# MERCADIEN SECURITIES, LLC X-17A-5 (2024-02-23) — Broker-dealer annual report
- Company: MERCADIEN SECURITIES, LLC
- Form: X-17A-5
- Filed: 2024-02-23
- Period: 2023-12-31
- Accession: 0001180056-24-000004
- CIK: 1180056
- File #: 8-65505
- Type: Broker-dealer
- Material weakness: No
- Auditor: Michael Remus
- Auditor location: Hamilton, NJ
- Contact: Joyce Kalstein
- Phone: 6099154328
- Email: kkamen@mercadien.com
- Website: mercadien.com
- Signed by: Joyce Kalstein (Controller)
Original filing: https://www.sec.gov/Archives/edgar/data/1180056/000118005624000004/edgarfinalreport2.pdf
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#### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549**
OMB APPROVAL OMB Number: 3235-0123 Expires: Nov. 30, 2026 Estimated average burden hours per response: 12
> SEC FILE NUMBER 8-65505
# **ANNUAL REPORTS FORM X-17A-5 PART III**
**FACING PAGE**
**Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934**
FILING FOR THE PERIOD BEGINNING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ AND ENDING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 01/01/2023 12/31/2023
MM/DD/YY MM/DD/YY
**A. REGISTRANT IDENTIFICATION**
#### NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Mercadien Securities LLC
TYPE OF REGISTRANT (check all applicable boxes):
☐ Broker-dealer ☐ Security-based swap dealer ☐ Major security-based swap participant ☐ Check here if respondent is also an OTC derivatives dealer ■
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)
#### \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 3625 Quakerbridge Road
| | (No. and Street) | | |
|--------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|--------------------------------------------|
| Hamilton | NJ
_____________________________________________________________________________________ | | 08619 |
| (City) | (State) | | (Zip Code) |
| PERSON TO CONTACT WITH REGARD TO THIS FILING | | | |
| Ken Kamen | 609-689-2318
_____________________________________________________________________________________ | | kkamen@mercadien.com |
| (Name) | (Area Code – Telephone Number) | (Email Address) | |
| | B. ACCOUNTANT IDENTIFICATION | | |
| Michael T Remus CPA | _____________________________________________________________________________________
(Name – if individual, state last, first, and middle name) | | |
| PO Box 2555 | Hamilton Square
_____________________________________________________________________________________ | NJ | 08690 |
| (Address) | (City) | (State) | (Zip Code) |
| 02/23/2010 | _____________________________________________________________________________________ | 3598 | |
| (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) |
| | FOR OFFICIAL USE ONLY | | |
| | | | |
\* 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-5(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 OMB control number.**
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| Ken Kamen | swear (or affirm) that, to the best of my knowledge and belief, the | | |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|
| financial report pertaining to the firm of Mercadien Securities LLC | as of | | |
| 12/31 | 2 023 _ 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 proprietary interest in any account classified solely | | |
| as that of a customer. | | | |
| | Donu8lyned by: | | |
| Cheryl DeBronzo
NOTARY PUBLIC OF NEW JERSET | ken kamen
Signature: | | |
| Commission # 50143223 | 9ABA96161FA041D.
ritle: | | |
| Hy Commission Expires 11/20/2025 | President | | |
| | | | |
| Notary Public | | | |
| | | | |
| This filing** contains {check all applicable boxes): | | | |
| (a) Statement of financial condition. | | | |
| [ (b) Notes to consolidated statement of financial condition. | | | |
| | (c) Statement of income (loss) or, if there is other comprehensive in the period(s) presented, a statement of | | |
| comprehensive income (as defined in § 210.1-02 of Regulation S-X). | | | |
| = (d) Statement of cash flows, | | | |
| (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. | | | |
| L (f) Statement of changes in liabilities subordinated to claims of creditors. | | | |
| (g) Notes to consolidated financial statements. | | | |
| (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. | | | |
| [1] Computation of tangible net worth under 17 CFR 240.18a-2. | | | |
| () Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. | | | |
| | [ (k) Camputation for determination of security-based swap reserve regulrements pursuant to Exhibit B to 1.7 CFR 240.1503-3 or | | |
| Exhibit A to 17 CFR 240.18a-4, as applicable. | | | |
| [] { } Computation for Determination of PAB Requirements under Exhibit A to § 240,155-3.
@ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. | | | |
| [] (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. | | | |
| | @ {o} Recondilations, Including appropriate explanations, of the FOCUS Report with computation of net capital on tanglible net | | |
| | worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, 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. | | | |
| [ (p) Summary of financial data for subsidiated in the statement of financial condition. | | | |
| | @ (q) Dath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.18a-7, as applicable. | | |
| O (r) Compllance 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 240.18a-7, as applicable. | | | |
| [ (t) Independent public accountant's report based on an examination of the statement of financial condition. | | | |
| | (u) Independent public accountant's report based on an examination of the financial statements under 17 | | |
| CFR 240.17a-5, 17 CFR 240.18a-7, or 1.7 CFR 240.1.7a-12, as applicable. | | | |
| | [] {v) Independent public acountant's report based on an examination of certain statements in the compliance report under 17 | | |
| CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. | | | |
| | {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. | | | |
| as applicable. | Ll (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, | | |
| | | | |
| | [] (y) Report describing any material inadequacles found to have existed since the date of the previous audit, or
a statement that no material inadequacles exist, under 1.7 CFR 240.17a-12(k). | | |
| □ (z) Őther: | | | |
| | | | |
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**Mercadien Securities, LLC Financial Statements and Supplementary Information Pursuant to Rule 17a-5 of the Securities and Exchange Commission Year Ended December 31, 2023**
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#### **Mercadien Securities, LLC Index to the Financial Statements December 31, 2023**
| Report of Independent Registered Public Accounting Firm | 1 |
|-----------------------------------------------------------------------------------------------------------------------|-----|
| Financial Statements: | |
| Statement of Financial Condition
| 2 |
| Statement of Operations
| 3 |
| Statement of Changes in Members' Equity | 4 |
| Statement of Cash Flows | 5 |
| Notes to the Financial Statements | 6-7 |
| Supplemental Schedules: | |
| Computation of Net Capital Under Rule 15c3-1
of the Securities and Exchange Commission | 8 |
| Supplemental Reports: | |
| Report of Independent Registered Public Accounting Firm | 9 |
| Statement of Exemption from SEC
Rule 15c3-3 | 10 |
| Independent Accountants' Agreed-Upon Procedures
Report
on Schedule of Assessment and Payments (Form SIPC-7)
| 11 |
| Securities Investors Protection Corporation
General Assessment Reconciliation | 12 |
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# **MICHAEL T. REMUS** *Certified Public Accountant*
P.O. Box 2555 Hamilton Square, NJ 08690 **Tel:** 609-540-1751 **Fax:** 609-570-5526
### Report of Independent Registered Public Accounting Firm
To the Members of **Mercadien Securities, LLC**
## **Opinion on the Financial Statements**
I have audited the accompanying statement of financial condition of Mercadien Securities, LLC as of December 31, 2023, and the related statements of operations, changes in members' equity and cash flows for the year then ended, that are filed pursuant to Rule 17a-5 under the Securities Exchange Act of 1934 and the related notes [and schedules] (collectively referred to as the financial statements). In my opinion, the financial statements present fairly, in all material respects, the financial position of Mercadien Securities, LLC as of December 31, 2023 and its results of operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.
### **Basis for Opinion**
These financial statements are the responsibility of Mercadien Securities, LLC's management. My responsibility is to express an opinion on Mercadien Securities, LLC's financial statements based on my audit. I am a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and I am required to be independent with respect to Mercadien Securities, LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
I conducted my audit in accordance with the standards of the PCAOB. Those standards require that I 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. My audit included performing 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. My 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. I believe that my audit provides a reasonable basis for my opinion.
#### **Supplemental Information**
The Schedule I, Computation of Net Capital Under SEC Rule 15c3-1, Schedule II, Computation for Identification of Reserve Requirements Under SEC Rule 15c3-3 (*exemption*) and Schedule III, Information Relating to Possession or Control Requirements Under SEC Rule 15c3-3 (*exemption)* has been subjected to audit procedures performed in conjunction with the audit of Mercadien Securities, LLC's financial statements.
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The supplemental information is the responsibility of Mercadien Securities, LLC's management. My audit procedures included determining whether the supplemental 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 supplemental information. In forming my opinion on the supplemental information, I evaluated whether the supplemental information, including its form and content, is presented in conformity with 17 C.F.R. §240.17a-5. In my opinion, the Schedule I, Computation of Net Capital Under SEC Rule 15c3-1, Schedule II, Computation for Identification of Reserve Requirements Under SEC Rule 15c3-3 (*exemption*) and Schedule III, Information Relating to Possession or Control Requirements Under SEC Rule 15c3-3 (*exemption)* is fairly stated, in all material respects, in relation to the financial statements as a whole.
# *Michael T. Remus*
I have served as Mercadien Securities, LLC auditor since 2016.
Michael T. Remus, CPA Hamilton Square, New Jersey February 12, 2024
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# Statement of Financial Condition December 31, 2023
# **ASSETS**
| Cash | \$
85,761 |
|-----------------------------|---------------|
| Deposit with clearing agent | 50,000 |
| Prepaid expenses | 10,549 |
| Total Assets | \$
146,310 |
# **LIABILITIES and MEMBERS' EQUITY**
# Liabilities
| Accounts payable | \$
6,616 |
|-------------------------------------|---------------|
| Due to Clearing Agent | 5,230 |
| Due to Related Party | 4,125 |
| | |
| Total Liabilities | 15,971 |
| | |
| Members' Equity | 130,339 |
| | |
| Total Liabilities & Members' Equity | \$
146,310 |
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# Statement of Operations Year Ended December 31, 2023
#### Revenues
| Investment advisory fees | \$
2,348,164 |
|---------------------------|-----------------|
| Asset management fees | 12,817 |
| Interest income | 2,205 |
| Total Revenues | 2,363,186 |
| Operating Expenses | |
| Administrative charges | 24,464 |
| Money manager fees | 323,736 |
| Management fees | 1,911,000 |
| Customer clearance | 76,689 |
| Legal & Professional Fees | 6,575 |
| License | 12,137 |
| Other insurance | 648 |
| Postage | 352 |
| Professional membership | 1,000 |
| Publications | 4,635 |
| Miscellaneous | 200 |
| Other taxes | 550 |
| Total Operating Expenses | 2,361,986 |
| Net Income | \$
1,200 |
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#### Statement of Changes in Members' Equity
Year Ended December 31, 2023
| | Contributed
Capital | Retained
Earnings | Total | |
|-------------------------------------------------|------------------------|----------------------|---------|--|
| Balance, January 1, 2023 | \$ | \$ | \$ | |
| | 99,012 | 30,127 | 129,139 | |
| Net income for the Year Ended December 31, 2023 | | 1,200 | 1,200 | |
| Balance, December 31, 2023 | \$ | \$ | \$ | |
| | 99,012 | 31,327 | 130,339 | |
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Statement of Cash Flows Year Ended December 31, 2023
### **CASH FLOWS FROM OPERATING ACTIVITIES**
| Net Income | \$
1,200 |
|--------------------------------------------|--------------|
| Adjustments to Reconcile Net Income to Net | |
| Cash Provided by Operating Activities: | |
| (Increase) Decrease in Assets | |
| Prepaid expenses | (545) |
| Increase (Decrease) in Liabilities | |
| Accounts payable | 65 |
| Due to related Party | 4,125 |
| Due to Clearing Agent | 515 |
| Net cash provided by operating activities | 5,360 |
| Net increase in cash | 5,360 |
| Cash, Beginning of Year | 80,401 |
| Cash, End of Year | \$
85,761 |
| | |
| Supplemental Cash Flows Disclosures | |
| Cash paid for income taxes | \$
- |
| Cash paid for interest | \$
- |
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#### **Mercadien Securities, LLC Notes to the Financial Statements**
#### NATURE OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
#### Nature of the Business
Mercadien Securities, LLC (the Company) is a Registered Broker Dealer with the Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority, Inc. (FINRA). The Company is a brokerage firm that sells securities and provides investment banking and investment advisory services to corporations and individuals located in New Jersey.
#### Basis of Accounting
The Company employs the accrual method of accounting for financial reporting purposes.
#### Cash and Equivalents
For the purpose of the statement of cash flows, cash equivalents include time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.
#### Estimates and Uncertainties
The preparation of financial statements in conformity with generally accepted accounting principles 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results, as determined at a later date, could differ from those estimates.
#### Deposit with Clearing Agent
The Company, per the terms of its clearing agreement, is required to maintain a restricted security deposit with its clearing broker. Such deposit amounts are refundable to the Company upon termination of the agreement.
#### Income Taxes
The Company is taxed as a partnership for federal income tax purposes and, thus, no income tax expense has been recorded in the financial statements. Taxable income of the Company is passed through to the members and reported on their individual tax returns.
#### Investment Advisory Fees and Revenue Recognition
Revenue is recognized in accordance with FASB ASC Topic 606 as services are rendered and the contracts identified performance obligations have been satisfied. Revenue recognition guidance requires an entity to recognize the amount of revenue to which it is entitled for the transfer of promised goods or services to customers.
Investment advisory fees are calculated and charged quarterly in advance based on the market value of accounts on the last day of the previous quarter. Clients receive a pro rata refund of any unearned fees should they terminate their relationship with the Company prior to the end of the quarter.
Fees include investment advisory and financial planning services provided by our affiliated Registered Investment Advisor firm, Mercadien Asset Management (MAM), and as such the portion of total revenue attributable to MAM is distributed to them. Mercadien Securities LLC (MS) portion of the fee are for the processing and execution of MAM's market related activities and are generally satisfied once the date of such service is rendered.
MS has a selling agreement with fund companies for 529 plans and mutual funds. Commissions are recorded and considered earned on the trade date because it is deemed that is when the performance obligation has been met.
There were no unsatisfied performance obligations at December 31, 2023.
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#### NATURE OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
#### Fair Value of Financial Instruments
The fair values of cash, accounts payable, and accrued expenses and other short-term obligations approximate their carrying values because of the short maturity of these financial instruments. In accordance with FASB ASC 825-10-50, "Disclosure About Fair Value of Financial Instruments," rates available to the Company at the balance sheet date are used to estimate the fair value of existing balance sheet amounts.
#### Limitations
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial statement. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.
#### Subsequent Events Evaluation Date
The Company evaluated the events and transactions subsequent to its December 31, 2023 balance sheet date and, in accordance with FASB ASC 855-10-50, "Subsequent Events," determined there were no significant events to report through February 12, 2024, which is the date the financial statements were issued.
#### CONCENTRATIONS OF BUSINESS AND CREDIT RISK
At times throughout the year, the Company may maintain certain bank accounts in excess of FDIC insured limits.
#### RECEIVABLE FROM / DUE TO CLEARING AGENT
The Company clears all security transactions through its clearing agent, RBC Capital Markets Corporation. Amounts earned are reconciled monthly and paid in the subsequent month. As a result, the Company considers the amounts due from its clearing agent to be fully collectible, and accordingly, no allowance for doubtful accounts has been established.
#### NET CAPITAL REQUIREMENTS
The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-1 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 15 to 1. At December 31, 2023 the Company had net capital of \$119,790, which was \$69,790 in excess of its required net capital. The Company's net capital ratio was .1333 to 1.
#### RELATED PARTY TRANSACTIONS
Effective July 1, 2010, the Company entered into a revised Expense and Facilities Sharing Agreement with an affiliate of one of the Company's members. The agreement is effective for one year, with automatic annual renewal periods, cancelable by either party with proper notice of termination. Under the terms of the revised agreement, the Company leases office space in Hamilton from the affiliate on a month to month basis currently at a rate of \$1,079 per month. Rent expense under this agreement amounted to \$12,943 for the year ended December 31, 2023. No amounts were unpaid or outstanding under this arrangement as of December 31, 2023.
Terms of the revised Expense and Facilities Sharing Agreement also provide the Company with certain administrative support services from the affiliate on a month to month basis. Expenses under this arrangement amounted to \$11,521 for the year ended December 31, 2023. The Company owed \$4,125 under this arrangement as of December 31, 2023.
The Company collects asset management fees on behalf of Mercadien Asset Management ("MAM"). The Company then remits those fees to MAM. During the year ended December 31, 2023, the Company collected \$1,911,000 and remitted \$1,911,000 to MAM under this arrangement, which is reflected in the Statement of Operations. Only the amount of revenues earned by the Broker Dealer and retained by the Broker Dealer are reflected on the company's FOCUS filing.
As of December 31, 2023, the Company owed the related entity \$0.
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**SUPPLEMENTAL SCHEDULES**
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#### **Mercadien Securities, LLC Supplementary Information Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission December 31, 2023**
#### NET CAPITAL
| Total Members' Equity | \$
130,339 |
|----------------------------------------------------------|---------------|
| Deductions and/or Charges:
Non-Allowable Assets: | |
| Prepaid expenses | 10,549 |
| Total Non-Allowable Assets | 10,549 |
| Net Capital | \$
119,790 |
| AGGREGATE INDEBTEDNESS | \$
15,971 |
| COMPUTATION OF BASIC NET CAPITAL REQUIREMENTS | |
| Minimum net capital required | \$
1,065 |
| Minimum dollar net capital requirement | \$
50,000 |
| Excess Net Capital | \$
69,790 |
| Net Capital less 120% of minimum net capital requirement | \$
59,790 |
| Ratio of Aggregate Indebtedness to Net Capital | .1333 to 1 |
| | |
There are no material differences between the preceding Computation of Net Capital and the Company's corresponding unaudited Part II of Form X-17a-5 as of December 31, 2023.
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# SCHEDULE II COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS UNDER RULE 15c3-3 (EXEMPTION)
Year Ended December 31, 2023
Pursuant to Rule 17a-5(d) (4) of the audited computations of Net Capital pursuant to Rule 15c 3-1 and computation for Determination of Reserve requirements pursuant to Rule 15c 3-3 submitted by Mercadien Securities, LLC, in my opinion no material differences exist which would materially effect the reserve requirements pursuant to Rule 15c 3-3 or its claim for exemption.
### **Mercadien Securities, LLC**
# SCHEDULE III INFORMATION RELATING TO POSSESSION OR CONTROL REQUIREMENTS (EXEMPTION)
## PURSUANT TO RULE 15c 3-3 of the Securities and Exchange Commission
# As of December 31, 2023
# **"EXEMPT UNDER 15c3-3(k)(2)(ii)**
Pursuant to rule 15c 3-3 relating to possession or control requirements, Mercadien Securities, LLC has not engaged in the clearing or trading of any securities and did not hold customer funds or securities during the reporting period January 1, 2023 through December 31, 2023 and therefore is claiming exemption to this schedule pursuant to paragraph (k)(2)(ii) of SEC Rule 15c3-3.
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# **MICHAEL T. REMUS**
# *Certified Public Accountant*
P.O. Box 2555 Hamilton Square, NJ 08690 **Tel:** 609-540-1751 **Fax:** 609-570-5526
# REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
# To the Members of **Mercadien Securities, LLC**
I have reviewed management's statements, included in the accompanying Statement of Exemption from SEC Rule 15c3-3, in which (1) Mercadien Securities, LLC identified the following provisions of 17 C.F.R. §240. 15c3-3(k) under which Mercadien Securities, LLC claimed an exemption from 17 C.F.R. §240.15c3-3: under—k(2)(ii) and Footnote 74 of the SEC Release No. 34-70073, (the "exemption provisions") and (2) Mercadien Securities, LLC stated that Mercadien Securities, LLC met the identified exemption provisions throughout the most recent fiscal year without exception. The Company's management is responsible for compliance with the exemption provisions and its statements.
My review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about the Company's compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, I do not express such an opinion.
Based on my review, I am 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 forth in paragraph (k)(2)(ii) and Footnote 74 of the SEC Release No. 34-70073 of Rule 15c3-3 under the Securities Exchange Act of 1934.
*Michael T. Remus*
Michael T. Remus, CPA Hamilton Square, New Jersey February 12, 2024
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Mercadien Securities, LLC 3625 Quakerbridge Road Hamilton, New Jersey 08619 (609) 689-9700
### STATEMENT OF EXEMPTION FROM SEC RULE 15c3-3
Mercadien Securities, LLC (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. 5240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Statement was prepared as required by 17 C.F.R. 5240.17a-5(d)(l) and (4). To the best of its knowledge and belief, the Company states the following:
- (1) The Company claimed an exemption from 17 C.F.R. 5240.15c3-3 under the following provisions of 17 C.F.R. 5240.15c3-3(k)(2)(ii).
- (2) The Company met the identified exemption provisions in 17 C.F.R. §240.15c3-3(k)(2)(ii) throughout the most recent fiscal year without exception.
- (3) The Company is also filing this Exemption Report because the Company's other business activities contemplated by Footnote 74 of the SEC Release No. 34-70073 adopting amendments to 17 C.F.R. § 240.17a-5 are limited to effecting securities transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company. In addition, the Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers, and/or funds received and promptly transmitted for effecting transactions via subscriptions on a subscription way basis where the funds are payable to the issuer or its agent and not to the Company.
Mercadien Securities, LLC
I, Kenneth Kamen, swear (or affirm) that, to my best knowledge and belief, this Exemption Statement is true and correct.
\_\_\_\_\_\_\_\_\_\_
Kenneth A. Kamen Title:President/CCO
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# **MICHAEL T. REMUS** *Certified Public Accountant*
P.O. Box 2555 Hamilton Square, NJ 08690 **Tel:** 609-540-1751 **Fax:** 609-570-5526
Report of Independent Registered Public Accounting Firm on Applying Agreed-upon Procedures
To the Members of Mercadien Securities, LLC
In accordance with Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and with the SIPC Series 600 Rules, I have performed the procedures enumerated below, which were agreed to by Mercadien Securities, LLC and and the Securities Investor Protection Corporation (SIPC) with respect to the accompanying General Assessment Reconciliation (Form SIPC-7) of Mercadien Securities, LLC for the year ended December 31, 2023 solely to assist you and SIPC in evaluating Mercadien Securities, LLC's compliance with the applicable instructions of the General Assessment Reconciliation (Form SIPC-7). Mercadien Securities, LLC management is responsible for the firms compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the Public Company Accounting Oversight Board (United States). The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, I 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 I performed and my findings are as follows:
- 1. Compared listed assessment payments on SIPC-7 with respective cash disbursements journals, noting no differences;
- 2.. Compared the amounts reported on the audited Form X-17A-5 Part III for the year ended December 31, 2023, as applicable, with the total revenue reported in Form SIPC-7 for the year ended December 31, 2023, noting no differences;
- 3. Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences, and
- 4. Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences.
I was not engaged to, and did not conduct an examination, the objective of which would be the expression of an opinion on compliance. Accordingly, I do not express such an opinion. Had I performed additional procedures, other matters might have come to my attention that would have been reported to you.
This report is intended solely for the information and use of the specified parties listed above and is not intended to be and should not be used by anyone other than these specified parties.
*Michael T. Remus*
Michael T. Remus, CPA Hamilton Square, New Jersey February 12, 2024
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#### **Mercadien Securities, LLC Securities Investor Protection Corporation General Assessment Reconciliation For the Year ended December 31, 2023 (See Independent Accountants' Report on Applying Agreed-Upon Procedures)**
| SIPC Total Revenue
Deductions: | | \$2,363,185 |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----|-------------|
| Other revenue not related either directly or indirectly to the securities business.
Commissions, floor brokerage and clearance paid to other SIPC members in
connection with securities transactions. | | (1,911,000) |
| | | (76,688) |
| SIPC Net Operating
Revenues | | \$ 375,497 |
| General Assessment at .0015 | \$ | 563 |
| Less: | | |
| Payment made with SIPC-6 | | 284 |
| Payment made with SIPC -7 | \$ | 279 |
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.