# PLACE TRADE FINANCIAL, INC. X-17A-5 (2022-09-30) — Broker-dealer annual report - Company: PLACE TRADE FINANCIAL, INC. - Form: X-17A-5 - Filed: 2022-09-30 - Period: 2022-06-30 - Accession: 0001228096-22-000003 - CIK: 1228096 - File #: 8-65915 - Type: Broker-dealer - Material weakness: No - Auditor: Ohab and Company, P.A. - Auditor location: Maitland, FL - Contact: Sarah M Place - Phone: 9197197200 - Email: sarah@placetrade.com - Website: placetrade.com - Signed by: Sarah M. Place (President) Original filing: https://www.sec.gov/Archives/edgar/data/1228096/000122809622000003/SECPUBLICPCAOBAUDIT2022s.pdf --- {0}------------------------------------------------ | | UNITED STATES | | 0MB APPROVAL | | | | |-----------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|-------------------------------------------------|--|--|--| | | SECURmES AND EXCHANGE COMMISSION | | 0MB Number: 3235-0123
Expires; Oct. 31, 2023 | | | | | PUBLIC | Washington, D.C. 20549 | | Estimated average burden | | | | | | | | hours per response: 12 | | | | | | ANNUAL REPORTS | | SEC ALE NUMBER | | | | | | FORM X-17A-5 | | | | | | | | PART Ill | | | | | | | | | | | | | | | FACING PAGE | | | | | | | | Information Required Pursuant to Rules 17a-s, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | | | AND ENDING 06/30/2022
FILING FOR THE PERIOD BEGINNING 07/01/2021 | | | | | | | | MM/00/YY
MM/DD/VY | | | | | | | | A. REGISTRANT IDENTIRCATION | | | | | | | | | | | | | | | | NAMEOFFIRM: Place Trade Financial, Inc. | | | | | | | | TYPE OF REGISTRANT (check all applicable boxes): | | | | | | | | i!!I Broker-dealer
□ Security-based swap dealer
□ Major security-based swap participant | | | | | | | | D Check here if respondent is also an OTC derivatives dealer | | | | | | | | | | | | | | | | | ADDRESS OF PRINCIPAL PIACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | 6501 New Market Way | | | | | | | | | (No. and Street) | | | | | | | Raleigh | NC | | 27615 | | | | | (Oty} | (State) | | (Zip Code} | | | | | | | | | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | Sarah M. Place | (919)719-7200 | | sarah@placetrade.com | | | | | (Name) | (Area Code - Telephone Number) | | (Email Address) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | | | | | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing* | | | | | | | | OHAB AND COMPANY, PA | | | | | | | | | (Name-if individual, state last, first, and middle name) | | | | | | | | 100 E SYBELIA AVE, SUITE 130 MAITLAND | FL | 32751 | | | | | (Address) | (City) | (State) | (Zip Code) | | | | | JULY 29, 2004 | | 1839 | | | | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | | | FOR OFFIOAL USE ONLY | | | | | | | | | | | | | | | | | • aaims 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 | | | | | | | | | | | | | | **Persons who are to respond to the collection of Information contained In this form are not required to respond** unless **the form displays a cunently** valid **0MB control number.** CFR 240.17a-5(e)(1)(ii), if applicable. {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | | swear (or affirm) that, to the best of my knowledge and belief, the
1, Sarah M. Place | | | | | |---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--| | | 2~
financial report pertaining to the firm of Place Trade Financial, Inc.
as of | | | | | | | is true and correct. I further swear (or affirm) that neither the company nor any
30 June | | | | | | | partner, officer, director, or equivalent person, as the case may be, has any proprietary i
est in any account classified solely | | | | | | | as that of a customer.
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This filing•• contains {check all appli
NOTARY | | | | | | | I!! (a) Statement of financial condition.
_ | | | | | | | .___
I!! (b) Notes to consolidated statement of financial condition.
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· | | | | | | | D (c) Statement of income (loss) or, if there is other comprehensive i.
sented, a statement of
1"1:rn:161ili:.'5 | | | | | | | comprehensive income (as defined in§ 210.1-02 of Regulation S-X).
'I . | | | | | | 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 0) 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.lBa-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 | | | | | | | 240.15c3-3(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. | | | | | | | 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 240.18a-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 240.17a-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-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:
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_ | | | | | | | | | | | | *\*\*To request confidential 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}------------------------------------------------ ![](_page_2_Picture_2.jpeg) {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) 100 E. Sybelia Ave. Suite 130 MaiUand, FL 32751 *Certified Public Accountants* Email: pam(964 | | Wells Fargo High Yield Savings | 26,002 | | Wells Fargo Savings | 516 | | Total Wells Fargo | 27,481 | | Total Checking/Savings | 27,481 | | Accounts Receivable | | | lr11Drest Receivable | 6 | | Commissions Rec | 723 | | Total Accounts Receivable | 728 | | Other Current Assets | | | CRD Deposits | 55 | | Interactive BrokersCash | 44~765 | | Interactive Brokers Clearing | 1 | | Total Other Current Assets | 44,822 | | Total Cunent Assets | 73,032 | | TOTAL ASSETS | 73,032 | | LIABILITIES & STOCKHOLDERS' EQUITY | | | Liabilities | | | Current Liabilities | | | Accounts Payable | | | Accounts Payable | 14,418 | | Total Accounts Payable | 14,418 | | Total Current Liabilities | 14,418 | | Total Liabilities | 14,418 | | Equity | | | Additional Paid In Capital | 152,742 | | Common Stock, 400 Issued & Outstanding | 1,000 | | Retained Eamings | (80,385) | | Net Income | (14,744) | | Total Stockholders' Equity | 58,614 | | TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | \$
73,032 | The accompanying notes are an integral part of these financial statements. {5}------------------------------------------------ # **Place Trade Financial, Inc. Notes to Financial Statements For the Period July 1, 2021- June 30, 2022** ## NOTE **A- SUMMARY** OF ACCOUNTING POLICIES Accounting principles followed by the Company and the methods of applying those principles which materially affect the determination of financial position, results of operation and cash flows are summarized below: ## Organization Place Trade Financial, Inc., (the "Company''), is a full service, discount brokerage firm, incorporated on December 31, 2002, based on Raleigh, North carolina with offices in Raleigh, North carolina. The Company is a broker-dealer in securities, registered with the Securities and Exchange Commission (SEC) and is a member of various exchanges and the Financial Industry Regulatory Authority, Inc. (FINRA). The Company's securities are cleared through a clearing broker-dealer. The Company does not maintain customer's securities accounts nor does it perform custodial functions related to customer securities. ## Description of Business The Company, located in Raleigh, NC, is a broker and dealer in securities registered with the Securities and Exchange Commission ("SEC") and is a member of FINRA-and the SIPC. The Company operates under SEC Rule 15c3-3(k)(2)(ii), which provides that all funds and securities belonging to the Company's customers are held by a clearing broker-dealer through which all transactions for its customers are cleared on a fully-disclosed basis. The Company facilitates the purchase and sale of securities, earns interest rebates on customer accounts and provides a trading platform for independent investors as well as registered representatives. ## **Basis** of Accounting ' The financial statements of the Company have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. ## Cash and cash Equivalents The Company considers as cash all short-term investments with an original maturity of three months or less to be cash equivalents. ## Accounts Receivable - Recognition of Bad Debt The Corporation considers accounts receivable to be fully collectible; accordingly, no allowance for doubtful accounts is required. If amounts become uncollectible, they will be charged to operations when that determination is made. {6}------------------------------------------------ # **Place Trade Financial, Inc. Notes to Financial Statements For the Period July 1, 2021- June 30, 2022** ## Revenue Recognition The Company buys and sells securities on behalf of its customers. Each time a customer enters into a buy or sell transaction, the Company charges a commission. Commissions and related clearing expenses are recorded on the trade date (the date that the Company fills the trade order by finding and contracting with a counterparty and confirms the trade with the customer). The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership of the securities have been transferred to/from the customer. Commission revenues are recorded by the Company when the services are rendered. 12-B fee revenue is recorded on the completion of the applicable transaction. Client margin interest rebate income, which is the net interest earned on margin balances held in customer accounts, and other income are recognized monthly on an as earned basis, which is when the Company believes its' performance obligations have been satisfied. ### Income Taxes The Company elected *"Sn* corporation status for federal income tax purposes. Under "S" corporation regulations, net income or loss is reportable for tax purposes by the shareholders. Accordingly, no federal income taxes are included in the accompanying financial statements. It is the Company's policy to recognize any interest and penalties in the provision for taxes. #### Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 could differ from those estimates. #### Exemptive Provisions Rule 15c3-3 The Company is exempt from Rule 15c3-3 because all customer transactions are cleared through another broker-dealer on a fully disclosed basis. The client is exempt under 15c3-3(k)(2)(ii). Name of clearing firm is Interactive Brokers, LLC. #### Fair Value of Financial Instruments Ff nancial instruments that are subject to fair value disclosure requirements are carried in the financial statements at amount that approximate fair value and include cash and cash equivalents. Fair values are based on quoted market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates reflecting varying degrees of perceived risk. #### SUBSEQUENT EVENTS Based upon this review, the Company has determined that there were no events through the date that the financial statements were available to be issued. {7}------------------------------------------------ # **Place Trade Financial, Inc. Notes to Financial Statements For the Period July 1, 2021** - **June 30, 2022** # NOTE 8- NET CAPITAL REQUIREMENTS Pursuant to the net capital provisions of Rule 15c3-1 of the Securities and Exchange Act of 1934, the Company is required to maintain a minimum net capital, as defined under such provisions. Net capital and the related net capital ratio may fluctuate on a daily basis. There were no material inadequacies in the amount reported as Net Capital in the audited Computation of Net capital and the broker-dealer's corresponding Part I IA of the FOCUS report required under Rule 15c3-1. ## NOTE C- POSSESSION OR CONTROL REQUIREMENTS The Company does not have any possession or control of customer's funds or securities. There were no material inadequacies in the procedures followed in adhering to the exemptive provisions of SEC Rule 15c-3- 3(k)(2)(ii) by promptly transmitting all customer funds or securities to the clearing broker who carries the customer accounts. ## NOTE D - OTHER COMMITMENTS AND CONTINGENCIES Included in the Company's clearing agreement with its clearing broker-dealer is an indemnification clause. This clause relates to instances where the Company's customers fail to settle security transactions. In the event this occurs, the Company will indemnify the clearing broker-dealer to the extent of the net loss on the unsettled trade. At June 30, 2022, management of the Company had not been notified by the clearing broker-dealer, nor were they otherwise aware of any potential losses relating to this indemnification. ## NOTE E - SIPC RECONCILIATION SEA Rule 17a-S(e)(4) requires a registered broker-dealer to file a supplemental report which includes procedures related to the broker-dealers SIPC annual general assessment reconciliation or exclusion-frommembership forms. In circumstances where the broker-dealer reports \$500,000 or less in gross revenues, they are not required to file the supplemental SIPC report. The Company is exempt from filing the supplemental report under SEA Rule 17a-S(e)(4) because it is reporting less than \$500,000 in gross revenue. ## NOTE F - LEASES The Company leases its office space on a month-to- month basis with a non-related party. The total rent expense for the twelve-month period ended June 30, 2022 was \$2,700. This agreement provides basic services including voice messaging, conference and visitor office use. The Company has elected not to apply the recognition requirements of Topic 842 relating to its month to month office lease and instead has elected to recognize the lease costs on a straight line basis over the lease term. ## NOTE G- RELATED PARlYTRANSACTIONS Certain expenses of the Company (such as equipment, insurance, office supplies, regulatory fees, storage, telephone, travel and utilities) are paid for by and reimbursed to the shareholder. At June 30, 2022, there are no amounts due to the shareholder by the Company. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.