# GLOBAL EXECUTION BROKERS, LP X-17A-5 (2022-02-28) — Broker-dealer annual report - Company: GLOBAL EXECUTION BROKERS, LP - Form: X-17A-5 - Filed: 2022-02-28 - Period: 2021-12-31 - Accession: 0001224656-22-000001 - CIK: 1224656 - File #: 8-65878 - Type: Broker-dealer - Material weakness: No - Auditor: EISNERAMPER,LLP - Auditor location: NEW YORK, NY - Contact: Robert C Sack - Phone: 610-617-2812 - Email: rob.sack@sig.com - Website: sig.com - Signed by: Robert C Sack (Treasurer) Original filing: https://www.sec.gov/Archives/edgar/data/1224656/000122465622000001/gebsfc.pdf --- {0}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** **0MB APPROVAL 0MB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12** # **ANNUAL REPORTS FORM X-17A-5 PART Ill** | | SEC FILE NUMBER | | |--|-----------------|--| | | | | 8-65878 **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 \_\_ o\_i\_/O\_l\_/2\_o\_2-\_l \_\_\_ AND ENDING \_\_\_ 1\_1231 \_1\_2\_D\_2\_\_\_ 1 \_ MM/DD/VY MM/DD/VY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: GLOBAL EXECUTION BROKER, LP TYPE OF REGISTRANT (check all applicable boxes): **[ST** Broker-dealer □ Security-based swap dealer **D Check here if respondent is also an OTC derivatives dealer** D Major se·curity-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 401 CITY AVENUE, SUITE 220 **(No. and Street)** BALA CYNWYD PA **(City) (State)** PERSON TO CONTACT WITH REGARD TO THIS FILING 19004 **(Zip Code)** ROBERT SACK 610-617-2812 ROB.SACK@SIG.COM **(Name) (Area Code -Telephone Number) (Email Address) B. ACCOUNTANT IDENTIFICATION** INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing\* EISNERAMPER, LLP **(Name - if individual, state last, first, and middle name)** 733 THIRD AVENUE NEW YORK NY **(Address) (City) (State)** 09/29/2003 274 10017 **(Zip Code)** r• **of RegiWatioo with PCAOBJI• appli cable) FOR OFFICIAi.. USE ONLY (PCAOB Registratioo N,mbec, if applicable) I** **• Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-S(e)(l)(ii), if applicable.** **Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid 0MB control number.** {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | ROBERT SACK | | | | | | |-------------|--|--|--|--|--| |-------------|--|--|--|--|--| 1, ROBERT **SACK** swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of GLOBAL EXECUTION BROKER LP as of DECEMBER 31 2EL 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 **Commonwealth** *of* **Pennsylvania - Notary** Seal Christina **Weigand,** Notary Public **Montgomery** County My **Commission Expires November 8, 2025** Commission Number 1409542 Signatu:� Title: TREASURER Notary Public #### **This filing\*\* contains (check all applicable boxes):** - � (a) Statement of financial condition. - � (b) Notes to consolidated statement of financial condition. - D (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in§ 210.1-02 of Regulation S-X). - D (d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - D (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-l, as applicable. - D (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 240.15c3-3. - D (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable. - D (I) Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. - 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. - D (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-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. - D (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - I¥' (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. - D (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7,. as applicable. - &' (t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-S, 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 the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.l 7a 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-le or 17 CFR 240.17a-12, as applicable. - D (y) Report describing any material inadequacies found to exist or found to have existed since the date of the prev i ous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - D (z) Other:-------- ---------------------------- *\*\*To request confidentiol treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2}, as applicable.* {2}------------------------------------------------ **(a limited partnership)** **STATEMENT OF FINANCIAL CONDITION** **December 31, 2021** {3}------------------------------------------------ # **EISNERAMPER** **EisnerAmper LLP 733 Third Avenue New York, NY 10017 T 212.949.8700 F 212.891.4100 www.e1sneramper com** # **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** To the Partners of Global Execution Brokers, LP #### *Opinfon on the Financial Statement* We have audited the accompanying statement of financial condition of Global Execution Brokers, LP (the "Entity") as of December 31, 2021 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 Entity as of December 31, 2021, in conformity with accounting principles generally accepted in the United States of America. ### *Basis for Opinion* This financial statement is the responsibility of the Entity's management. Our responsibility is to express an opinion on the Entity's 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 indep endent with respect to the Entity 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 materrial misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether diue 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 provides a reasonable basis for our opinion. We have served as the Entity's auditor since 2010. EISN ERAMPER LLP New York, New York February 25, 2022 ![](_page_3_Picture_12.jpeg) -- **·EisnerAmper·** i **s the brand name under which EisnerAmper LLP and Eisner Adv sory Group LLC provide professional serv** i **ces. tisnerAmper LLP and �isner Adv sory Group LLC are independenty owned firms that practice in an aternat ve practice structure in accordance with the AICPA Code of Profess onal Conduct and applicable aw, reguat ons and professional standards. EisnerAmper LLP is a licensed CPA firm that provides attest services, and Eisner Advisory Group LLC and ts subs diary entit**i **es provide tax and business consult ng servces. Eisner Advisory Group LLC and its subsidiary ent**i **ties are not licensed CPA firms.** {4}------------------------------------------------ ### **Statement of Financial Condition December 31, 2021** | Assets | | |---------------------------------------------------------------|--------------------------| | Cash | 212
\$ | | Receivable from clearing brokers | 156,060,817 | | Accrued trading receivables | 28,382,037 | | Receivable from affiliates | 36,960,069 | | Fixed assets (net of accumulated depreciation of \$2,954,929) | 465,278 | | Other assets | 4,279,475 | | Total assets | \$ 2261
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888 | | Liabilities and partners' capital | | | Marketing and transaction fees payable | 84,964,110
\$ | | Payable to affiliates | 2,406,970 | | Accrued compensation | 28,419 | | Accrued expenses and other liabilities | 382,008 | | Total liabilities | 87,781,507 | | Partners' capital | 138,366,381 | | Total liabilities and partners' capital | \$ 2261
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888 | {5}------------------------------------------------ # **Notes to Statement of Financial Condition December 31, 2021** # **NOTE A - ORGANIZATION** Global Execution Brokers, LP (the "Entity") is a registered broker-dealer with the Securities and Exchange Commission (the "SEC"). The Entity's designated self-regulatory organization is the Chicago Board Options Exchange. The Entity is a member of the National Futures Association (the "NFA") and it is registered with the Commodity Futures Trading Commission (the "CFTC"). The Entity provides order execution services on various exchanges and alternative trading systems for affiliates. The Entity is owned 99.9% by Susquehanna Internat onal Group, LLP ("SIG") and 0.1 % by SFG Partner, LLC. # **NOTE B - SIGNIFICANT ACCOUNTING POLICIES** The Entity records purchases and sales of securities, revenue from order flow and related expenses on a tradedate basis. Interest income is recorded on the accrual basis. The Entity maintains cash in bank accounts which, at times, may exceed federally insured limits. Depreciation of fixed assets is computed using the double-declining balance method over the estimated useful life of the assets. Revenue from contracts with customers consists of order flow and order execution services provided to affiliates. Each time the Entity provides order flow or executes an order, it has fulfilled all performance obligations, and therefore, recognizes and records the revenue associated with order flow and order execution on a trade date basis. In accordance with Accounting Standards Codification ("ASC") Topic 326, Financial Instruments-Credit Losses ("ASC 326"), the Entity assessed certain financial assets measured at amortized cost for credit losses using a current expected credit loss ("CECL") methodology to estimate expected credit losses over the life of the financial asset, as of the reporting date based on relevant information about past events, current conditions, and reasonable and supportable forecasts. Receivable from clearing brokers; the Entity has concluded that there are currently no expected credit losses based on the nature and contractual life or expected life of the financial assets held at each of the Entity's clear ng brokers and clearing organizations. Certain trades and contracts are cleared through a centralized clearing organization and settled daily between the clearing organization and the Entity's prime broker, therefore limit ng the amount of unsettled credit exposure.The Entity monitors the capital adequacy of such organizations. This statement of financial condition has been prepared in conformity with accounting principl,es generally accepted in the United States of America, which require the use of estimates by management. ### **NOTE C - RECEIVABLE FROM CLEARING BROKERS AND CONCENTRATION OF CREDIT RISK** The clearing and depository operations for the Entity are provided by Merrill Lynch Professional Clear**i** ng Corp. At December 31, 2021, substantially all of the amounts receivable from clearing brokers reflected on the statement of financial condition are amounts due from this clearing broker. {6}------------------------------------------------ ### **Notes to Statement of Financial Condition December 31, 2021** # **NOTE D - RELATED PARTY TRANSACTIONS** The Entity is affiliated through common ownership with Susquehanna Technology Management, Inc. ("STMI"), and Susquehanna Israel Technologies, LTD ("SITLTD"). SIG acts as a common payment agent for the Entity and various affiliates for various direct and indirect operating expenses. The Entity pays for the indirect costs at an amount agreed upon between the Entity and SIG based on allocations determined at SIG's discretion. SIG also provides assistance, maintenance, advice, and other similar services to the Entity and various affiliates in respect of certain intellectual property. The Entity pays for these intellectual property related services pursuant to a formula agreed upon between the Entity and SIG. Included in payable to affiliates is \$464,766 related to these foregoing costs and services. SIG also provides infrastructure support services to the Entity and various affiliates. The Entity pays a monthly fee for these services based on allocations determined at SIG's discretion. Included in payable to affiliates is \$1,680 related to these services. STMI and SITLTD provide administrative and technology services to the Entity and various affiliates. The Entity pays a monthly management fee for these services based on allocations determined at STMI and SITLTD's discretion. Included in payable to affiliates are \$52,667 and \$1,875, respectively, related to these services. The Entity enters into agreements with order flow providers and pays the providers an agreed-upon marketing fee for sending their orders through the Entity's order routing system. The Entity aggregates this order flow and may give preference to affiliates which are liquidity providers on the exchange where such orders are executed. In return for giving preference to these affiliates, the Entity receives payment for order flow directed to it by these affiliates. Included in receivable from affiliates is \$15,457,412 related to this arrangement. Affiliates of the Entity which are liquidity providers on various exchanges may direct their order flow providers to route orders by way of the Entity's router and execution services. These affiliates benefit from this activity and make payments for order flow directly to such order flow providers based on previously agreed-upon rates. In these instances, the Entity has no liability regarding the affiliates' payments for order flow and only provides the routing and execution services on behalf of its affiliates. This arrangement is reviewed annually and adjusted as deemed necessary by management. The Entity executes trades for affiliated broker-dealers for which it receives a fee or owes a rebate, based on liquidity provided. The fee is based on trading and execution charges, plus a surcharge to cover other costs and, for certain affiliates, receives a fixed monthly fee to cover other order execution charges. Included in receivab e from and payable to affiliates is a net amount due from these affiliates of \$20,659,388 related to these fees. Because of their short-term nature, the fair values of the payable to and receivable from affiliates approximate their carrying amounts. The Entity and various other entities are under common ownership and control. As a result, management can exercise its discretion when determining which entity will engage in new or current business activities and/or trade new products. Therefore, the financial posit**i** on presented herein may not necessarily be indicative of that which would be obtained had these entities operated autonomously. {7}------------------------------------------------ # **Notes to Statement of Financial Condition December 31, 2021** # **NOTE E - DERIVATIVE FINANCIAL INSTRUMENTS** Derivative financial instruments may be used to manage market risk and to take an active long or short position in the market. Should interest rates or credit spreads move unexpectedly, anticipated benefits may not be achieved and a loss realized. Furthermore, the use of derivative financial instruments involves the risk of imperfect correlaton in movements in the price of the instruments, interest rates and the underlying assets. Derivatives used for risk management include options. The following table sets forth the annual volume of the Entity's derivative financial instruments by major product type on a gross basis for the year ended December 31, 2021: > **Approximate Annual Volume (Contracts)** 29,029 # **NOTE F - INCOME TAXES** Options No provision for federal income taxes has been made because the Entity is a partnership and, therefore, is not subject to federal income taxes. The Entity is currently not subject to state or local income taxes. At December 31, 2021, management has determined that there are no material uncertain income tax positions. # **NOTE G - NET CAPITAL REQUIREMENT** As a registered broker-dealer, the Entity is subject to the SEC's Uniform Net Capital Rule 15c3-1 and is also subject to the net capital requirements of the CFTC Regulation 1.17 and the requirements of the NFA. The Entity computes its net capital under the alternative method permitted by the rule, which requires it to maintain minimum net capital of \$250,000. At December 31, 2021, the Entity had net capital of \$77,029,818 which exceeded its requirement of \$250,000 by \$76,779,818. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.