# IMC-CHICAGO, LLC X-17A-5 (2025-02-28) — Broker-dealer annual report - Company: IMC-CHICAGO, LLC - Form: X-17A-5 - Filed: 2025-02-28 - Period: 2024-12-31 - Accession: 0001115193-25-000001 - CIK: 1115193 - File #: 8-52600 - Type: Broker-dealer - Material weakness: No - Auditor: PricewaterhouseCoopers, LLC - Auditor location: Chicago, IL - Contact: Paul Nowicki - Phone: 3122047442 - Email: paul.nowicki@imc.com - Website: imc.com - Signed by: Paul Nowicki (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1115193/000111519325000001/Public_IMC_2024.pdf --- {0}------------------------------------------------ # IMC-Chicago, LLC Statement of Financial Condition December 31, 2024 Available for Public Inspection {1}------------------------------------------------ | | (No. and Street) | | | |----------------------------------------------------------------------------------------------------------|------------------------------------------------------------|--------------------------------------------|----------------------| | Chicago | Illinois | | 60606 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Paul Nowicki | (312) 204-7442 | | paul.nowicki@imc.com | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
PricewaterhouseCoopers, LLP | (Name - if individual, state last, first, and middle name) | | | | One North Wacker Drive | Chicago | Illinois | 60606 | | (Address) | (City) | (State) | (Zip Code) | | October 20, 2003 | | 238 | | | (Date of Registration with PCAOB)(if applicable) | | (PCAOB Registration Number, if applicable) | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | {2}------------------------------------------------ | Paul Nowicki | | swear (or affirm) that, to the best of my knowledge and belief, the | |------------------------|-------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------| | | financial report pertaining to the firm of IMC-Chicago, LLC | as of | | 12/31 | | 2024, 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 | | as that of a customer. | | | | | | | | | EMILY PARKER | Signature: | | | Official Seal | | | | Notary Public - State of Illinois | Title: | | | My Commission Expires Jan 13, 2027 | | - - - - - - - - - - - - - - - - - - - - - - - - - - {3}------------------------------------------------ | IMC-Chicago, LLC
Index
December 31, 2024 | | |---------------------------------------------------------|---------| | | Page(s) | | Report of Independent Registered Public Accounting Firm | 1 | | | | | Statement of Financial Condition | | | Statement of Financial Condition | 2 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # Report of Independent Registered Public Accounting Firm # Opinion on the Financial Statement – Statement of Financial Condition # Basis for Opinion {5}------------------------------------------------ | Assets | | |--------------------------------------------------------------------|----------------------| | Cash | \$
154,311,368 | | Receivable from clearing brokers | 848,924,686 | | Securities owned, at fair value | 29,091,605,817 | | Dividends receivable | 8,320,890 | | Interest receivable | 249,704 | | Receivable from affiliates | 2,702,316 | | Other assets | 17,474,560 | | Right of Use Assets - Operating | 15,883,921 | | Memberships in exchanges, at cost (fair value \$1,867,000) | 1,664,000 | | Equipment, hardware and leasehold improvements | | | (net of accumulated depreciation and amortization of \$78,948,202) | 31,111,076 | | Total assets | \$
30,172,248,338 | | | | | Liabilities and Member's Capital | | | Liabilities | | | Securities sold, not yet purchased, at fair value | \$
29,278,869,206 | | Dividends payable | 6,340,801 | | Accrued compensation | 273,301,882 | | Payable to affiliates | 107,530,804 | | Right of Use Liabilities - Operating | 28,102,139 | | Accounts payable and accrued expenses | 101,765,478 | | Total liabilities | 29,795,910,310 | | Member's capital | 376,338,028 | | Total liabilities and member's capital | \$
30,172,248,338 | | | | The accompanying notes are an integral part of the statement of financial condition. {6}------------------------------------------------ # Organization 1. Organization and Summary of Significant Accounting Policies IMC-Chicago, LLC's (the "Company") primary business is to conduct proprietary trading of securities and options on securities as a registered market maker. Effective January 1, 2024, IMC B.V. was fully acquired by IMC Global Holdings, LLC (the "Ultimate Parent"). The Company is a wholly owned subsidiary of IMC Americas, Inc (the "Parent") which is ultimately a wholly owned subsidiary of the Ultimate Parent. The Company is an Illinois limited liability company established on April 27, 2000. The Company's principal operations are located in Chicago, Illinois. In accordance with regulations under the Securities Exchange Act of 1934, the Company is registered as a broker-dealer with the Securities and Exchange Commission (the "SEC") and is a member of the Chicago Board Options Exchange ("CBOE"), and various exchanges. The Company does not trade on behalf of customers and effects transactions only with other registered broker-dealers and other exchange members. The Company is a member of the Financial Industry Regulatory Authority, Inc. and the Securities Investor Protection Corporation. # Cash The Company maintains cash in bank deposit accounts that, at times, may exceed federally insured limits. # Memberships in Exchanges Memberships in exchanges which represent only the right to conduct business on the exchange are accounted for as indefinite life intangible assets which are reviewed annually for impairment. Memberships in exchanges that represent ownership interests in an exchange and provide the Company the right to conduct business on the exchange are recorded at cost or, if an other-than-temporary impairment in value has occurred, at a value that reflects management's estimate of the impairment. The disclosure of the fair market value of the exchange memberships is based on recent sales, where available. ## Income Taxes For purposes of federal and state income taxes, the Company's status as a separate tax entity is disregarded. As such, the operations of the Company are treated as held directly by its sole member, the Parent. Accordingly, the Parent is responsible for reporting the Company's taxable income or loss and has elected not to push down the effects of income taxes to the Company. There are no tax sharing arrangements between the Company and the Parent. Additionally, there are no obligations for the Company to fund the tax liabilities of the Parent. The Company is included in the consolidated federal and state income tax returns filed by the Parent. ## Equipment, Hardware and Leasehold Improvements Equipment, hardware, furniture and fixtures, and leasehold improvements are recorded at cost, net of accumulated depreciation. Depreciation is provided on a straight-line basis using estimated useful lives of the assets, which are three years for equipment and hardware and the lesser of the useful life of the asset, five years for furniture and fixtures and the lesser of the useful life of the asset, or lease term for leasehold improvements. {7}------------------------------------------------ ## Receivable from Clearing Brokers Receivable from clearing brokers on the statement of financial condition includes cash held on deposit at the clearing brokers for open positions, amounts due from brokers for the net settlement of trades and variation margin for open future positions. The Company may obtain short-term financing from its brokers through borrowing against its proprietary positions, subject to collateral maintenance requirements. # Other Assets Other assets on the statement of financial condition includes prepayments, intangible assets, and receivables from third parties. Intangible assets are amortized over their respective estimated useful lives to their estimated residual values, and reviewed for impairment. Intangible assets resulting from the purchase of the primary and lead market maker rights are amortized over five years using the straight-line method. # Securities Owned and Securities Sold, not yet purchased Substantially all of the Company's securities owned and securities sold, not yet purchased, are held at major financial institutions which are permitted by contract or custom to sell or repledge these securities. Securities owned and securities sold, not yet purchased are reflected in the statement of financial condition at fair value (see Note 2). # Financial Instruments Management estimates the aggregate carrying value of other financial instruments (including receivables and payables) recognized on the statement of financial condition approximates their fair value as such financial instruments are short-term in nature, bear interest at current market rates or are subject to frequent repricing. # Foreign Currency Securities and cash deposits with brokers denominated in foreign currencies are translated into U.S. dollar amounts at the spot rate on the date of valuation. Purchases and sales of securities denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Company does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. ## Use of Estimates The preparation of the statement of financial condition in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the statement of financial condition. Actual results may differ significantly from those estimates. Financial assets measured at amortized cost are to be presented at the net amount expected to be collected utilizing the current expected credit loss methodology to estimate expected credit losses over the remaining expected life of the financial assets. Expected credit losses are measured based on historical experience, current conditions and forecasts that impact the collectability of the amount. The guidance only impacts the Company's financial instruments recorded at amortized cost such as receivable from brokers, dealers, and clearing organizations. This does not have a material impact on the Company's financial condition or regulatory requirements. {8}------------------------------------------------ # Segment Reporting The Company operates as a single line of business as a registered market maker, which comprises of conducting proprietary trading of securities and options on securities. The Company has identified its Chief Executive Officer as the Chief Operating Decision Maker (CODM), who uses the statement of financial condition information provided herein in order to make operational decisions for the Company. The Companys operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The statement of financial condition reflects the operating single segment results as of December 31, 2024. 2. Fair Value of Financial Instruments The guidance for fair value measurements and disclosures establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: - Level 1 Inputs that reflect unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date; - Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly, including inputs in markets that are not considered to be active; and - Level 3 Inputs that are unobservable. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. As of December 31, 2024, the Company did not own any financial assets or liabilities that would be considered Level 3 within the hierarchy described above. All securities held at December 31, 2024 are part of the Companys proprietary trading strategy. The following table presents securities owned at fair value as of December 31, 2024: | Description | December 31, 2024 | Quoted Prices in
Active Markets
for Identical
Assets Level 1 | Significant Other
Inputs
Level 2 | Significant
Unobservable
Inputs Level 3 | |-------------------------------------------|----------------------|-----------------------------------------------------------------------|----------------------------------------|-----------------------------------------------| | Assets: | | | | | | Equity securities & exchange traded funds | \$
3,934,767,584 | \$
3,934,767,584 | \$
- | \$
- | | Options | 25,156,838,232 | 25,156,838,232 | - | - | | Futures(1) | 284,160,957 | 284,160,957 | - | - | | Total | \$
29,375,766,773 | \$
29,375,766,773 | \$
- | \$
- | | Liabilities: | | | | | | Equity securities & exchange traded funds | \$
1,976,046,304 | \$
1,976,046,304 | \$
- | \$
- | | Options | 27,302,822,902 | 27,302,822,902 | - | - | | Futures(1) | 108,944,250 | 108,944,250 | - | - | | Total | \$
29,387,813,456 | \$
29,387,813,456 | \$
- | \$
- | (1) Represents unrealized appreciation/depreciation on futures which is included net in Receivable from clearing brokers on the statement of financial condition. There were no significant transfers of financial instruments from Level 1 or Level 2 to Level 3 during the year ended December 31, 2024. {9}------------------------------------------------ # IMC-Chicago, LLC Notes to Statement of Financial Condition December 31, 2024 3. Fixed Assets Equipment and leasehold improvements at December 31, 2024 comprised the following: | Computers | \$
88,167,247 | |--------------------------|------------------| | Leasehold improvements | 15,284,580 | | Software | 3,762,172 | | Furniture & fixtures | 2,845,279 | | Accumulated depreciation | (78,948,202) | | | \$
31,111,076 | 4. Derivative and Hedging Activities The Company is subject to the authoritative guidance regarding derivative and hedging disclosures. This guidance is intended to enhance statement of financial condition disclosure for derivative instruments and hedging activities and enable investors to better understand: a) how and why the Company uses derivative instruments; b) how derivative instruments are accounted for; and c) how derivative instruments affect the Company's financial position. The Company records derivative instruments at fair value. Even though the Company's investment in derivatives may represent economic hedges, under this guidance they are considered to be non-hedge transactions for financial reporting purposes. The derivatives used by the Company are subject to various risks similar to those related to the underlying financial instruments, including market risk. The Company uses these instruments in the normal course of its business to take proprietary trading positions and to manage market risk. The Company recognizes all of its derivative contracts as either assets or liabilities on the statement of financial condition at fair value. The Company transacts in derivative financial instruments, including exchange-traded options and futures. These are instruments whose values are based, in part, upon underlying assets, indices or reference rates, or a combination of these factors, and generally represent future commitments to exchange cash flows, or to purchase or sell other financial instruments at specified future dates. Exchange-traded derivative financial instruments are standardized and include futures and certain options contracts. Options are contracts that grant the holder of the option, in return for payment of the purchase price (the "premium"), the right to either purchase or sell a financial instrument at a specified price within a specified period of time or on a specified date, from or to the writer of the option. The writer of options receives premiums and bears the risk of unfavorable changes in the market price of the financial instruments underlying the options, changes in interest rates and market volatility (as applicable). Options written by the Company do not give rise to counterparty credit risk in excess of any unpaid premium because, if exercised by the counterparty they obligate the Company, not its counterparty, to perform. Options written by the Company create off-balance sheet risk, as the Companys contingent obligation to satisfy the purchase or sale of securities underlying such options may exceed the amount recognized on the statement of financial condition. Futures contracts are commitments to either purchase or sell a financial instrument or commodity at a future date for a specified price. These contracts may, in general, be settled in cash or through delivery of the underlying instrument. Futures contracts can be closed out at the discretion of the Company. However, illiquidity in the market could prevent the timely close-out of any unfavorable positions or require the Company to hold those positions until their expiration date, regardless of the changes in their value or the Company's investment strategy. The Company attempts to manage market risk in accordance with risk limits set by the Company by buying or selling instruments or entering into offsetting positions. {10}------------------------------------------------ The Company is exposed to interest rate risk when there is an unfavorable change in the value of investments as a result of adverse movements in market interest rates. The Company entered into interest rate swaps to help mitigate this risk. Interest rates swaps are contracts in which counterparties exchange different rates of interest on a specified notional amount for a specified period of time. The payment flows are usually netted against each other, with the difference paid by one party to another. The following table sets forth the fair value and the number of the Companys derivative contracts by underlying investment type as of December 31, 2024. Gross derivative contracts in the table below exclude the effect of netting and do not represent the Company's actual exposure which may ultimately be reduced by netting agreements. | | Derivative
Assets | Derivative
Liabilities | Number of
Contracts | |--------------------------------------------------------------------------------------------------------|----------------------|---------------------------|------------------------| | Options | \$
25,156,838,232 | \$
27,302,822,902 | 31,616,641 | | Futures | 284,160,957 | 108,944,250 | 130,246 | | Gross fair value of derivative contracts | \$
25,440,999,189 | \$
27,411,767,152 | 31,746,887 | | Amounts that have been offset in the
statement of financial condition counterparty
netting(1)(3) | (108,944,250) | (108,944,250) | | | Net derivative contracts presented in the
statement of financial condition | 25,332,054,939 | 27,302,822,902 | | | Amounts that have not been offset in the
statement of financial condition(2)(3) | (25,332,054,939) | (25,332,054,939) | | | Net Exposure | \$
- | \$
1,970,767,963 | | (1) Amounts relate to master netting arrangements and collateral arrangements which have been determined by management to be legally enforceable in the event of default. Amounts are reported on a net basis in the statement of financial condition when criteria are met in accordance with applicable accounting guidance on offsetting. (2) Amounts relate to master netting arrangements and collateral arrangements which have been determined by management to be legally enforceable in the event of default. The Company may have both derivative and non-derivative activities with the same clearing broker. (3) For purposes of the above disclosure, the Company has assumed that collateral would first be applied to derivative transactions. The collateral amounts may exceed the related net amounts of financial assets and liabilities presented in the statement of financial condition. Where this is the case, the total amount reported is limited to the net amounts of financial assets and liabilities. The fair values of options in the table above are reflected in securities owned and securities sold, not yet purchased, at fair value on the statement of financial condition. The fair values of futures are presented gross in the table above and are recorded net in receivable from clearing brokers on the statement of financial condition. The number of open contracts as of December 31, 2024 approximates the number of outstanding contracts throughout the year. The Company attempts to manage the risks associated with its derivative financial instruments along with its speculative investing activities in cash instruments as part of its overall risk management process (discussed in Note 5). {11}------------------------------------------------ 5. Risk Management In the normal course of business, the Company enters into transactions in financial instruments with varying degrees of market and credit risk. These financial instruments consist primarily of equity securities, exchange traded funds, options, futures, and U.S. treasury securities. Settlement of these transactions generally takes place in the United States through clearing brokers utilized by the Company. These instruments are typically transacted on a highly leveraged basis and involve elements of market and credit risk that may exceed the amounts reflected on the statement of financial condition. Market risk arises from fluctuations in interest rates, volatilities, foreign exchange rates, future dividend expectations and equity prices. Securities sold, not yet purchased, at fair value represent obligations of the Company to deliver specific securities at the contracted prices and thereby create a liability to purchase the securities in the open market at prevailing prices. These transactions may result in market risk not reflected on the statement of financial condition as the Companys ultimate obligation to satisfy its obligation for trading liabilities may exceed the amount reflected on the statement of financial condition. The Company generally invests on a highly leveraged basis, through margin and borrowing arrangements and through the degree of leverage typically embedded in the derivative financial instruments in which it invests. Leverage through margin borrowings requires collateral to be posted with the Companys brokers. The Companys brokers generally have broad discretionary authority over valuing the collateral posted and requiring the posting of additional collateral. The brokers may have the right to reduce the value of such collateral or to require the posting of additional collateral even if no actual transaction in the underlying instrument has occurred, potentially resulting in the issuance of a margin call. This could also result in the Company having to sell assets at a time when the Company would not otherwise choose to do so. Since the Company does not clear its own securities and futures transactions, it has established accounts with clearing brokers for this purpose. This results in a concentration of credit risk with these firms. Such risk, however, is mitigated by each clearing brokers obligation to comply with rules and regulations of the SEC or the CBOE. The Company is a member of various exchanges that trade and clear securities and/or futures contracts. Associated with its membership, the Company may be required to pay a proportionate share of the obligations of another member who may default on its obligation to the exchange. While the rules governing different exchange memberships vary, in general, the Company's guarantee obligations would arise only if the exchange had previously exhausted its resources. In addition, any such guarantee obligation would be apportioned among the other non-defaulting members of the exchange. Any potential liability under these membership agreements cannot be estimated. The Company has not recorded any contingent liability in the statement of financial condition for these agreements and believes that any potential requirement to make payments under these agreements is remote. The cash balances held at various major U.S. financial institutions, which typically exceed Federal Deposit Insurance Corporation insurance coverage, also subject the Company to a concentration of credit risk. The Company attempts to mitigate the credit risk that exists with the deposits in excess of insured amounts by regularly monitoring the credit ratings of such financial institutions. Legal, tax and regulatory changes could occur during the term of the Company that may adversely affect the Company. As a registered broker-dealer and a registered market maker, the Company is subject to comprehensive statutes, regulations and other requirements. The effect of any future regulatory change or other regulatory action by any regulator or self-regulatory organization, whether in the ordinary course or the result of an extraordinary market event, could be significant. {12}------------------------------------------------ 6. Subordinated Borrowings The Company has a subordinated revolving loan agreement with one bank. The original agreement was entered into on May 21, 2018, and was amended on July 18, 2024. The loan provided for maximum borrowings of \$25,000,000. The commitment period for the subordinated revolving loan extended to July 18, 2025, with a maturity date of July 18, 2026. The loan borrowings under the revolving loan bear interest with reference to either the Base Rate, plus 225 basis points or term SOFR plus the SOFR Adjustment, plus 500 basis points, at the Company's election. The subordinated borrowings can be treated as an addback to the Company's net capital under the SEC Rule 15c3-1 (the "Net Capital Rule") and may be repaid only if the Company continues to meet minimum net capital and other prepayment and repayment requirements as defined in the Net Capital Rule after giving effect to such prepayment or repayment and after receipt of approval from the SEC and other regulatory bodies to make such payment. The revolving loan is subject to a number of restrictive covenants that, in part, limit the ability of the Company to create liens on assets, engage in mergers and consolidations, incur indebtedness for borrowed money, declare dividends, or dispose of assets. The financial covenants under the loan require the Company to maintain a minimum amount of tangible net worth, as defined in the amended loan documents, not to be less than \$75,000,000; to maintain a total maximum senior debt to total capitalization ratio, as defined in the loan documents, of no more than 0.23 to 1; and to maintain excess net capital, as defined in the loan documents, of no less than the greater of \$10,000,000 or 120% of the minimum amount of Excess Net Capital required by the SEC. There were no new borrowings during or as of December 31, 2024. 7. Leases The Company has operating leases for certain office space under a noncancelable lease expiring in 2033. In addition, the Company's operating leases contain software and trading, communication and information technology systems from various service providers. The Company's leases have remaining lease terms of less than one year to nine years. The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the statement of financial condition. All other operating leases are recorded on the statement of financial condition with right-of-use assets representing the right to use the underlying asset for the lease term and lease liability representing the obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The right-of-use assets represent the lease liabilities, plus any lease payments made at or before the commencement date, less any lease incentives received. If a lease does not provide an implicit rate, the Company uses its incremental secured borrowing rate, adjusted for the maturity date, based on information available at the commencement date in determining the present value of lease payments. Lease agreements with lease and non-lease components are accounted for as a single lease component. {13}------------------------------------------------ During the year, the Company entered into two new operating leases, amended one operating lease, and terminated two operating leases. On December 31, 2024, right-of-use assets and lease liabilities were \$15,883,921 and \$28,102,139, respectively, representing the present value of future lease payments with terms greater than 12 months primarily related to leases of office rent, software, and trading, communication and information systems equipment. | | Right of Use
Assets
Operating | Right of Use
Liabilities
Operating | |-------------------------------------|-------------------------------------|------------------------------------------| | Beginning balance December 31, 2023 | \$
16,145,629 | \$
28,683,908 | | New operating leases | 3,732,195 | 3,732,195 | | Amended operating leases | 1,757,468 | 1,757,468 | | Terminated operating leases | (1,099,442) | (1,199,900) | | Amortization | (4,651,929) | (4,871,532) | | Ending balance December 31, 2024 | \$
15,883,921 | \$
28,102,139 | Future minimum lease payments as of December 31, 2024 are as follows: | | IT | | | |------------------------------------|-----------------|------------------|------------------| | | Infrastructure | Office | | | Year ending December 31, 2024 | Leases | Leases | Total | | 2025 | \$
2,148,216 | \$
3,365,820 | \$
5,514,036 | | 2026 | 2,005,469 | 3,455,744 | 5,461,213 | | 2027 | 779,455 | 3,206,511 | 3,985,966 | | 2028 | - | 4,002,383 | 4,002,383 | | 2029 | - | 4,102,561 | 4,102,561 | | Thereafter | - | 13,131,394 | 13,131,394 | | Total lease payments | \$
4,933,140 | \$
31,264,413 | \$
36,197,553 | | Less: Interest | 353,489 | 7,741,925 | 8,095,414 | | Present value of lease liabilities | \$
4,579,651 | \$
23,522,488 | \$
28,102,139 | The weighted average remaining lease term and discount rate as of December 31, 2024 were as follows: | Weighted average remaining lease term (years) - Operating leases | 5.59 | |------------------------------------------------------------------|-------| | Weighted average discount rate - Operating leases | 6.72% | The terms of the Company's office space lease required a deposit of \$1,270,000 which the Company satisfied by providing the lessor a standby letter of credit from a financial institution in the amount of \$1,270,000. The letter of credit was issued on April 2, 2019 and amended on May 4, 2022 and is extended on an annual basis, unless the financial institution provides notifications indicating otherwise. As of May 4, 2022, the letter of credit requirement will remain in the amount of \$820,000 and reduce by \$164,000 annually for three years starting in 2030. As of December 31, 2024, the letter of credit is collateralized by \$820,000 of certificates of deposits with the financial institution. {14}------------------------------------------------ 8. Contingent Liabilities In the normal course of business, the Company may enter into contracts that contain a number of representations and warranties which may provide for general or specific indemnifications. The Company's exposure under these contracts are not currently known as any such exposure would be based on future claims which could be made against the Company. There have been no such claims since the inception of the Company. Management does not anticipate any such claims and expects any risk of loss to be remote. As such, the Company believes the amount for which it could be liable, if any, will not have a material adverse effect on the statement of financial condition. 9. Brokerage, Clearance, and Exchange Fees 10. Related Parties At December 31, 2024, the amounts due from / to counterparties in relation to brokerage, clearance, and exchange fees, recorded net by counterparty, were \$6,460,305 in other assets and \$90,377,638 in accounts payable and accrued expenses on the statement of financial condition. The Company maintains written Service Level Agreements and Software License Agreements with various affiliates. Agreements between the Company and affiliates may be amended, modified, supplemented, or restated in the normal course of business. The services primarily include the usage of trading infrastructure and usage of trading resources. In addition, the Company receives services for marketing and communication, and support services. Reimbursement under these agreements occurs on a monthly basis. In addition, the Company requests reimbursement from affiliates for global infrastructure costs the Company has incurred on behalf of these entities. 11. Net Capital Requirements | | | Receivables/(Payables)
from/to affiliates | | |-------------------|-------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | | IMC Americas, Inc. affiliates
IMC Trading BV | \$
(241,871,169)
(53,549,706) | | | | IMC BV and other affiliates | (89,545) | | | | Stockbridge, Inc. affiliates | (45,075,928)
\$
(340,586,348) | | | | | | | | | | | | | | | | | | | its required net capital of \$1,000,000. | The Company is subject to the net capital requirements of the Net Capital Rule. The Company computes its
net capital requirement under the alternative method provided for in Rule 15c3-1, which requires that the
Company maintain net capital equal to the greater of \$1,000,000 or 2% of aggregate debit items, as defined.
At December 31, 2024, the Company had net capital of \$556,915,320 which was \$555,915,320 in excess of | | | Subsequent Events | | | | The Company is subject to the net capital requirements of the Net Capital Rule. The Company computes its net capital requirement under the alternative method provided for in Rule 15c3-1, which requires that the Company maintain net capital equal to the greater of \$1,000,000 or 2% of aggregate debit items, as defined. At December 31, 2024, the Company had net capital of \$556,915,320 which was \$555,915,320 in excess of its required net capital of \$1,000,000. The Company has performed an evaluation of subsequent events through February 27, 2025, which is the date the statement of financial condition was available to be issued and noted no subsequent events requiring disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.