C
cu
s
of
as
, | | 2/
20
02
4
, 2 | (o
th
ith
th
is
d
I f
th
af
fir
)
at
tr
t.
r
ne
er
ue
an
co
rr
ec
ur
er
sw
ea
r
m
e
co
m
pa
ny
no
r
an
y | | of
fic
di
ui
le
rt
ct
nt
pa
ne
r,
er
re
or
or
eq
va
pe
rs
,
, | th
be
ha
ri
in
in
cl
si
fi
ed
le
l
et
te
st
t
on
pr
op
ar
y
re
an
y
ac
co
un
as
so
as
e
ca
se
m
ay
s
an
y
y
,
, | | th
of
at
st
as
a
cu
om
er | | | | Signature: | |---------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------| | ROSALIND & CHANDLER
Notary Public - State of New York
NO. 01CH5051493
()unlified In New York County
My Commission Expires Jan 9, 2026 | litle:
Director, Financial & Operations Principal | #### This filing\*\* contains (check all applicable boxes): - •(a) Statement of financial condition. - I (b) Notes to consolidated statement of financial condition. - LI (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). - LI (d) Statement of cash flows. - LI (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - LI (f) Statement of changes in liabilities subordinated to claims of creditors. - LI (g) Notes to consolidated financial statements. - LI (h) Computation of net capital under ¹⁷ CFR 240.15c3-1 or ¹⁷ CFR 240.18a-1, as applicable. - LI (i) Computation of tangible net worth under ¹⁷ CFR 240.18a-2. - LI (j) Computation for determination of customer reserve requirements pursuan^t to Exhibit ^A to ¹⁷ CFR 240.15c3-3. - LI (k) Computation for determination of security-based swap reserve requirements pursuan^t to Exhibit ^B to ¹⁷ CFR 240.15c3-3 or Exhibit A to 17 CFR 240.lSa-4, as applicable. - LI (I) Computation for Determination of PAB Requirements under Exhibit ^A to § 240.15c3-3. - LI (m) Information relating to possession or control requirements for customers under ¹⁷ CFR 240.15c3-3. - LI (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. - LI (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.lSc3-1, 17 CFR 240.lSa-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.lSa-4, as applicable, if material differences exist, or ^a statement that no material differences exist. - LI (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.lSa-7, as applicable. - LI (r) Compliance repor^t in accordance with ¹⁷ CFR 240.17a-5 or ¹⁷ CFR 240.18a-7, as applicable. - LI (s) Exemption repor^t in accordance with ¹⁷ CFR 240.17a-5 or ¹⁷ CFR 240.18a-7, as applicable. - I (t) Independent public accountant's repor^t based on an examination of the statement of financial condition. - LI (u) Independent public accountant's repor^t based on an examination of the financial repor^t or financial statements under ¹⁷ CFR 240.17a-5, 17 CFR 240.lSa-7, or 17 CFR 240.17a-12, as applicable. - LI (v) Independent public accountant's repor^t based on an examination of certain statements in the compliance repor^t under ¹⁷ CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - LI (w) Independent public accountant's repor^t based on ^a review of the exemption repor^t under ¹⁷ CER 240.17a-5 or ¹⁷ CFR 240.lSa-7, as applicable. - LI (x) Supplemental reports on applying agreed-upon procedures, in accordance with ¹⁷ CFR 240.15c3-le or ¹⁷ CR 240.17a-12, as applicable. - LI (y) Report describing 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). - LI (z) Other: - \*\*To reques^t confidential treatment of certain portions of this filing, see ¹⁷ CFR 240.17o-S(e)(3) or ¹⁷ CFR 240.18a-7(d)(2), as applicable. {3}------------------------------------------------ ## —Deloitte & Touche LLP DeIoitte. 3ei ⁵ Tel: +1 2124924000 Fax: .1 2124891687 wM,.deIoitte.com ## REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Directors and Equity Owner of MMC Securities LLC: #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of MMC Securities LLC (the "Company") as of December 31, 2023, 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 Company as of December 31, 2023, in conformity with accounting principles generally accepted in the United States of America. ### Basis for Opinion The financial statement is the responsibility ofthe Company's management. Our responsibility is to express an opinion on this 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 respec^t to the Company 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 of the financial statement provides ^a reasonable basis for our opinion. T0-%e UP February 20, 2024 We have served as the Company's auditor since 1989. {4}------------------------------------------------ #### MMC SECURITIES LLC (an Indirect Wholly-Owned Subsidiary of Marsh & McLennan Companies, Inc.) #### STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2023 #### ASSETS | ui
le
C
h
d
sh
nt
as
an
ca
eq
va
s
ei
bl
fr
af
fi
li
R
at
ec
va
e
om
es
d
is
si
iv
ab
le
Fe
es
an
co
m
m
on
s
re
ce
R
ei
bl
fr
cl
ri
ni
ti
ec
va
e
om
ea
ng
or
ga
za
on
O
th
er | ,1
1
,8
02
\$
6
9
63
8
04
,5
31
,7
5
,9
91
51
,6
21
4
,9
91
24
4
,4
31 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------| | O
A
A
SS
S
T
T
L
E
T | \$
65
1
,3
47
,4
06 | | A
N
D
S
'S
Q
L
IA
B
IL
IT
IE
M
E
M
B
E
R
E
U
IT
Y | | | L
IA
B
IL
IT
IE
S
:
A
ed
d
he
lia
bi
lit
ie
ot
cc
ru
ex
pe
ns
es
an
r
s
P
ab
le
af
fi
lia
to
te
ay
s
D
ef
d
er
re
re
ve
nu
e | 20
3
,0
53
S
10
7
,3
09
65
,0
69 | | T
al
li
ab
ili
tie
ot
s | 37
5
,4
31 | | 'S
Q
M
E
M
B
E
R
E
U
IT
Y
: | 65
0
1
75
,9
7
,9 | | T
O
T
A
L
L
IA
B
IL
IT
IE
S
A
N
D
M
E
M
B
E
R
'S
E
Q
U
IT
Y | 65
1.
34
7.
40
S
6 | See notes to financial statement. {5}------------------------------------------------ ### MMC SECURITIES LLC (an Indirect Wholly-Owned Subsidiary of Marsh & McLennan Companies, Inc.) #### NOTES TO STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 2023 ## 1. NATURE OF BUSINESS MMC Securities LLC (the "Company") is an indirect wholly-owned subsidiary of Marsh & McLennan Companies, Inc. ("MMC"). The Company's sole member is Marsh Insurance and Investments LLC (the "Member"). The Company is ^a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is ^a member of the Financial Industry Regulatory Authority, Inc. ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). The Company is also registered as an introducing broker with the National Futures Association ("NFA"). The Company provides the following services: - •Underwriting and private placement of catastrophe bonds; - • Investment banking advisory services on sales, acquisitions, capital raising and financial risk solutions through structured transactions; - •Sale of variable products to institutional clients. The Company does not hold customer securities or customer funds and clears transactions through Pershing LLC on ^a fully disclosed basis. #### 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation -The statement of financial condition is prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP"). The Company has performed its evaluation of the subsequent events through the issuance date of the statement of financial condition. Based upon such evaluation, no events were discovered that required disclosure or adjustment to the statement of financial condition. Use of Estimates -The preparation of the statement of financial condition in conformity with US GAAP requires managemen^t to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the statement of financial condition. Actual results could differ from those estimates. Cash and Cash Equivalents -Cash equivalents consist of demand deposits with original maturities of three months or less. The estimated fair value of the Company's cash equivalents approximates their carrying value due to their short-term nature. All of the cash and cash equivalents are held in one major financial institution. Allowance for Credit Losses on Accounts Receivable -The Company's policy for providing an allowance for credit losses ("CECL") on its accounts receivable is based on management's best estimate of amounts that will be uncollectible primarily based on the Company's historical experience of collections in its various businesses or other events that may affect the net realizable value of the receivables. There was no allowance for credit losses for the year ended December 31, 2023. {6}------------------------------------------------ Income Tax - The Company is treated as ^a disregarded entity for federal and state income tax purposes; therefore, the taxable income or loss from the Company's operations is allocated to the Member. Accordingly, no provision for federal and state income taxes has been made in the accompanying financial statement. The Company is not subject to federal or state tax audits as an entity separate from the Member. Fair Value of Financial Assets and Liabilities - Substantially all of the Company's financial assets are carried at fair value or contracted amounts which approximate fair value. The Company's financial liabilities, such as payables, are recorded at amounts approximating fair value. #### 3. CONTRACT BALANCES FROM CONTRACTS WITH CUSTOMERS The timing of the Company's revenue recognition may differ from the timing of paymen^t by its customers. The Company records receivables when revenue is recognized prior to paymen^t and it has an unconditional right to payment. The changes in the receivables during the year are related to services invoiced, paymen^t of invoices and adjustments for impairment of the receivable. Alternatively, when paymen^t precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. The following presents the Company's contract receivables related to revenue from customers that have been billed not ye^t collected and deferred revenue that has been billed but the performance obligation has not ye^t been satisfied as of December 31, 2023: #### Contract receivables (in 000's) | | E
nd
in
B
al
g
an
ce
D
be
r3
1
20
23
ec
em
, | O
ni
B
al
pe
ng
an
ce
Ja
1
,2
02
3
nu
ar
y | |--------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------| | nd
ri
tin
fe
U
er
w
g
es | S
3
,3
33 | S
- | | Pr
iv
Pl
fe
at
t
e
ac
em
en
es | 25
0 | 31
4 | | O
th
C
is
si
er
om
m
on
s | | 30 | | T
al
iv
ab
le
ot
nt
ct
co
ra
re
ce
s | \$
3
,5
83 | 34
4
S | | ef
d
(in
D
00
0'
s)
er
re
re
ve
nu
e | | | | | nd
in
al
E
B
g
an
ce | O
ni
al
B
pe
ng
an
ce | | | D
be
1
20
23
3
ec
em
r
, | Ja
1
20
23
nu
ar
y
, | | nd
ri
tin
fe
U
er
g
es
w | 65
\$ | 38
S | | T
al
de
fe
ed
ot
rr
re
ve
nu
e | 65
S | 38
S | #### 4. RELATED PARTY TRANSACTIONS As of December 31, 2023, the Company's receivable from affiliates balance of \$638,704,531 is mainly comprised of interest bearing accounts. The Company transfers certain excess operating cash balances on its accounts with ^a third party bank to an interest bearing account with MMC for cash managemen^t purposes. The estimated fair value of the Company's receivable approximates its carrying value. {7}------------------------------------------------ As of December 31, 2023, the Company's payables to affiliates balance oC\$107,309 primarily represen^t liabilities for services purchased as well as accounts payable invoices oftet by receivables for administration service fees. Payables to affiliates are settled on ^a monthly basis. ### 5. CREDIT FACILITIES MMC and certain of its subsidiaries have ^a \$2.8 billion multi-currency five year unsecured revolving credit facility (the "Credit Facility") to suppor^t their liquidity needs. The Company is designated as ^a pernittted borrower under the Credit Facility. The Credit Facility was terminated on October Il, 2023. There were no drawings on the Credit Facility during the year. ### 6. COMMITMENTS AND CONTINGENCIES The Company has no cormnitments or contingencies as of December 31, 2023. ### 7. NET CAPITAL REQUIREMENTS The Company is subject to the Unifonn Net Capital Rule (Rule 15c3-l) under the Securities Exchange Act of 1934. The Company computes its nd capilal requirement under the alternate method provided for in Rule l5e3-1, which requires the Company to maintain minimum net capital. as defined, of 5250.000 or 2% of aggregate debit items arising from customer transactions, as defined. At December 31, 2023, the Company had net capital of 55.927,242. which was \$5,677,242 in excess of its required net capital of 5250,000. As an introducing broker registered with the NFA, the Company is required to and has complied with the Uniform Net Capital Rule (Rule 15c3-l I, as discussed above, to meet the requirements of Regulation 1.17 of the Commodity Futures Trading Commission. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.