# PRIME DEALER SERVICES CORP. X-17A-5 (2026-02-25) — Broker-dealer annual report - Company: PRIME DEALER SERVICES CORP. - Form: X-17A-5 - Filed: 2026-02-25 - Accession: 0001193125-26-072439 - CIK: 920300 - File #: 8-47025 - Website: deloitte.com Original filing: https://www.sec.gov/Archives/edgar/data/920300/000119312526072439/d40717dfull1.pdf --- {0}------------------------------------------------ # PRIME DEALER SERVICES CORP. (SEC I.D. No. 8-47025) ## STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2025 AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM \*\*\*\*\*\*\*\*\*\* Filed pursuant to 17a-5(e)(3) under the Securities Exchange Act of 1934 as a Public Document. {1}------------------------------------------------ ## PRIME DEALER SERVICES CORP. | Table of Contents | | | | | | | |---------------------------------------------------------|------------------------------------------------|----|--|--|--|--| | Report of Independent Registered Public Accounting Firm | | | | | | | | Statement of Financial Condition | | | | | | | | Notes to Statement of Financial Condition | | | | | | | | | Note 1. Introduction and Basis of Presentation | 3 | | | | | | | Note 2. Significant Accounting Policies | 3 | | | | | | Note 3. | Related Party Transactions | 5 | | | | | | Note 4. | Fair Values | 5 | | | | | | Note 5. | Collateralized Transactions | 6 | | | | | | Note 6. | Contingencies | 7 | | | | | | Note 7. | Risk Management | 8 | | | | | | Note 8. | Income Taxes | 10 | | | | | | Note 9. | Regulatory Requirements | 11 | | | | | {2}------------------------------------------------ Deloitte & Touche LLP 30 Rockefeller Plaza New York, NY 10112-0015 USA Tel: 1 212 436 2000 Fax: 1 212 436 5000 www.deloitte.com ## **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Board of Directors and Sole Stockholder of Prime Dealer Services Corp. ### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Prime Dealer Services Corp. (the "Company") as of December 31, 2025, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. ## **Basis for Opinion** The financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this financial statement based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with 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 statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit of the financial statement provides a reasonable basis for our opinion. February 25, 2026 We have served as the Company's auditor since 1997. {3}------------------------------------------------ ## PRIME DEALER SERVICES CORP. STATEMENT OF FINANCIAL CONDITION As of December 31, 2025 (In thousands of dollars, except share data) | Assets | | | |--------------------------------------------------------------------------------------|----|------------| | Cash | ಿ | 18.797 | | Securities purchased under agreements to resell | | 41,334 | | Securities borrowed | | 12,065,001 | | Securities received as collateral, at fair value (\$7,312,034 pledged as collateral) | | 7,312,034 | | Rebates and fees receivable and other assets | | 485.078 | | Total assets | ಕೆ | 19,922,244 | | | | | | Liabilities | | | | Securities loaned | ങ | 12,065,001 | | Obligation to return securities received as collateral, at fair value | | 7,312,034 | | Rebates and fees pavable and other liabilities | | 485.459 | \$ ### Total liabilities # Contingent liabilities (see Note 6) ## Stockholder's equity | Common stock (\$1 par value, 1,000 shares authorized, issued and outstanding) | | | | | |-------------------------------------------------------------------------------|------------|--|--|--| | Paid-in capital | 24,999 | | | | | Retained earnings | 34.750 | | | | | Total stockholder's equity | 59.750 | | | | | Total liabilities and stockholder's equity | 19,922,244 | | | | {4}------------------------------------------------ #### **! \$! 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companies: | | | | | | | Reverse repurchase agreements | ಕ್ಕಾ | 41,334 | | | | | Securities borrowed | | 10,651,321 | | | | | Rebates and fees receivable and other assets | | 277,943 | | | | | Liabilities and payables to affiliated companies: | | | | | | | Securities loaned | ಕ್ಕಾ | 11,148,928 | | | | | Rebates and fees payable | | 315.158 | | | | ## 4. Fair Values #### Fair Value Measurement #### Assets and Liabilities Measured at Fair Value | | | At December 31, 2025 | | | | | | | |--------------------------------------|-------|--------------------------|--|---------|--|---------|--|-----------| | | | Level 1 | | Level 2 | | Level 3 | | Total | | Assets at fair value | | | | | | | | | | Securities received
as collateral | સ્ત્ર | 7,307,838 \$ \$ 4,177 \$ | | | | 19 \$ | | 7,312,034 | | | | | | | | | | | | Liabilities at fair value | | | | | | | | | | Santa Market Car Rang Vallary | | | | | | | | | | |---------------------------------------------|--|--------------------------|--|--|--|--|--|-----------------|--| | Obligation to return
securities received | | | | | | | | | | | as collateral | | 7.307.838 \$ \$ 4.177 \$ | | | | | | 19 \$ 7.312.034 | | | | | | | | | | | | | Securities received as collateral and Obligation to return securities received as collateral are generally valued based on unadjusted quoted prices in active markets and are categorized in Level 1 of the fair value hierarchy. Level 2 categorization would generally be assigned when valued based on quoted prices in inactive markets. When significant inputs are unobservable, a Level 3 categorization is assigned. {7}------------------------------------------------ Significant Unobservable Inputs Used in Level 3 Fair Value Measurements #### Valuation Techniques and Unobservable Inputs | | Balance / Range
(Average1) | | | |------------------------------------------------------------|-------------------------------|----------------------|--| | | | At December 31, 2025 | | | Assets at fair value | | | | | Securities received as collateral: | ಕ್ಕಾ | 19 | | | Comparable pricing: | | | | | Equity price | | 100% | | | Liabilities at fair value | | | | | Obligation to return securities received
as collateral: | ಿ | 19 | | | Comparable pricing: | | | | | Equity price | | 100% | | | | | | | Points - Percentage of par 1. A single amount is disclosed for range and average when there is no significant difference between the minimum, maximum, and average. Amounts represent weighted averages except where simple averages and the median of the inputs are more relevant. The previous table provides information on the valuation techniques, significant unobservable inputs, and the ranges and averages for each major category of assets and liabilities measured at fair value on a recurring basis with a significant Level 3 balance. The level of aggregation and breadth of products cause the range of inputs to be wide and not evenly distributed across the inventory of financial instruments. Further, the range of unobservable inputs may differ across firms in the financial services industry because of diversity in the types of products included in each firm's inventory. Generally, there are no predictable relationships between multiple significant unobservable inputs attributable to a given valuation technique. During 2025, there were no significant revisions made to the descriptions of the Company's significant unobservable inputs. An increase (decrease) to the following significant unobservable inputs would generally result in a higher (lower) fair value. Comparable equity price: A price derived from equity raises, share buybacks and external bid levels, etc. A discount or premium may be included in the fair value estimate. #### Financial Instruments Not Measured at Fair Value The table below presents the carrying value, fair value and fair value hierarchy category of certain financial instruments that are not measured at fair value in the statement of financial condition. | | At December 31, 2025 | | | | | | | | | | |------------------------------------------------------------|----------------------|--------------------|-------------|---------|------------|---------|----|-------|-----|----------------------------------| | | | | Fair Value | | | | | | | | | | Value | Carrying | Level 1 | Level 2 | | Level 3 | | Total | | | | Financial assets1 | | | | | | | | | | | | Cash | ക | 18,797 | \$18,797 \$ | | | | ee | | ಳಿ, | 18.797 | | Reverse
repurchase
agreements | | 41,334 | | | | 41,334 | | | | 41,334 | | Securities
oorrowed | | 12,065,001 | | | 12,065,001 | | | | | 12,065,001 | | Rebates
and fees
receivable
and other
assets | | 484,611 | | | | 484,611 | | | | 484.611 | | Financial liabilities1
Securities | | | | | | | | | | | | oaned | | \$12,065,001 \$ == | | | | | | | | - \$12,065,001 \$ - \$12,065,001 | | Rebates
and fees
payable and
other
liabilities | | 484,524 | | | | 484,524 | | | | 484,524 | | | | | | | | | | | | | 1. The previous table excludes all non-financial assets and liabilities. ## 5. Collateralized Transactions The Company enters into reverse repurchase agreements, securities borrowed, and securities loaned transactions to manage excess liquidity and accommodate counterparties' needs respectively. The Company monitors the fair value of the underlying securities as compared with the related receivable or payable, including accrued interest, and requests or posts additional collateral as required under the applicable agreement to ensure such transactions are adequately collateralized, or that excess collateral is returned Increases in collateral margin calls on securities lending transactions due to market value declines may be mitigated by increases in collateral margin calls on securities borrowing transactions with similar quality collateral. Additionally, the Company may request lower quality collateral pledged be replaced with higher quality collateral through collateral substitution rights in the underlying agreements. The Company actively manages its securities lending transactions in a manner that reduces the potential refinancing risk for less liquid assets and also considers the quality of collateral when negotiating collateral eligibility with counterparties. The Company utilizes shorter-term securities lending transactions for highly liquid assets for which funding may be at risk in the event of a market disruption. {8}------------------------------------------------ #### Offsetting of Certain Collateralized Transactions | At December 31, 2025 | | | |----------------------|--|--| | | | | | | Gross
Amounts | Amounts
Offset | Net
Amounts
Presented | Amounts Not
Offset 1 | Net
Amount | | |-------------------------------------|------------------|--------------------------------------------------------------------|-----------------------------|----------------------------|---------------|--| | Assets | | | | | | | | Reverse
repurchase
agreements | ക
41.334 | ಕ | ങ
41.334 | સ્ત્ર
(40,002) \$ 1,332 | | | | Securities
borrowed | | \$158,986,051 \$(146,921,050) \$12,065,001 \$(12,060,009) \$ 4,992 | | | | | | Liabilities | | | | | | | | Securities
AABAA | | | | | | | \$158,986,051 \$(146,921,050) \$12,065,001 \$(11,971,236) \$93,765 1. Amounts relate to master netting agreements that have been determined by the Company to be legally enforceable in the event of default but where certain other criteria are not met in accordance with applicable offsetting accounting guidance. Gross Securities Lending Balances by Remaining Contractual Maturity | | At December 31, 2025 | | | | | |--------------------------------------------------------------|-----------------------|-------------------------|---------------|--------------------|---------------| | | Overnight
and Open | Less
than 30
Days | 30-90
Days | Over
90
Days | Total | | Securities loaned | \$158,986,051 \$ | | | S | \$158,986,051 | | Total included in the
offsetting disclosure | 158,986,051 | | | | 158,986,051 | | Obligation to return
securities received as
collateral | 7,312,034 | | | | 7,312,034 | | Total | \$166,298,085 \$ | | | ക | \$166,298,085 | #### Gross Securities Lending Balances by Class of Collateral Pledged | | At December 31,
2025 | | | |--------------------------------------------------------------|-------------------------|-------------|--| | Securities loaned | | | | | Corporate equities | ਦਿੱਤਾ | 158,986,051 | | | Obligation to return securities received as collateral | | | | | Corporate equities | ക്ക | 7,303,689 | | | Other | | 8,345 | | | | | | | | | | | | | Total obligation to return securities received as collateral | ક્તિ | 7,312,034 | | | Total | ಕ್ಕಾ | 166,298,085 | | | | | | | #### Collateral Received The Company receives collateral in the form of securities in connection with securities borrowed transactions. In many cases, the Company is permitted to sell or repledge these securities held as collateral and use the securities to enter into securities lending transactions. The Company also receives securities as collateral in connection with certain securities-for-securities transactions. In instances where the Company is the lender and permitted to sell or repledge these securities, it reports the fair value of the collateral received and the related obligation to return the collateral in the statement of financial condition. Securities-forsecurities transactions where the Company is the borrower are not included in the statement of financial condition. At December 31, 2025, the total fair value of financial instruments received as collateral where the Company is permitted to sell or repledge the securities was \$166,298,085, all of which had been repledged. ### 6. Contingencies In the normal course of business, the Company has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions and other litigation, arising in connection with its activities as a global diversified financial services institution. Certain of the actual or threatened legal actions include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. In some cases, the third-party entities that are, or would otherwise be, the primary defendants in such cases are bankrupt, in financial distress, or may not honor applicable indemnification obligations. These actions have included, but are not limited to, antitrust claims, claims under various false claims act statutes, and matters arising from our sales and trading businesses and our activities in the capital markets. The Company is also involved, from time to time, in other reviews, investigations and proceedings (both formal and informal) by governmental or other regulatory agencies regarding the Company's business, and involving, among other matters, financing, prime brokerage, financial products or offerings sponsored, underwritten or sold by the Company, and tax, accounting, and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, disgorgement, restitution, forfeiture, injunctions, limitations on our ability to conduct certain business, or other relief. The Company contests liability and/or the amount of damages as appropriate in each pending matter. Where available information indicates that it is probable a liability had been incurred at the date of the statement of financial condition and the Company can reasonably estimate the amount of that loss or the range of loss, the Company accrues an estimated loss by a charge to income, including with respect to certain of the individual proceedings or investigations described below. The Company's legal expenses can, and may in the future, fluctuate from period to period, given the current environment regarding government or regulatory agency investigations and private litigation affecting global financial services firms, including the Company. In many legal proceedings and investigations, it is inherently difficult to determine whether any loss is probable or reasonably possible, or to estimate the amount of any loss. In addition, even where the Company has determined that a loss is probable or reasonably possible or an exposure to loss or range of loss exists in excess of the liability already accrued with respect to a previously recognized loss contingency, the Company may be unable to reasonably estimate the amount of the loss or range of loss. 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