# REDROCK TRADING PARTNERS, LLC X-17A-5 (2021-03-30) — Broker-dealer annual report - Company: REDROCK TRADING PARTNERS, LLC - Form: X-17A-5 - Filed: 2021-03-30 - Period: 2020-12-31 - Accession: 0001306928-21-000001 - CIK: 1306928 - File #: 8-66707 - Material weakness: No - Auditor: Elliott Davis Decosimo LLC/PLLC - Auditor location: Greenville, SC - Contact: Thane Plummer - Phone: 520-405-2277 - Signed by: Thane Plummer (Managing Director) Original filing: https://www.sec.gov/Archives/edgar/data/1306928/000130692821000001/RTPAudit2020.pdf --- {0}------------------------------------------------ **UNITEDSTATES SECURITIES AND EXCHANGECOMMISSION Washington, D.C. 20549** 0MB APPROVAL 0MB Number: 3235-0123 Expires: October 31, 2023 Estimated average burden hours per response ... . .. 12.00 > SEC FILE NUMBER **B-66707** # **ANNUAL AUDITED REPORT FORM X-17A-5 PART Ill** **FACING PACE** **Information Required of Brokers and Dealers Pursuant to Section 17 of the Securities Exchange Act of 1934 and Rule 17a-5 Thereunder** | _ AND ENDING_ 1 2__/3_1_/_2_0_2_0 _
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REPORT FOR TllE PERIOD 11F.GINNING_0_1_/0_ 1_/_2_0_2_0 _ | | | |-------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | M M/0 D/ YY | | M M!DD/YY | | | | | | | | OFFICIAL USE ONLY | | ADDRESS OF PRINCIPAL PL/\CL OF BUSINESS: (Do not use P.O. Box No.) | | FIRM I.D. NO. | | | | | | ( No. a nd Street) | | 30904 | | (State) | | (Zi p Code) | | | | (Arca Code - Te lephone Number) | | | | | | | | | | | | | | | | | | | | 29606 | | (City ) | (State) | (hr Code) | | | | | | | | | | | | | | | | | | | | | | | | | | | __
2605 Walton Way, Augusta, GA
Elliott Davis Decosimo LLC/PLLC
(Name
Greenville | A. REGISTRANT IDENTlFJCA TION
NAMf-: oF BROKER-DEALER: Redrock Trading Partners, LLC
NA ME /\ND TELEP! IONE NUMBt.:R OF PERSON TO CONTACT IN REGARD TO THIS REPORT
B. ACCOUNT ANT IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in th is Rc pori*
if individual. stare lasr. first. middle name)
SC
Accountant not resident in United States or any of its possessions.
FOR OFFICIAL USE ONLY | *\*Claimsj **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 valid 0MB control number.** SEC 1410 (11-05) {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | 1. Thane Plummer | | __
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. are true and correct. I further swear (or affirm) that | | | | neither the company nor any partner, proprietor, principal officer or director has any proprietary interest in any account | | classi liul solely as that of a customer. except as fol lows: | | | | | | | | | | | | | | ~~ | | | ~,,
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- | | | This report** contains (check all applicable boxes): | ''''"'"''' | | | El (a) Facing Page. | | | | E] (b) Statement of Financial Condition. | | | | | | 0 (c) Statement or Income (Loss) or, if there is other comprehensive income in the period(s) presented, a Statement | | or Comprehensive Income (as defined in §2 l 0. | | 1-02 of Regulation S-X). | | O ( d) Statement of Changes in Financial Condition.
E] (e) Statement or Changes in Stockholders· Equity o | | r Partners· or Sole Proprietors· Capitai. | | D (t) Statement of Changes in Liabilities Subordinated to Claims or Creditors. | | | | (g) Computation of Net Capita!. | | | | | (h) Computation tor Determination or Reserve Requirements Pursuant to Ruic 15c3-3. | | | ( i)
~ | Information Relating to the Possession or Control Requirements Under Ruic l 5c3-3. | | | | Computation for Determination of the Reserve Requirements Under Exhibi | D (i) A Reconciliation, including appropriate explanation or the Computation of Net Capital Under Ruic I 5c3-
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t A or Ruic I 5c3-3. | | | | 0 (k) A Reconciliation between the auditcd and unaudited Statements of Financial Condition with respect to methods of | | consolidation . | | | | E] (I) An Oath or Al'lirmation. | | | | D (m) A COfl) of the SIPC Supplemental Report. | | | | | | D (n) /\ report describing any material inadequacies found to exist or found to have exislcd since the date of the previous audit. | | | | | \*\* *For conditions cif con/idential treatment of certain ponions of this filing. see section 240. l7a-5(e)(3).* {2}------------------------------------------------ ![](_page_2_Picture_0.jpeg) #### **Report of Independent Registered Public Accounting Firm** To the Board of Directors Redrock Trading Partners, LLC Augusta, Georgia #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Redrock Trading Partners, LLC (the Company) as of December 31, 2020, and the related notes to the financial statement (collectively, 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, 2020, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This 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 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. 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 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. We have served as the Company's auditor since 2013. Raleigh, North Carolina March 26, 2021 **elliottdavis.com** {3}------------------------------------------------ #### REDROCK TRADING PARTNERS, LLC FINANCIAL STATEMENTS DECEMBER 31, 2020 {4}------------------------------------------------ ### *REDROCK TRADING PARTNERS, LLC STATEMENT OF FINANCIAL CONDITION AS OF DECEMBER 31, 2020* #### *ASSETS* | Cash and cash equivlaents
Commissions receivable
Prepaid Insurance
Total assets | \$
\$ | 24,907
10,887
320
36,114 | |------------------------------------------------------------------------------------------|----------|-----------------------------------| | LIABILITIES AND MEMBER'S EQUITY | | | | Liabilities | \$ | - | | Member's equity | | 36,114 | | Total liabilities and member's equity | \$ | 36,114 | {5}------------------------------------------------ ### *REDROCK TRADING PARTNERS, LLC STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2020* | Net profit | \$ | 257 | |------------------------------|----|--------| | Total expenses | | 18,953 | | Other expenses | | 6,727 | | Professional fees | | 10,125 | | Regulatory fees and expenses | | 2,101 | | EXPENSES | | | | | | | | Fees | \$ | 19,210 | | REVENUES | | | {6}------------------------------------------------ ## *REDROCK TRADING PARTNERS, LLC STATEMENT OF CHANGES IN MEMBER'S EQUITY YEAR ENDED DECEMBER 31, 2020* | | | Total
member's
equity | | |-------------------|--|-----------------------------|--------| | JANUARY 1, 2020 | | \$ | 35,857 | | Net profit | | | 257 | | DECEMBER 31, 2020 | | \$ | 36,114 | {7}------------------------------------------------ ### *REDROCK TRADING PARTNERS, LLC STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2020* | CASH, END OF YEAR | \$
24,907 | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------| | CASH, BEGINNING OF YEAR | 22,045 | | Net cash provided by operating activities | 2,862 | | Adjustments to reconcile net profit to net cash
provided by operating activities:
Changes in operating assets and liabilities:
Commissions receivable
Prepaid insurance
Accounts payable | 3,225
(320)
(300) | | OPERATING ACTIVITIES
Net profit | \$
257 | {8}------------------------------------------------ # 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 date of 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 Recognition* The Company receives revenue for private placement fees and other miscellaneous services. Revenue is recognized when the performance obligation for the transactions are completed under the terms of each engagement and when collection is reasonably assured. During the year ending December 31, 2020, the Company earned all of its fees from one client. The only performance obligation within this agreement is that the customer remains invested in contracted placement. This performance obligation is deemed to be satisfied over time and the fees are recorded quarterly when collection is reasonably assured. ### *Income Taxes* The Company is recognized as a partnership for income tax purposes under the provisions of 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. # *Fair Value of Financial Instruments* The Company's financial assets and liabilities are reported in the statement of financial condition at market or fair value or at carrying amounts of approximate current fair value. Financial instruments consist principally of cash and payables. {9}------------------------------------------------ # REDROCK TRADING PARTNERS,LLC # 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, 2020, the Company had no cash in excess of the FDIC insured limits. During the year ending December 31, 2020, one customer accounted for 100% of the company's revenues. > 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-l). Rule 15c3 l requires the maintenance of minimum net capital of \$5,000, as defined, and requires that aggregate indebtedness, as defined, shall not exceed 15 times net capital. At December 31, 2020, the Company had net capital, as defined, of \$24,907, which exceeded the required net capital of \$5,000 by \$19,907. At December 31, 2020, 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 coverage was properly maintained from January 1, 2020 through December 31, 2020. > Note 5 Subsequent Events Management has evaluated subsequent events through the date on which the financial statements were available to be issued and is unaware of any events requiring recognition or disclosure in the financial statements or notes thereto. Note 6 Novel Coronavirus The 2019 novel coronavirus (or "COVID-19") has adversely affected, and may continue to adversely affect economic activity globally, nationally and locally. It is unknown the extent to which COVID-19 may spread, may have a destabilizing effect on financial and economic activity and may increasingly have the potential to negatively impact the Company's and its customers' costs, demand for the Company's services, and the U.S. economy. These conditions could adversely affect the Company's business. The extent of the potential adverse impact, if any, of the COVID-19 outbreak on the Company cannot be predicted at this time. {10}------------------------------------------------ # *REDROCK TRADING PARTNERS, LLC* # *Schedule I - Computation of Net Capital Under Rule 15c3-1 of the Securities and Exchange Commission AS OF DECEMBER 31, 2020* | Computation of Net Capital
Total member's equity from statement of financial condition
Deduct member's equity not allowable for net capital | \$
36,114
- | |---------------------------------------------------------------------------------------------------------------------------------------------------|-------------------| | Total member's equity qualified for net capital | 36,114 | | Liabilities subordinated to claims of general creditors | - | | Total nonallowable assets (Commissions receivable and Prepaid Insurance)
Haircuts on Securities | (11,207)
- | | Net capital | \$
24,907 | | Computation of Net Capital Requirement | | | (A) Minimum net capital requirement (6 2/3% of total aggregate indebtedness) | \$
- | | (B) Minimum dollar net capital requirement of reporting broker dealer and minimum net capital
requirements of subsidiaries | 5,000 | | Net capital requirement (greater of A or B above) | 5,000 | | Excess net capital | 19,907 | | Net capital less greater of 10% of total aggregate indebtedness or 120% of minimum net capital
(\$5,000) | \$
18,907 | | | | | Computation of Aggregate Indebtedness | | | Total aggregate indebtedness
Percentage of aggregate indebtedness to net capital | \$
-
0% | Note: There are no significant differences between the above computation and the Company's corresponding unaudited Part II of Form X-17A-5 as of December 31, 2020. {11}------------------------------------------------ ![](_page_11_Picture_0.jpeg) ### **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, in which (a) Redrock Trading Partners, LLC (the Company) identified the following provisions of 17 C.F.R. § 240.15c3Ͳ3(k) under which The Company claimed an exemption from 17 C.F.R. § 240.15c3Ͳ3: Paragraph (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. § 240.15c3Ͳ3. Raleigh, North Carolina March 26, 2021 {12}------------------------------------------------ ![](_page_12_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-5(d)(1) 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. § 240.15c3-3 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 "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. § 240.15c3-3(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, 2021 Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.