# CBOE FIXED INCOME MARKETS, LLC X-17A-5 (2023-02-23) — Broker-dealer annual report - Company: CBOE FIXED INCOME MARKETS, LLC - Form: X-17A-5 - Filed: 2023-02-23 - Period: 2022-12-31 - Accession: 0001368727-23-000002 - CIK: 1871012 - File #: 8-70752 - Type: Broker-dealer - Material weakness: No - Auditor: KPMG LLP - Auditor location: Kansas City, MO - Contact: Casie Haris - Phone: 816-721-5734 - Email: awilkinson@cboe.com - Website: cboe.com - Signed by: Allen Wilkinson (Vice President) Original filing: https://www.sec.gov/Archives/edgar/data/1871012/000136872723000002/CFIM_SEC_Public_2022.pdf --- {0}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OMB APPROVAL OMB Number: 3235-0123 Expires: Oct. 31, 2023 Estimated average burden hours per response: 12 sec file number 8-70752 # ANNUAL REPORTS FORM X-17A-5 PART III FACING PAGE Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 AND ENDING\_12/31/2022 filing for the period beginning \_01/01/2022 MM/DD/YY MM/DD/YY A. REGISTRANT IDENTIFICATION # NAME OF FIRM: Cboe Fixed Income Markets, LLC TYPE OF REGISTRANT (check all applicable boxes): Broker-dealer □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) # 17 STATE STREET, 31ST FLOOR | | (No. and Street) | | | | |---------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------|--------------------------------------------|--| | NEW YORK | NY | | 10004 | | | (City) | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | ALLEN WILKINSON | (913)205-4512 | | awilkinson@cboe.com | | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
KPMG LLP | (Name - if individual, state last, first, and middle name) | | | | | 1000 Walnut St Suite 1100 Kansas City | | MO | 64106 | | | (Address) | (City) | (State) | (Zip Code) | | | 10/20/2003 | | PCAOB ID#185 | | | | (Date of Registration with PCAOB)(if applicable) | | | (PCAOB Registration Number, if applicable) | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | \* Claims for exemption from the requirement that the annual 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-5(e)(1)(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 OMB control number. {1}------------------------------------------------ #### OATH OR AFFIRMATION \_\_\_ swear (or affirm) that, to the best of my knowledge and belief, the | financial report pertaining to the firm of Cboe Fixed Income Markets, LLC | | as of | |----------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------|-------| | 12/31 | , 2 022 , is true and correct. I further swear (or affirm) that neither the company nor any | | | as that of a customer.
NOTARY PUBLIC - State of Kansas | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | | Colleen Miller
My Appt. Expires O2/ 04/ | Signature:
Title:
Vice President | | | Notary Public | | | | This filing** contains (check all applicable boxes):
(a) Statement of financial condition | | | - □ (b) Notes to consolidated statement of financial condition. - □ (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) Statement of cash flows. - □ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - □ {f) Statement of changes in liabilities subordinated to claims of creditors. - (g) Notes to consolidated financial statements. - □ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2; - □ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - □ (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. - □ {|) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - □ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. - □ (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 - □ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capible 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 worth oneer 27 GFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. - □ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - | - □ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - □ (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. - (u) Independent public accountant's report based on an examination of the financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - □ (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. - CTR 240.176 5 OF 27 CFR 216.266 7 63 opphobated □ (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. - ch it 240.100 7, as oppliedier (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - [] {y} Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, on a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). - □ (z) Other: \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17o-5(e/(3) or 17 CFR 240.18c-7(d)(2), os applicable. #### ]. Allen wilkinson {2}------------------------------------------------ ## Cboe Fixed Income Markets, LLC Financial Statement (With Report of Independent Registered Public Accounting Firm Thereon) As of December 31, 2022 {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) KPMG LLP Suite 1100 1000 Walnut Street Kansas City, MO 64106-2162 ## Report of Independent Registered Public Accounting Firm To the Member and the Board of Directors Cboe Fixed Income Markets, LLC: #### Opinion on the Financial Statement We have audited the accompanying statement of financial condition of Cboe Fixed Income Markets, LLC (the Company) as of December 31, 2022, and the related notes (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, 2022, in conformity with U.S. generally accepted accounting principles. #### Basis for Opinion This financial statement is the responsibility of the Company's management. Our responsibility is to express an opinion on this 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 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. 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. February 22, 2023 We have served as the Company's auditor since 2022. Kansas City, Missouri {4}------------------------------------------------ #### Cboe Fixed Income Markets, LLC #### Assets | Cboe Fixed Income Markets, LLC | | |-------------------------------------------------------|-----------------| | Statement of Financial Condition
December 31, 2022 | | | | | | Assets | | | Cash | \$
7,811,914 | | Equipment, net | 314,566 | | Other assets | 140,710 | | Total assets | \$
8,267,190 | | Liabilities and Member's Equity | | | Liabilities: | | | Accounts payable and accrued liabilities | \$
5,121 | | Payable to affiliate | 3,915,371 | | Total liabilities | 3,920,492 | | Member's equity: | | | Total member's equity | 4,346,698 | | Total liabilities and member's equity | \$
8,267,190 | | See accompanying notes to financial statements. | | | | | {5}------------------------------------------------ ## Cboe Fixed Income Markets, LLC Notes to Financial Statements As of December 31, 2022 (1) Nature of Business Cboe Fixed Income Markets, LLC (the Company) was formed as a Delaware Limited Liability Company on May 25, 2021. On July 6, 2022, the Company registered as a broker-dealer with the Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA). The Company is an indirect, wholly-owned subsidiary of Cboe Global Markets, Inc. (the Parent). The primary business activity of the Company is to develop and operate a U.S. Treasury securities trading system for its participants, each of which must be a broker-dealer registered with the SEC pursuant to Section 15 of the Exchange Act. The Company operates under a (k)(2)(ii) exemption from Rule 15c3-3 and clears all customer transactions through an unaffiliated broker-dealer on a fully-disclosed basis. The Company did not commence trading operations during the year ended December 31, 2022. #### (2) Summary of Significant Accounting Policies #### (a) Principles of Accounting The financial statement is presented in conformity with generally accepted accounting principles in the United States (GAAP) as established by the Financial Accounting Standards Board (FASB). References to GAAP in these footnotes are to the FASB Accounting Standards Codification (ASC or Codification). #### (b) Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as disclosure of the amounts of contingent assets and liabilities at the date of the financial statement. Actual results could differ significantly from those estimates. ### (c) Cash The Company maintains cash at a financial institution that, at times, may be in excess of the federal insurance limits. The Company's management regularly monitors the institutions and believes that the potential for future loss is remote. Upon commencement of trading operations, the Company will be required to maintain a deposit of \$250,000 at the unaffiliated brokerdealer used to clear customer transactions. #### (d) Income Taxes The Company is included in the consolidated federal income tax return filed by the Parent. As the Company is a legal entity that is not subject to tax, there is no allocation of the Parent's current and deferred tax expense in the Company's financial statements. In accordance with Accounting Standards Update 2019-12, Simplifying the Accounting for Income Taxes, because the Company is a legal entity that is not itself subject to tax, no allocation of current and deferred tax expense from the Parent is required. ### (e) Equipment, Net Equipment, net is stated at cost less accumulated depreciation. The equipment consists of network, server, and storage equipment, as well as data centers and the equipment has been inserviced as the Company used the equipment while testing the trading system. {6}------------------------------------------------ # Cboe Fixed Income Markets, LLC Notes to Financial Statements As of December 31, 2022 (f) Other assets Other assets consist of prepaid expenses. #### (3) Net Capital Requirements The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital. The SEC's requirement also provides that equity capital may not be withdrawn or cash dividends paid if certain minimum net capital requirements are not met. The Company computes its net capital requirements under the basic method provided for in SEC Rule 15c3-1. As a broker-dealer in its first 12 months of operations, the Company was required to maintain net capital equal to the greater of 12.5% of aggregate indebtedness items, as defined, or \$5,000. SEC Rule 15c3-1 requires the Company to maintain net capital equal to the greater of 6-2/3% of aggregate indebtedness items, as defined, or \$100,000, starting with periods after July 6, 2023. At December 31, 2022, the Company had net capital of \$3,891,422, which was \$3,401,360 in excess of its required net capital of \$490,062. The ratio of aggregate indebtedness to net capital was 1.01 to 1. #### (4) Related Party Transactions The Company is a party to a Master Intercompany Services & License Agreement (the Agreement) with the Parent. Pursuant to this Agreement, certain affiliates of the Parent provide shared services to the Company such as accounting and payroll. Costs for services provided and other expenses, such as technology costs, professional fees, and facility costs are allocated to the Company from the other affiliates in accordance with the Agreement. The payable to affiliate was \$3,915,371 as of December 31, 2022. The Company settles all activity with the other affiliates through the Parent annually or as needed. #### (5) Commitments and Contingencies As a SEC registered broker-dealer and member of FINRA, the Company is subject to examinations and inspections by the SEC and FINRA. Additionally, from time to time the Company may be involved in various legal proceedings arising in the ordinary course of business. The Company does not believe that the outcome of any of these examinations, inspections, or other legal proceedings will have a material impact on the financial statement; however, litigation is subject to many uncertainties, and the outcome of individual litigated matters is not predictable with assurance. After trading commences, the Company may be exposed to counterparty credit risk in the event that the Company's fully disclosed clearing broker, Mirae Asset Securities (USA) Inc. (Mirae), fails to perform any of its contractual obligations to the Company. Mirae will clear all U.S. government securities transactions executed on the Company's platform. Mirae, a SEC-registered broker-dealer and a member of DTCC's Fixed Income Clearing Corporation (FICC) Government Securities Division (GSD), will act as the Company's fully disclosed counterparty to both Participants (buyer and seller) on any matched orders on the system (resulting in two offsetting trades for Mirae). All Participants of the platform are required to be SEC-registered broker-dealers and members of FICC's GSD. The Company believes that such potential counterparty credit risk exposure is remote; however, such risk is possible. {7}------------------------------------------------ #### Cboe Fixed Income Markets, LLC | Cboe Fixed Income Markets, LLC
Notes to Financial Statements
As of December 31, 2022 | | |--------------------------------------------------------------------------------------------|-------------------------| | (6)
Equipment,
net | | | Equipment consisted of the following as of December 31, 2022: | | | | December
31,
2022 | | Equipment | 582,632
\$ | | Less accumulated depreciation | (268,066) | | Total Equipment, net | 314,566
\$ | #### (7) Subsequent Events The Company performed an evaluation of events that have occurred subsequent to December 31, 2022 through February 22, 2023, which is the date the financial statement was issued. There have been no subsequent events that have occurred during such period that would require disclosure in the financial statement or would be required to be recognized in the financial statement as of December 31, 2022. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.