# REDROCK TRADING PARTNERS, LLC X-17A-5 (2020-03-02) — Broker-dealer annual report - Company: REDROCK TRADING PARTNERS, LLC - Form: X-17A-5 - Filed: 2020-03-02 - Period: 2019-12-31 - Accession: 0001306928-20-000001 - CIK: 1306928 - File #: 8-66707 - Material weakness: No - Auditor: Elliot Davis Decosimo LLC/PLLC - Auditor location: Greenville, SC - Contact: Thane Plummer - Phone: 706-364-2567 - Signed by: Thane Plummer (Managing Director) Original filing: https://www.sec.gov/Archives/edgar/data/1306928/000130692820000001/RedrockAudit2019.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: August 31, 2020 Estimated average burden hours per response ...... 12.00 **8-** | ANNUAL AUDITED REPORT | |-----------------------| | FORM X-17A-5 | | PART Ill | | SEC FILE NUMBER | |-----------------| | | **FACING PAGE** **Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | REPORT FOR THE PERIOD BEGINNING | -----------
0 1/01/2019
MM/DD/YY | AND ENDING | -----------
12/31/2019
MM/DD/YY | | |------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|-------------------|---------------------------------------|--| | | A. REGISTRANT IDENTIFICATION | | | | | NAME oF BROKER-DEALER: Red rock Trading Partners, LLC | | OFFICIAL USE ONLY | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | FIRM I.D. NO. | | | | 2605 Walton Way | | | | | | | (No. and Street) | | | | | | | | 30904 | | | (City) | (State) | | (Zip Code) | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT
Thane Plummer
(706) 364-2567 | | | | | | | | | (Area Code - Telephone Number) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report* | | | | | | Elliott Davis Decosimo LLC/PLLC | | | | | | | (Name - if individual, state last,first, middle name) | | | | | 200 East Broad Street | Greenville | SC | 29606 | | | (Address) | (City) | (State) | (Zip Code) | | | CHECK ONE: | | | | | | I ti' I Certified Public Accountant | | | | | | Public Accountant | | | | | | Accountant not resident in United States or any of its possessions. | | | | | | | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | *\*Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis for the exemption. See Section 240.l 7a-5(e)(2)* > **Potential 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 val id OM B control number.** {1}------------------------------------------------ ## OATH OR AFFIRMATION Thane Plummer 1 were would many as a manus many . swear (or affirm) that. to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of Redrock Trading Partners, LLC ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. . . . . . . . . . . . . . . . . 20 19 . are true and correct. I further swear (or affirm) that of December 31st neither the company nor any partner, principal officer or director has any proprietary interest in any account classified solely as that of a customer, except as follows: Signature Managing Director Title Notary Public - This report \*\* contains (check all applicable boxes): - (a) Facing Page. - (b) Statement of Financial Condition. - (c) Statement of Income (Loss). - (d) Statement of Changes in Financial Condition. - (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietors' Capital. - (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. - (g) Computation of Net Capital. - (h) Computation for Determination of Reserve Requirements Pursuant to Rule 1503-3. - (i) Information Relating to the Possession or Control Requirements Under Rule 15c3-3. - (i) A Reconciliation, including appropriate explanation of Net Capital Under Rule 15e3-1 and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. - - (k) A Reconciliation between the and unaudited Statements of Financial Condition with respect to methods of consolidation. - (I) An Oath or Affirmation. - (m) A copy of the SIPC Supplemental Report. - 1 (n) A report describing any material inadequacies found to have existed since the date of the previous audit. \*\* For conditions of confidential treatment of certain portions of this filing, see section 240.17a-5(e)(3). ![](_page_1_Picture_24.jpeg) {2}------------------------------------------------ # **0 elliott davis** #### **Report of Independent Registered Public Accounting Firm** To the Board of Directors Redrock Trading Partners, LLC Augusta, Georgia #### **Opinion on the Financial Statements** We have audited the accompanying statement of financial condition of Redrock Trading Partners, LLC (the "Company") as of December 31, 2019, and the related statements of operations, changes in member's equity and cash flows for the year then ended, and the related notes to the financial statements (collectively, "the financial statements"). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2019, and the results of its 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 the Company's management. Our responsibility is to express an opinion on the Company's financial statements 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 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 statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. Our 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. 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 statements. We believe that our audit provides a reasonable basis for our opinion. #### **Supplemental Information** The supplemental information contained in Schedule 1-Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission (the "Supplemental Information") has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The Supplemental Information is the responsibility of the Company's management. Our 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 our opinion on the Supplemental Information, we evaluated whether the Supplemental Information, including its form and content, is presented in conformity with 17 C.F.R. § 240.17a-5. In our opinion, the supplementary information contained in Schedule 1 - elliottdavis.com {3}------------------------------------------------ Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission is fairly stated, in all material respects, in relation to the financial statements as a whole. We have served as the Company's auditor since 2013. Raleigh, North Carolina February 27, 2020 {4}------------------------------------------------ #### REDROCK TRADING PARTNERS. LLC FINANCIAL STATEMENTS DECEMBER 31 , 2019 {5}------------------------------------------------ ## **REDROCK TRADING PARTNERS, LLC STATEMENT OF FINANCIAL CONDITION YEAR ENDED DECEMBER 31, 2019** #### **ASSETS** | Cash and cash equivlaents
Commissions receivable | \$
22,045
14,112 | |-----------------------------------------------------|------------------------| | Total assets | \$
36,157 | | LIABILITIES AND MEMBER'S EQUITY
Liabilities | \$
300 | | Member's equity | 35,857 | | Total liabilities and member's equity | \$
36,157 | The accompanying notes are an integral part of these financial statements . {6}------------------------------------------------ ## **REDROCK TRADING PARTNERS, LLC STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2019** | Net loss | \$ | (23,905) | |------------------------------|----|----------| | Total expenses | | 46,015 | | Other .expenses | | 33,035 | | Professional fees | | 9,650 | | Regulatory fees and expenses | | 3,330 | | EXPENSES | | | | | | | | Total revenues | | 22,110 | | Interest income | | 19 | | Fees | s | 22,091 | | REVENUES | | | The accompanying notes are an integral part of these financial statements. {7}------------------------------------------------ ## **REDROCK TRADING PARTNERS, LLC STATEMENT OF CHANGES IN MEMBER'S EQUITY YEAR ENDED DECEMBER 31, 2019** | | Total
member's
equity | | |----------------------|-----------------------------|----------| | JANUARY 1, 2019 | \$ | 38,719 | | Net loss | | {23,905) | | Member contributions | | 21,043 | | DECEMBER 31, 2019 | \$ | 35,857 | The accompanying notes are an integral part of these financial statements. {8}------------------------------------------------ ## **REDROCK TRADING PARTNERS, LLC STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2019** | OPERATING ACTIVITIES | | | |-------------------------------------------------|----|----------| | Net loss | s | (23,905) | | Adjustments to reconcile net loss to net cash | | | | used by operating activities: | | | | Net change in operating assets and liabilities: | | | | Commissions receivable | | (6,459) | | Net cash used by operating activities | | (30,364) | | FINANCING ACTIVITIES
Capital contributions | | 21,043 | | Net cash used by financing activities | | 21,043 | | CASH, BEGINNING OF YEAR | | 31,366 | | CASH, END OF YEAR | \$ | 22,045 | The accompanying notes are an integral part of these financial statements. {9}------------------------------------------------ ## REDROCK TRADING PARTNERS.LLC ## NOTESTO FINANCIAL STATEMENTS ## Note 1 Nature of Business and Summary of Significant Accounting Policies #### Nature of Business Redrock Trading Partners, LLC was formed on May 24. 2004 in the State of Arizona as a Limited Liability Corporation (LLC). The LLC was re-domiciled in Georgia on August 12. 2006. The Company is a registered broker-dealer under the provisions of the Securities Exchange Act of 1934. The Company began operations as a broker-dealer in April 2005. The Company provides services on behalf of clients for the purchase and/or sale of securities and private placements. #### 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. #### Cash and Cash Equivalents The Company considers all highly liquid debt instruments with a maturity of 90 days or less at the time of purchase to be cash equivalents. #### Revenue Recrgnition The Company receives revenue for private placement fees and other miscellaneous services Revenue is recognized when the services for the transactions are completed under the terms of each engagement and when collection is reasonably assured. #### Income Tuxes The Company is recognized as a partnership for income tax purposes under the Internal Revenue Code for Limited Liability Companies. As a result, income and losses of the Company are passed through to the members for income tax reporting purposes. Accordingly, no provision has been made for federal or state income taxes. The tax returns of the past three years have not been audited. and could be subject to audit. ### Fuir Value of Financial Instruments The Company's financial assets and liabilities are reported in the station at market or fair value or at carrying amounts of approximate current fair value. Financial instruments consist principally of cash and payables. This information is an integral part of the accompanying financial statements {10}------------------------------------------------ ## REDROCK TRADING PARTNERS.LLC ## Note I Nature of Business and Summary of Significant Accounting Policies (Continued) ## Fair Value of Financial Instruments (continued) FASB ASC 820 defines fair value, establishes a framework for value, and establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market. the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by FASB ASC 820, are used to measure fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: - · Level I inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company has the ability to access. - · Level 2 inputs are items (other than quoted prices included within Level 1) that are observable for the asset or liability, either directly or indirectly. - · Level 3 are unobservable inputs for the asset or liability and rely on management's own assumptions about the market participants would use in pricing the asset or liability. The carrying amounts of cash and cash equivalents, accounts payable, and accrued expenses, approximate fair value given their short-term nature. > Note 2 Concentrations of Credit Risk The Company maintains its cash in bank deposit accounts which at times. may exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to \$250,000. At December 31, 2019. the Company had no cash in excess of the FDIC insured limits. The Company has not experienced any losses in such accounts. | Note 3 | |--------------------------| | | | Net Capital Requirements | | | | | The Company, as a registered broker-dealer, is subject to the Securities and Exchange Commission Uniform Net Capital Rule (Rule 15c3-1). Rule 15c3 I requires the maintenance of minimum net capital of \$5.000, as defined, and requires thataggregate indebtedness.as defined, shall notexceed 15 times net capital. At December 31, 2019, the Company had net capital. as defined. of \$21.745. which exceeded the required net capital of \$5,000 by \$16.745. At December 31, 2019.the Company had a ratio of aggregate indebtedness to net capital less than 0.01 to 1. | Note 4 | |---------------| | | | Fidelity Bond | As a FINRA member, the Company is required to maintain minimum fidelity bond coverage of \$100.000. The Company possessed adequate fidelity bond coverage covering the policy year Feb. 16 2019 to Feb. 16 2020. {11}------------------------------------------------ ## REDROCK TRADING PARTNERS.LLC | Note 5 | | |-------------------|--| | Subsequent Events | | | | | Management has evaluated subsequent events through the financial statements were available to be issued and is unavare of any events requiring recognition or disclosure in the financial statements or notes thereto. {12}------------------------------------------------ ## **REDROCK TRADING PARTNERS, LLC** ## **Schedule** I - **Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission YEAR ENDED DECEMBER 31, 2019** | Computation of Net Capital | | |-------------------------------------------------------------------------------------------------------------|--------------| | Total ownership equity from statement of financial condition | \$
35,857 | | Deduct ownership equity not allowable for net capital | | | Total ownership equity qualified for net capital | 35,857 | | Liabilities subordinated to claims of general creditors | | | Total nonallowable assets (Central Registration Depository and Prepaid Expenses) | (14,112) | | Haircuts on Securities (15C3-l(F) - Short Term Certificate of Deposit) | | | Net capital | \$
21,745 | | | | | Computation of Net Capital Requirement | | | (A) Minimum net capital requirement (6 2/3% of total aggregate indebtedness) | \$
20 | | (B) Minimum dollar net capital requirement of reporting broker dealer and minimum net capital | 5,000 | | requirements of subsidiaries | | | Net capital requirement {greater of A or B above) | 5,000 | | Excess net capital | 16,745 | | Net capital less greater of 10% of total aggregate indebtedness or 120% of minimum net capital
{\$5,000) | \$
21,745 | | | | | | | | Computation of Aggregate Indebtedness | | | Total aggregate indebtedness (Accounts payable) | \$
300 | | Percentage of aggregate indebtedness to net capital | 1% | **Note: There are no significant differences between the above computation and the Company's corresponding unaudited Part** II **of Fonn X-17A-5 as of December 31, 2019.** {13}------------------------------------------------ ## **(O; elliott davis** **Report of Independent Registered Public Accounting Firm** To the Board of Directors Redrock Trading Partners, LLC Augusta, Georgia We have reviewed management's statements, included in the accompanying Exemption Report, ~n which (a) Redrock Trading Partners, LLC (the "Company") identified the following provisions of 17 C.F.R. § 240.15c3-3(k) under which the Company claimed an exemption from 17 C.F.R. § 240.15c3-3 based on section (k)(2)(i) (the "exemption provisions") and (b) the Company stated that the Company 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. Our 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, we do not express such an opinion. Based on our review, we are 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)(i) of 17 C.F.R. § 240.15c3-3. Raleigh, North Carolina February 27, 2020 elliottdavis.com {14}------------------------------------------------ ![](_page_14_Picture_0.jpeg) #### **Redrock Trading Partner, LLC's Exemption Report** Redrock Trading Partners, LLC (the "Company") is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R. §240.17a-5, "Reports to be made by certain brokers and dealers"). This Exemption Report was prepared as required by 17 C.F.R. § 240.17a-S(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. § 240.1Sc3-3 under the following provisions of 17 C.F.R. § 240.15c3-3 (k): *The provisions of this section shall not be applicable to a broker or dealer:* (i) *Who carries no margin accounts, promptly transmits all customer funds and delivers all securities received in connection with its activities as a broker or dealer, does not otherwise hold funds or securities for, or owe money or securities to, customers and effectuates all financial transactions between the broker or dealer and its customers through one or more bank accounts, each to be designated as I/Special Account for the Exclusive Benefit of Customers of Redrock Trading Partners".* (2) The Company met the identified exemption provisions in 17 C.F.R. § 240.1Sc3-3(k) throughout the most recent fiscal year without exception. Redrock Trading Partners, LLC I, Thane Plummer, swear (or affirm) that, to my best knowledge and belief, this Exemption Report is true and correct. ~~ Thane Plummer Title: Managing Director Date: February 18, 2020 2605 Walton Way Augusta, GA 30904 Phone (706) 364-2567 Member FINRA Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.