# PROFESSIONAL TRADING SERVICES BROKERAGE, LLC X-17A-5 (2022-03-31) — Broker-dealer annual report
- Company: PROFESSIONAL TRADING SERVICES BROKERAGE, LLC
- Form: X-17A-5
- Filed: 2022-03-31
- Period: 2021-12-31
- Accession: 0001166547-22-000001
- CIK: 1166547
- File #: 8-65173
- Type: Broker-dealer
- Material weakness: No
- Auditor: Romeo & Chiaverelli LLC CPA's
- Auditor location: Bala Cynwyd, PA
- Contact: Jeremy J Schank
- Phone: 8568029400
- Email: compliance@ptsbrokerage.com
- Website: ptsbrokerage.com
- Signed by: Jeremy Schank (CFO, Co-CCO)
Original filing: https://www.sec.gov/Archives/edgar/data/1166547/000116654722000001/2021AuditReportPTSocr.pdf
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| UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 | | 0MB /\PPROVAL
0MB Number: 3235-0123
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| ANNUAL REPORTS | | SEC FILE NUMBER | | | | |
| | FORM X-]7'7:\'!5'" | | | | | |
| PART Ill | | | | | | |
| FACING PAG.E ~
Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | |
| AND ENDING 12/31/2021
FILING FOR THE PERIOD BEGINNING O 1/01/2021 | | | | | | |
| | MM/DD/YY | | MM/DD/YY | | | |
| | A. REGISTRANT IDENTIFICATION | | | | | |
| NAME OF FIRM: Professional Trading Services Brokerage, LLC aka PTS Brokerage, LLC | | | | | | |
| TYPE OF REGISTRANT (check all applicable boxes):
□ Major security-based swap participant
□ Security-based swap dealer
0 Broker-dealer
D Check here if respondent is also an OTC derivatives dealer | | | | | | |
| ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | |
| 125 Gaither Drive, Suite C | | | | | | |
| | (No. and Street) | | | | | |
| Mount Laurel | NJ | | 08054 | | | |
| (City) | (State) | | (Zip Code) | | | |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | |
| Jeremy J Schank | 856-802-9400 | | compliance@ptsbrokerage.com | | | |
| (Name) | (Arc.-i Code - Telephone Number) | | (Emili I Address) | | | |
| | B. ACCOUNTANT IDENTIFICATION | | | | | |
| INDEPENDENT PUBLIC ACCOUNTANT whose reports are conta ined in this filing*
Romeo & Chiaverelli, LLC CPA's | | | | | | |
| | (Name - if individual, state last, first, and middle name) | | | | | |
| One Bala Ave, Suite 234 | Bala Cynwyd | | 19004
PA | | | |
| (Address)
09/01/2009 | (City) | 3721 | (Zip Code)
(State) | | | |
| l"
of Reg;rn,I, Jeremy J Schank | | | |
|---|------------------------------------------------------------------------------------------------------------------------------------|--|--|--|
| | financial report pertaining to the firm of Professional Trading Services Brokerage, LLC aka PTS Brokerage, LLC
, as of | | | |
| | 1 _, is true and correct. I further swear (or affirm) that neit
12/31
, 2_2_
her the company nor any | | | |
| | partner, officer, direc
s may be, has any proprietary interest in any account classified solely | | | |
| | as that of a customer.
JENNIFER M LAMBING | | | |
| | Notary Public - State of New Jersey | | | |
| | My Commission Expires Jan 17, 2025 | | | |
| | | | | |
| | Title: | | | |
| | CFO | | | |
| | | | | |
| | | | | |
| | | | | |
| | This fil ing** contains (check all applicable boxes): | | | |
| | ii (a) Statement of financial condition. | | | |
| D | (b) Notes to consolidated statement of financial condition. | | | |
| | ii (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of | | | |
| | comprehensive income (a, defined in § 210.1-02 of Regulation S-X).
ii (d) Statement of cash flows. | | | |
| | ii (e) Statement of changes in stockholders' or partners' or sole proprietor's eq | | | |
| | uity. | | | |
| D | (f) Statement of changes in liabilities subordinated to claims of creditors.
ii (g) Notes to consolidated financial statements. | | | |
| | | | | |
| | ii (h) Comput
ation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-1, as applicable. | | | |
| | □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. | | | |
| D | (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.1Sc3-3. | | | |
| D | (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.1Sc3-3 or | | | |
| | Exhibit A to 17 CFR 240.18a-4, as applicable . | | | |
- .. □ (I) Computation for Determination of PAB Requirements under Exhibit A to § 240.1Sc3-3.
- / D (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
- D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable.
- U (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-l, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3 3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist.
- C: (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.
- **ii** (q) Oath or affirm ation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable.
- C: (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- ~ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- D (t) Independent public accountant's report based on an examination of the statement of financial condition.
- **ii** (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
- D (v) Independent public accountant's report based on an examination of certain statements in t he compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- **ii** (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
- D (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-l e or 17 CFR 240. l 7a-12, as app licable.
- D (y) Report describing any material inadequacies found to exist or found to have existed si nce the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). ~(z) Other:------------------- - ------------------------
-
\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17o-5{e){3) or 17 CFR 240.18o-7(d)(2), as applicable.
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#### FINANCIAL STATEMENTS
# PTS BROKERAGE, LLC
#### DECEMBER 31, 2021
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#### **PTS BROKERAGE, LLC**
#### **DECEMBER 31, 2021**
#### **TABLE OF CONTENTS**
| Report of Independent Registered Public Accounting Firm | | 1-2 |
|-------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|-----------|
| | Financial Statements | |
| | Statement of Financial Condition | 3 |
| | Statement or Income | 4 |
| | Statement of Changes in Members' Equity | 5 |
| | Statement of Cash Flows | 6 |
| | Notes to financial Statement | 7-10 |
| | Supplementary In
formation | |
| | Schedule I
Computation of Net Capital Pursuant to Rule 15c3-1 of
the Securities and Exchange Commission | 11 |
| | Schedule II
1::-:ernpti ,,e Provisions Under SLC Rule I 5c3-3 | 12 |
| Rcrort 01· Indcprndcnt Registered Public /\ccounting f
irm
b:cmption Report Rcviev, | | 13 |
| | Exemption Report | 14 |
| | Independent /\ccountant' s Report on /\greed-Upon Procedures
Report on Schedule of Assessment and Payments (Form SIPC-7) | 15-
16 |
| | Schedule of /\sscssrnent and Payments
(General /\sscssment Reconciliation Form SIPC-7) | 17 |
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#### **ROMEO & CHIAVERELLI LLC CERTIFIED PUBLIC ACCOUNTANTS ONE BALA AVENUE SUITE 234 BALA CYNWYD, PA 19004**
#### **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**
To the Member of: PTS Brokerage, LLC
#### Opinion on the Financial Statements
We have audited the accompanying statement of financial condition of PTS Brokerage, LLC(the "Company"), as of December 31, 2021, and the related statements of operations, changes in members' equity and cash flows for the year then ended, and the related notes and supplementary information (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021, and the results of its operations and its cash flows for the year ended December 31 , 2021, in conformity with accounting principles generally accepted in the United States of America.
#### **Basis for Opinion**
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements 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 jndependent with respect 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 statements are free of material misstatement, whether due to error or fraud. Our audit included perform ing procedures to assess the risks of material misstatement of the financial statements, 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 statements. 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 statements. We bel ieve that our audit provides a reasonable basis for our opinion.
#### **Auditor's Report on Supplementary Information**
The supplementary information, the Computation of Net Capital under Rule 15c3-1 of the Securities and Exchange Commission and the Computation for Determination of Reserve Requirements and Information Relating to Possession or Control Requirements Under Rule 15c3-3 of the Securities and Exchange Commission OR contained in schedules I and II, has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The supplementary information is the responsibility of the Company's management. Our audit procedures included determining whether the supplementary information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplementary information. In forming our opinion on the supplementary information, vve evaluated whether the supplementary information. including its form and content, is
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presented in conformity with 17 C.F.R. § 240.1 ?a-5. In our opinion. the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole.
We have served as the Company's auditor since 2009.
*d ,/l /,/* L~-- --:-✓. *;7 r* / ---· / *.·/2* (\_ *{.* ( *vi..·-<- t.:,< I*
March 11, 2022 Bala Cynwyd, PA 19004
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#### **PTS BROKERAGE, LLC STATEMENT OF FINANCIAL CONDITION**
#### **DECEMBER 31, 2021**
| ASSETS | |
|-------------------------|---------------|
| Cash | \$ 43,939 |
| Receivables | 206,655 |
| Fixed Assets. Net | 8,260 |
| Right of Use Asset, Net | 40,249 |
| Other Assets | I 0,958 |
| TOT AL ASSETS | \$3
10,061 |
#### **LIABILITIES & MEMBERS' EQUITY**
| LIABILITIES | |
|--------------------------------------|-------------|
| Accounts Payable & Accrued Expenses | \$ I 08,265 |
| Lease Liability | 40 471 |
| TOT AL LIABILITIES | \$ 148,736 |
| | |
| MEMBERS' EQUITY | \$ 161.325 |
| TOTAL LIABILITIES & MF.MBERS' EQUITY | \$ 310,061 |
The accompanying notes arc an integral part of' these fin ancial statements
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#### **PTS BROKERAGE, LLC STATEMENT OF INCOME**
#### **For the Vea,- Ended DECEMBER 31, 2021**
| REVENUE | |
|-------------------------------|-----------------|
| Commissions | \$580,209 |
| Investment Advisory Fees | 638,755 |
| Mutual 1-'und Fees | 117,270 |
| TOTAL REVENUE | 1,336,234 |
| OPERATING EXPENSES | |
| Lmployee Compensation | 731
,7
13 |
| Occupancy and Equipment | 20,915 |
| Regulatory Fees | 16,065 |
| Technology and Communications | 25,070 |
| Other Expenses | I 9,276 |
| TOTAL OPERATING EXPENSE | 813,039 |
| NET INCOME | \$523,195 |
The accompanying not es arc an integral part of these linancial stiJtements
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#### **PTS BROKERAGE, LLC STATEMENT OF CHANGES IN MEMBERS' EQUITY**
#### **For the Year Ended DECEMBER 31, 2021**
| Members' Equity, beginning of year | \$107,053 |
|------------------------------------|-------------------|
| Net Income | 523,195 |
| Property Contributions | 7,225 |
| Less: Capital Distributions | (476,148) |
| Members' Equity, end of year | \$
16
1,325 |
The accompany ing notes arc an integral part of these financial statements
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#### **PTS BROKERAGE, LLC STATEMENT OF CASH FLOWS**
#### **For the Year Ended DECEMBER 31, 2021**
| CASH FLOWS FROM OPERA TING ACTIVITES | |
|------------------------------------------------------------------------------------------------------------------|--------------------------------------|
| Net Income | \$523,195 |
| Adjustments to reconcile Net Income | |
| to net cash provided by operations: | |
| Depreciation | 1,42
1 |
| Decreases in Operating Assets and Other Liabilities | |
| Other Assets | (9,224) |
| Receivables | (81,710) |
| Accounts Paya
ble & Accrued Expenses | 36.42
1 |
| Net cash provided by Operating Activities | 470,103 |
| FINANCING ACTIVITES
Property Contributions
Capital Distributions
Net cash used for Financing Activities | 7.225
(476,148)
(468,923) |
| Net cash increase for the year | 1.180 |
| Cash at beginning of the year | 42.759 |
| Cash at end of the yea,· | .I"{)"{)
I['
.p __ :t_.). .) - |
The accompanying notes arc an integral part of these financial statements
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# **PTS BROKERAGE, LLC NOTES TO FINANCIAL STATEMENTS**
# **DECEMBER 31, 2021**
# **NOTE A** - **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
The following is a summary of the significant accounting policies applied by management in the preparation of the financial statements.
# *Organization*
PTS Brokerage. LLC (Company) was organized under the Laws of the State of New Jersey in 200 I and has been registered as a broker-dealer with the SEC and has been a member of the Financial Industry Regulatory Authority (FINRA) since August 2002. The Company sells mutual funds, life insurance products including variable annuities, provides investment advisory services and provides financial planning services to public customers. The Company is registered in fourteen (14) states to conduct securities transactions. Federal. state. and local income tax returns for years prior to 2018 are no longer subject to examination by tax authorities.
# *Estimote.1·*
The preparation of financial statements in conformity with accounting principles generally accepted in the United of States or America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure 01· contingent assets and li abi lities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
# />roper!)'. Def)reciu1io11 u11cl. Jmor1i-utio11
Property is stated at cost. Lxpenditures ltlr property ,vhich substantially increase useful li ves arc capitalized. Depreciation and an 1 ortization is provided for on a straight-line ha s is over the useful lives or the respective assets ranging from 3 to 7 years or the term or the lease. When assets are retired or otherwise disposed o r, their costs and related accumulated depreciation or amortization are removed from the accounts.
# *Revenue recognition*
Revenue is recognized from the sal e of mutual funds as earned. Broker-dealers acting as mutua l fund distributors may earn I 2b- l fees paid by the fund to the broker-dealer to cover distribution expenses which encompass marketing and selling of mutual fund shares. Revenue 1·ro111 the placement or lik insurance products is recognized upon notification or pol icy acceptance and renewal. Rc,enue from investment advisory services is recogniz.ed as earned. Rtvenue from financial planning services is recogni zed as billed.
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## **PTS BROKER.AGE, LLC NOTES TO FINANCIAL STATEMENTS**
#### **DECEMBER 31, 2021**
#### **NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
#### **Income taxes**
The Company, a limited li ability company, has elected to be taxed for federal and state purposes as a partnership. As a result, the Company is not a taxpaying entity for federal or state income tax purposes and, accordingly, no income tax expense or tax benefit has been recorded in these financial statements. Income or losses from the Company are refl ected on the Members' income tax returns.
# **NOTE B-NET CAPITAL REQUIREMENT**
The Company is subject to the Securities and Exchange Commission Uniform Net Capital Ruic (Rule 15c3-I ). which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed n ratio of 15 to **1.** At December 31, 2021 the ratio was .811 to 1. The Company complied with the exemptive provisions of Rule l 5c3-3 under subparagraph (k)( I). /\II customer transactions are limited to the sale and redemption of redeemable securiti es of registered investment companies, the sale or life insurance products including variable annuities, and providing investment advisory services. At December 31. 202 1. the Company had net capital, as defined, of \$ 133,433, which was \$ 126.2 15 in excess of its required minimum net capital of\$7.218.
#### **NOTED - SUBSEQUENT EVENTS**
Events of the company subsequent to December 31. 2021 have been evaluated through March 11. *2022* \\ hich is the cbtc the linancial statements \\Crc avaibblc to be issued. fo r the purpose or identifyi ng events requiring recording or disclosure in the fi nanc ial statements for the year cmkd December 3 1. 202 1. In December 2020. the firm submitted a Continuing Membership /\pplication for the ownership change effective January I. 202 l.
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#### **PTS BROKERAG E, LLC NOTES TO FINANCIAL STATEMENTS**
#### **DECEMBER 31, 2021**
#### **NOTE E** - **RECENT ACCOUNTING PRONONUNCEMENTS**
#### **Accounting Pronouncements** - **ASC 606 Revenue Recognition**
In May 2014, the Financial Accounting Standards Board ("F ASB") issued Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606"). The accounting standard, along with its related amendments, replaces the current rules-based GAAP governing revenue recognition with a principles-based approach. The Company adopted the standard in 2018 using the modifi ed retrospecti ve approach, which requires the firm to apply the new revenue standard to (i) all new revenue contracts entered into alter the adoption date and (ii) all existing revenue contracts as of the adoption date through a cumulative adjustment to equity. In accordance with this approach. revenues for periods prior to .January I. 202 1 will not be revised.
The core principle in the new guidance is that a company should recognize revenue in a manner that depicts the transfer of goods or services to customers in amounts that refl ect the consideration the company expects to receive for those goods or services. ln order to apply this core princi ple. the Company will apply the foll owing five steps in determining the amount of revenues to recognize: (i) identify the contract; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the pe rformance obligations in the contract; and (v) recognize 1-c\c nue when ( or as) the perfo rmance obligation is satisfi ed. Each or these steps involves rnanage rnent" s judgment and an analysis o f"the materi al terms and conditions of' the contract. Although total revenues may not be materiall y impacted by the new guidance, management notes changes to the disclosures based on the additional requirements prescribed by ASC 606. These new disclosures inc lude information regarding the \_judgrncnts used in crnluating when and hO\v re \'Cn ue is recogni zed and disclosures related to contract assets and li abi lities.
#### **Accounting Pronouncements** - **ASC 842 Leases**
In February 20 16. the l'inancial Accounting Standards Goa rd (""FASlr") published Accounting Standards lJ pdate No. 20 16-02. Lenses ("'/\SC 842""). The new accounting standard is applied to operating leases with a ter111 greater than 12 months and requires lessee·s to recognize (i) their obligations to make lease payments as a liability (the "'lease liability .. ). initially measured at the present value o f the lease payments. and (ii) their ability to use the leased property as a corresponding asset (a "'right-of-use asset"'). The updated standard is e ffecti ve for fiscal years beginning after December 15, 2020 and the Co111pany adopted the new standard on January I. 202 1 using the modified retrospecti ve approach. vvhi ch requires the Firm to (i) apply the new standard to leases in place as of the adoption date. (ii) record a cumulati ve-effec t adjustment to retained earnings as of the l'irst day oi"thc adoption yea r. and (iii) fo llow the new rules for all leases entered or modi li ed going l'orward. In accordance \•Vith this approach. assets and liabilities !'or periods prior to January I. 202 1 will not be revised.
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## **PTS BROKERAGE, LLC NOTES TO FINANCIAL STATEMENTS**
#### **DECEMBER 31, 2021**
#### **Accounting Pronouncements** - **ASC 842 Leases (Continued)**
The core principle in the ne\\ guidance is that a company should provide information necessary to understand its leasing activities including a comprehensive understanding of the costs of property essential to a company's operations and how those costs are funded including the recognition of assets and liabilities associated with leases.
Although the economic or legal characteristics of these leases are not altered, the impact on the presentation of assets and liabilities on financial statements may be material. J\lso, as a broker-dealer registered with the Securities and Exchange Commission ("SEC") and Financial Industry Regulatory Authority ("FINRA"), the Company is subject to SEC Rule I 5C3-l , the Net Capital rule, under which the lease asset would be recorded as a non-allo\vable asset and the associated liability would be recorded as aggregate indebtedness, both of which could have a materially negative effect on Net Capital computed under SEC Rule l 5c3-l. On May 31 , 2016, the Securities Industry and Financial Markets Association ('·SlfMA'.) requested re lief from the SEC from the net capital impact of the lease capitalization required under ASC 842. On November 8.2016. the SEC issued a " no action" letter permitting broker-dealers to add back to Net Capital the operating lease asset to the extent of the associated operating lease liability. If the value of the operating lease liability exceeds the value o f the associated operati ng lease asset. the amount by which the liability's va lue exceeds the associated lease asset must be deducted for net capital purposes.
The new guidance provided by /\SC 842 may not materially impact the Company·s presentation of assets and liabilities. and the relief provided by the SEC "no action'· letter will substantially negate the effect of'its application on the Company's Net Cn pit al: hcmcver 111,m,1gemcnt notes changes to the d isclosures based on the addit ional requirements prescribed by /\SC 842. These new disc losures include information regarding the judgments us,xl in determining the present value ol' lease payments and the correspondi ng va lue or the right-or-use asset.
#### **NOTE F - COMMITMENTS AND CONTINGENCIES**
The Company can be subject to regulatory inquires that result in the assessment of lines or othe r sanctions. Management has determined that as of the date of the financial statement. no assessment of fines or other sanctions are imposed.
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*SUPPLEMENTARY INFORMATION*
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#### **PTS BROKERAGE, LLC SCHEDULE I COMPUTATION OF NET CAPITAL PURSUANT TO RULE 15c3-1 OF THE SECURITIES AND EXCHANGE COMMISSION**
#### **DECEMBER 31, 2021**
| Total members' equity from | |
|----------------------------------------------------------|----------------------|
| Statement of financial condition | \$161.325 |
| Non-Allowable Assets: | |
| Receivables | 8,674 |
| Other assets
Total Non-Allowable Assets | 19,2
18
27,892 |
| | |
| Net Capital | \$__133 433 |
| COMPUTATION or BASIC NET CAPITAL REQUIREMENT | |
| Minimum net capital required per l 5e3-l (a)(2) | 7,218
\$ |
| Minimum Dollar Net Capital Requirement | \$ 5,000 |
| Minimum Net Capital Requirement | \$ 7.2
18 |
| Excess Net Capital at 1.500% | \$ 126,215. |
| Excess Net Capital at I .000% | \$ 1_22,6Q_l |
| Aggregate Indebtedness l'ro111 Statement of Financial | |
| Condition. net of A-
I c liabilities | \$ 108.265- |
| | |
| Percentage of Al to NC | 81.14 % |
| Debt-Equity Ratio in accordance \,vi th I 5e3-
l ( d) | 0 % |
| | |
**Note:** There are no material differences between the preceding computation and the Company's corresponding unaudited part **11 /\** or Form X- 17 /\-5 as of December 3 1. 202 1
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#### **SCHF:DULE** II
## **PTS BROKERAGE, LLC EXEMPTIYE PROVISIONS UNDER 15c3-3 OF THE SECURITIES AND EXCHANGE COMMlSSlON**
#### **DECEMBER 31, 2021**
The Company is exempt from Rule 15c3-3 of the Securities and Exchange Commission under paragraph (k)( 1) of that Rule.
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#### **ROMEO** & **CHlAVERELLI LLC ONE BALA AVE SUITE 234 BALA CYNWYD, PA 19004**
#### **Report of Independent Registered Public Accounting Firm Exemption Rcpo,·t Review**
To the Member of: PTS Brokerage, LLC
We have reviewed management's statements, included in the accompanying Exemption Report, on which identified the following provisions of 17 C.F.R. ~ l 5c3-3(k) under which PTS Brokerage, LLC claimed an exemption from 17 C.F.R. ~240. 15c3-3:(l). SEC Rule I 5c3-3(k)( 1) and PTS Brokerage, LLC stated that PTS Brokerage, LLC met the identified exemption provisions throughout the most recent fiscal year without exception. PTS Brokerage LLC's management is responsible for compliance with the exemption provisions and its statements.
Our review was conducted in accordance with the standards of the Public Company Accounting Oversight 13oard (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about PTS Brokerage, LLC's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objecti ve of which is the expression of' an opinion on management's stu tements. J\ccordingly, wc do not express such an opinion.
l3ased on our review, we arc not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set fi.Jrth in paragraph (k)(l) of Ruic I 5c3-3 under the Securities Exchange A,e~of l 934,.<'
/~~ // G --7 (\ . / &/ ,,/,i,'. *'A,(---'-* •· -- '+-· l · -7 -;,+.;,<...1 *!..* L.. *ct \_ 1* /) *6"* A ' , ' *~/,W* ~ *~ -* . *-c:.~/* (\_ / ,7/ .,/
Romeo & Chiaverelli, LLC Bala Cynwyd, PA
March l I, 2022
{18}------------------------------------------------
# *PTS Brokerage, LLC* I
Profc·,,illnal 7i·,uling .x·n ·icc, *Brok erngc, LLC* 1-:a,t C,uc Bu,1m·,, C:c11 1n I *2'i* c\_; airhcr Dri,·c, Suite C .\fount l.aurcl, N\_I 080'i-l \\"\\"\\".pt , I nokc rage.cc >Ill
() tlicc: (8'i6) 81 )2-'J-ll II I 1:,1x: (8'i(,) 8112-'l~~-I E-mail: pts(i'l\_)pt sb rnkcragc.com
# EXEMPTION REPORT
We confirm. to the best of our knowl edge and belief. that:
- I. PTS Brokerage, LLC claimed an exemption from SEC Rule 15c3-3 under the provisions in paragraph of (k)( **1)** throughout the calendar year January 1, 2021 to December 31, 2021.
- 2. PTS Brokerage. LI.C met thi: identified exemption provisions in SEC Ruic J 5c3-3(k)( I) throughout the calendar year January I, 202 1 to December 3 1, 2021 without exception.
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3/ I 1/1 I Dale
LC ) 25 Ga ither Drive. Suite C Mount Laurel. N.I 08054 (856) 802-9400
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#### **ROMEO** & **CIIIAVERELLl LLC ONE BALA A VENUE SUITE 234 BALA CYNWYD, PA 19004**
#### **Independent Accountant's Agreed-Upon Procedures Report On Schedule Of Assessment And Payments (Form SIPC-7)**
To The Member of: PTS Brokerage, LLC
We have performed the procedures included in Rule l 7a-5(c)(4) under the Securities Exchange Act of 1934 and in the Secmities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below and were agreed to by PTS Brokerage, LLC and the SIPC, solely to assist you and SIPC in evaluating PTS Brokerage, LLC's compliance with the applicable instructions of the General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2021. PTS Brokerage, LLC's management is responsible for its Form SIPC-7 and for its compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with standards established by the Public Company Accounting Oversight Board (United States) and in conformance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures we performed and our findings are as follows:
- 1. Compared the listed assessment payments in Form SJPC-7 with respective cash disbursement records entries, noting no cl i ffcrcnccs;
- 2. Compared the Total Revenue amounts reported on the AJmual J\uclitcd FormX-17 A-5 for the year ended December 3 J, 2021, with the Total Revenue amount reported in Form SPTC-7 for the year ended Deccrnber 31, 2021 , iwh ng no differences;
- 3. Compared any adjustments reported in Form SlPC-7 with supporting schedules and working papers, noting no differences;
- 4. Recalculated the arithmetical accuracy of the calculations re flee led in Form STPC-7 and in the related schedules and working papers supporting the adjustments, noting no di fforences; and
- 5. Compared the amount of any overpayment applied to the c uITent assessment with the Form SIPC-7 on which it was originally computed, noting no differences.
We were not engaged to, and did not conduct ,m examination or review, the objective of which would be the ex pression of an opinion or conclusion, respectively, on PTS
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Brokerage, LLC's compliance with the applicable instructions of Fonn S IPC-7 for the year ended December 3 I, 2021. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures; other matters might have come to our attention that would have been reported to you.
This report is intended solely for the information and use of PTS Brokerage, LLC and the SIPC and is not intended to he and should not be used by anyone other than these speci ficd parties.
*/-1 LJ;L/* ~~ t*c\_ (~ *c /?* 4 ~
Romeo & Chiaverclli, LLC Bala Cynwyd, PA
March 11, 2022
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## **PTS BROKERAGE, LLC SCHEDULE OF ASSESMENT AND PAYMENTS TO THE SECURITIES INVESTOR PROTECTION CORPORATION**
# **For the Year Ended DECEMBER 31, 2021**
| Period Covered | Date Paid | Amount |
|-----------------------------------------------------------------------------------|---------------|---------|
| General Assessment Reconciliation for the year
ended December 3
1, 202
1 | | \$985 |
| Payment Schedule | | |
| SIPC-6 | 7/27/2021 | 421 |
| SlPC-7 | 2/0
1/202? | 564 |
| Amount Due | | \$
0 |
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.