# GLOBAL EXECUTION BROKERS, LP X-17A-5 (2024-02-29) — Broker-dealer annual report - Company: GLOBAL EXECUTION BROKERS, LP - Form: X-17A-5 - Filed: 2024-02-29 - Period: 2023-12-31 - Accession: 0001224656-24-000001 - CIK: 1224656 - File #: 8-65878 - Type: Broker-dealer - Material weakness: No - Auditor: PricewaterhouseCoopers, LLP - Auditor location: New York, NY - Contact: Robert Sack - Phone: 610-617-2812 - Email: rob.sack@sig.com - Website: sig.com - Signed by: Robert Sack (Treasurer) Original filing: https://www.sec.gov/Archives/edgar/data/1224656/000122465624000001/gebsfc.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION** Washington, **D.C. 20549** | ANNUAL REPORTS | |----------------| | FORM X-17A-5 | | PART Ill | | 0MB APPROVAL | |--------------------------| | 0MB Number: 3235-0123 | | Expires: Nov. 30, 2026 | | Estimated average burden | | hours per response: 12 | | | **SECFILE NUMBER** 8-65878 **FACING PAGE** Information Required Pursuant to Rules 17a-S, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 FILING FOR THE PERIOD BEGINNING O **1/01/2023** **MM/0O/YY** AND ENDING 1213112023 **MM/DD/VY** **A. REGISTRANT IDENTIFICATION** # NAME OF FIRM: GLOBAL EXECUTION BROKER, LP TYPE OF REGISTRANT (check all applicable boxes): 0Broker-dealer □ Security-based swap dealer D Check here if respondent is also an OTC derivatives dea er D Major security-based swap participant ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # 401 CITY AVENUE, SUITE 220 | | (No. arxl Street) | | |----------------|-------------------|------------| | BALA
CYNWYD | PA | 19004 | | (City) | (State) | (Zip Code) | #### PERSON TO CONTACT WITH REGARD TO THIS FILING # 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\* # PricewaterhouseCoopers LLP | | (Name - if individual, state last, first, and middle name) | | | |---------------------------------------------------|------------------------------------------------------------|--------------------------------------------|------------| | 300 Madison Avenue | New York | NY | 10017 | | {Address) | (City) | (State) | (Zip Code) | | 10/20/2003 | | 238 | | | (Date of Registration with PCAO8)(if ;ipplicable) | | (PCAO8 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 crcumstances 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 CK S A
I, | | 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 | | 12/31 | | 2� is true and correct. I further swear (or affirm) that neither the company nor any | | | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | | as that of a customer. | | | | | | | | | | | Commonweait� of Pennsylvinia • Notary S"\
MICHAEL L MOLLEH • Not�ry Publlc
MOntgomery County | _T_A_E_U_SE_R _
_ R ____________ _ | | '1/J\_ l 1,k ,\_\_/, diq Notary Public #### This filing\*\* contains (check all applicable boxes): - � (a) Statement of financial condition. - l!ij (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). **My Commission Expires June 14, 2026 Commission Number 1225167** - 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 U) CQmputation for determination of customer reserve requirements purs1,1�nt 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 240.1Sc3-3 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 240.1Sc3-3. - D (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.1Sc3-3(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 240.1Sc3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.1Sc3-3 or 17 CFR 240.lSa-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. - ii (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-S or 17 CFR 240.lSa-7, as applicable. - D (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.lSa-7, as applicable. - I!! (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-5, 17 CFR 240.lSa-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-S 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 240.17a-S or 17 CFR 240.18a-7, as applicable. - □ (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 previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - D (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.* {2}------------------------------------------------ **(a limited partnership)** **STATEME T OF Fl A CIAL CO DITIO** **December 31**1 **2023** {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) #### **Report of Independent Registered Public Accounting Firm** **To the Partners of Global Execution Brokers, LP** #### *Opinion on the Financial Statement* **-** *Statement of Financial Condition* **We have audited the accompanying statement of financial condition of Global Execution Brokers, LP (the "Company") as of December 31, 2023, including 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, 2023, 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 the Company'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 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 of this financial statement in accordance with the standards of t11e 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 provides a reasonable basis for our opinion.** **Philadelphia, Pennsylvania** February 27, 2024 **We have served as the Company's auditor since 2023.** {4}------------------------------------------------ ### **Statement of Financial Condition December 31, 2023** | Assets | | |-----------------------------------------|------------------| | Receivable from clearing brokers | \$ 175,830,169 | | Accrued trading receivables | 41,391,253 | | Receivable from affiliates | 32,071,058 | | Prepaid assets | 11,840,687 | | Total assets | \$ 261,133,167 | | Liabilities and partners' capital | | | Marketing and transaction fees payable | 61,774,030
\$ | | Payable to affiliates | 1,342,856 | | Accrued compensation | 24,389 | | Accrued expense\$ and other liabilities | 282,767 | | Total liabilities | 63,424,042 | | Partners' capital | 197,709,125 | | Total liabilities and partners' capital | \$ 261,133,167 | {5}------------------------------------------------ #### **Notes to Statement of Financial Condition December 31, 2023** ## **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 International **Group, LLP ("SIG") and 0.1 % by SFG Partner, LLC.** ## **NOTE B - SIGNIFICANT ACCOUNTING POLICIES** #### **Financial Instruments** **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.** #### **Cash** **The Entity maintains a deposit account for cash, which at times, may exceed federally insured limits of \$250,000.** #### **Prepaid Assets** Prepaid assets consist of prepaid exchange fees related to order execution services. #### **Orderflow and Order Execution** **Marketing and execution fees consist of payments made for order flow and order execution services. These fees are accrued on a trade date basis.** **Order execution rebates consists of rebates received for volume discounts, credits or payments received from exchanges or other marketplaces related to the placement and/or removal of liquidity from the order flow in the marketplace. Rebates are recorded on an accrual basis.** ## **Revenue From Contracts** **Revenue from contracts 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.** ### **Current Expected Credit Losses ("CECL")** **The Entity assessed certain financial assets, as noted below, measured at amortized cost for credit losses using a 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 clearing 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 limiting the amount of unsettled credit exposure. The Entity monitors the capital adequacy of such organizations.** {6}------------------------------------------------ #### **Notes to Statement of Financial Condition December 31, 2023** ### **NOTE B - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)** #### **Use of Estimates** **This statement of financial condition has been prepared in conformity with accounting principles generally accepted in the United States of America, which require the use of estimates by management. Actual results could differ from those estimates.** ### **NOTE C - RECEIVABLE FROM CLEARING BROKERS AND CONCENTRATION OF CREDIT RISK** **The clearing and depository operations for the Entity are primarily provided by BofA Securities, Inc.** **At December 31, 2023, substantially all of the amounts receivable from clearing brokers reflected on the statement of financial condition are amounts due from this clearing broker.** ### **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 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 in respect of certain intellectual property. The Entity pays for these intellectual property related services** pursuant to a formula agreed upon betv.ieen the Entity and SIG. Included in payable to affiliates is \$407,297 **related to these foregoing costs and services.** **SIG also provides infrastructure support services to the Entity. The Entity pays a monthly fee for these services based on allocations determined at SIG's discretion. Included in payable to affiliates is \$6,813 related to these services.** **STMI and SITLTD provide administrative and technology services to the Entity. The Entity pays a monthly management fee for these services based on allocations determined at STMl's and SITLTD's discretion, as applicable. Included in payable to affiliates are \$55,909 and \$1,150, 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 \$26,635,093 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 ser-vices. 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, a fixed monthly amount. Included in receivable from and payable to affiliates is \$3,718,446 and \$500,098, respectively, related to these services.** {7}------------------------------------------------ #### **Notes to Statement of Financial Condition December 31, 2023** ## **NOTE D - RELATED PARTY TRANSACTIONS (CONTINUED)** 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 position presented herein may not necessarily be indicative of that which would be obtained had these entities operated autonomously. ### **NOTE E - DERIVATIVE FINANCIAL INSTRUMENTS** The following table sets forth the annual volume of the Entity's derivative financial instruments, which are short term residual positions resulting from order execution, by major product type on a gross basis for the year ended December 31 , 2023: ## **Annual Volume (Contracts)** 27,845 Options # **NOTE F - INCOME TAXES** 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. The Entity's U.S. federal income tax return is generally subject to examination by the Internal Revenue Service for a period of three years after it is filed. State and local tax returns and/or other filings may be subject to examination for different periods, depending upon the tax rules of each applicable jurisdiction. The Entity is not presently associated with an open tax examination. At December 31, 2023, 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 1 5c3-1 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, 2023, the Entity had net capital of \$112,456,530 which exceeded its requirement of \$250,000 by \$112,206,530. #### **NOTE H -SUBSEQUENT EVENTS** The Entity evaluated subsequent events to consider if the impact of such events ne eded to be reflected or disclosed on the statement of financial condition. Such evaluation was performed through February 27, 2024, the date that this statement of financial condition was available to be issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.