# CLEARVIEW TRADING ADVISORS, INC. X-17A-5 (2021-09-29) — Broker-dealer annual report - Company: CLEARVIEW TRADING ADVISORS, INC. - Form: X-17A-5 - Filed: 2021-09-29 - Period: 2021-06-30 - Accession: 0001383996-21-000002 - CIK: 1383996 - File #: 8-67501 - Material weakness: No - Auditor: Aprio, LLP - Auditor location: Atlanta, GA - Contact: Gregg Ettin - Phone: 646-747-5220 - Signed by: Gregg Ettin (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1383996/000138399621000002/CLVWPublic2021.pdf --- {0}------------------------------------------------ CLEARVIEW TRADING ADVISORS, INC. STATEMENT OF FINANCIAL CONDITION AS OF AND FOR THE YEAR ENDED JUNE 30, 2021 {1}------------------------------------------------ #### **Ul\lTED ST A TES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** | 0MB APPROVAL | | | |--------------------------|-------------------|--| | 0MB Number: | 3235-0123 | | | Expires: | October 31 , 2023 | | | ~stimated average burden | | | | Hours per response | 12.00 | | ## ANNUALAUDTTEDREPORT FORM X-17A-5 PART Ill | Hours per response | | 12.00 | |--------------------|-------|-----------------| | | | SEC FILE NUMBER | | 8- | 67501 | | #### **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 PER10D BEGINNING | --------
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A. REGISTRANT IDENTIFICATION | | | | | | | NAME OF BROKER-DEALER: | | | OFFICIAL USE ONLY | | | | Clearview Trading Advisors, Inc. | | | FIRM I.D. NO. | | | | ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.) | | | | | | | 10 Glenwood Road, Suite 904 | | | | | | | | (No. and Street) | | | | | | Tenafly | NJ | | 07670 | | | | (City) | (State) | | (Zip Code) | | | | NAME AND TELEPHONE NUMBER OF PERSON TO CONT ACT IN REGARD TO THIS REPORT | | | | | | | Gregg Ettin | | | 646-747-5220 | | | | | | | (Area Code - Tdephone :-lumber) | | | | | B. ACCOUNT ANT IDENTIFCA TION | | | | | | INDEPENDENT PUBLIC ACCOUNT ANT whose opinion is contained in this Report* | | | | | | | Aprio, L~P | | | | | | | (Name - ,f ,nJi~•tduul. state lust.fint, middlt> name) | | | | | | | Five Concourse Parkway, Suite 1000 | Atlanta | GA | 30328 | | | | (Address) | (City) | (State) | t Z1p Code1 | | | | CHECK ONE: | | | | | | | Certified Public Accountant
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Public Accountant | | | | | | | D
Accountant not resident in United States or any of its possessions. | | | | | | | FOR OFFICIAL USE ONLY | | | | | | | | | | | | | | | | | | | | | | | | | | | *\*Claims for exemption from /he req11iremen1* I *hat 1he annual rl'port hl' co1·ered hy tht' opinion of an indt>pendt>nl public* acco1111w111 *must he supported hy a s/a/emenl ojfacts and circ11111sta11ct'S relied on as the hasis fiir llw ext'mption. 5.,., Section l 40. l 7a-5ft>)f '})* > **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** {2}------------------------------------------------ ## **OATH OR AFFIRMATION** ## 1. Gregg **Ettin** , swear (or affinn) that, to the best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of # **\_C\_l\_ea\_r\_,\_'i\_e\_,v\_T\_r\_a\_d\_in\_g.;\_\_A\_d\_,\_'i\_so\_r\_s\_,\_I\_n\_c\_. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ ,as** of **June 30** , 20 **21**, 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 classified solely as that of a customer, except as follows: **CEO** Title This report\*\* contains (check all applicable boxes): - ~ (a) Facing page. - ~ (b) Statement of Financial Condition. - D (c) Statement of Income (Loss). - D (d) Statement of Changes in Financial Condition. - D (e) Statement of Changes in Stockholders' Equity or Partners' or Sole Proprietor's Capital. - D (f) Statement of Changes in Liabilities Subordinated to Claims of Creditors. - D (g) Computation of Net Capital. - D (h) Computation for Determination of Reserve Requirements Pursuant to Rule 15c3-3. - D ( i) Information Relating to the Possession or Control Requirements under Rule l 5c3-3. - 0 (j) A Reconciliation, including appropriate explanation, of the Computation of Net Capital Under Rule 15c3-l and the Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15c3-3. - D (k) A Reconciliation between the audited and unaudited statements of Financial Condition with respect to methods of consolidation. - ~ (I) An Oath or Affirmation. - D (m) A copy of the SIPC Supplemental Report. - D (n) A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit. *\*\*For condition.1· of confidential treatment vfcertain portions of this filing, see section 240. l 7u-5(e)(3).* {3}------------------------------------------------ ## Table of Contents | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | Statement of Financial Condition | 2 | | Notes to Financial Statement | 3-5 | {4}------------------------------------------------ ![](_page_4_Picture_1.jpeg) #### REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholder of Clearview Trading Advisors, Inc. #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Clearview Trading Advisors, Inc. as of June 30, 2021, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement LV presentV fairly, in all material respects, the financial position of Clearview Trading Advisors, Inc. as of June 30, 2021 in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** These financial statements are the responsibility of Clearview Trading Advisors, Inc.'s management. Our responsibility is to express an opinion on Clearview Trading Advisors, Inc'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 Clearview Trading Advisors, Inc. 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 LV 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. We have served as Clearview Trading Advisors, Inc.'s auditor since 2018. New York, New York September 28, 2021 {5}------------------------------------------------ ## STATEMENT OF FINANCIAL CONDITION JUNE 30, 2021 | ASSETS
Current assets | | |----------------------------------------------------|---------------| | Cash and cash equivalents | S
251,603 | | Prepaid expenses | 3,406 | | Total assets | 255,009
et | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | Current liabilities | | | Accounts payable and accrued expenses | ಕಾ
83,799 | | Stockholder's Equity | | | Common stock, no par value; 200 shares authorized; | | | 200 shares issued and outstanding | 12,500 | | Additional paid-in capital | 1,190,754 | | Accumulated deficit | (1,032,044) | | Total stockholder's equity | 171,210 | | Total liabilities and stockholder's equity | 255,009 | The accompanying notes are an integral part of this statement. {6}------------------------------------------------ Notes to the Financial Statements As of and for the Year Ended June 30, 2021 #### (1) **Organization and Nature of Business** Clearview Trading Advisors, Inc. (the "Company") is a C-Corporation incorporated in the state of New York on October 17, 2006. It is organized to be active in various aspects of the securities industry and is registered to be a broker-dealer with the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC). The Company is a non-clearing broker and does not handle any customer funds or securities. The Company was located in New York City through January 31, 2021. Effective that date, the Company moved its operations to Tenafly, New Jersey. Customers are located throughout the United States. The Company operates under the provisions of Paragraph (k)(2)(ii) of Rule 15c3-3 of the Securities and Exchange Commission and, accordingly, is exempt from the remaining provisions of that rule. Essentially, the requirements of Paragraph (k)(2)(ii) provide that the Company clears all transactions on behalf of customers on a fully disclosed basis with a clearing broker/dealer, and promptly transmits all customer funds and securities to the clearing broker/dealer. The clearing broker/dealer carries all of the accounts of the customers and maintains and preserves all related books and records as are customarily kept by a clearing broker/dealer. #### (2) **Summary of Significant Accounting Policies** #### **Significant Credit Risk and Estimates** The responsibility for processing customer activity rests with the Company's clearing firm, Merrill Lynch. The Company's clearing and execution agreement provides that the clearing firm's credit losses relating to unsecured margin accounts receivable of the Company's customers are charged back to the Company. In accordance with industry practice, Merrill Lynch records customer transactions on a settlement date basis, which is generally three business days after the trade date. Merrill Lynch is therefore exposed to risk of loss on these transactions in the event of the customer's inability to meet the terms of its contract, in which case Merrill Lynch may have to purchase or sell the underlying financial instruments at prevailing market prices in order to satisfy its customerrelated obligations. Any loss incurred by Merrill Lynch is charged back to the Company. The Company in conjunction with Merrill Lynch, controls off- balance- sheet risk by monitoring the market value and marking securities to market on a daily basis and by requiring adjustments of collateral levels. Merrill Lynch establishes margin requirements and overall credit limits for such activities and monitors compliance with the applicable limits and industry regulations on a daily basis. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management of the Company to use estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. There were no liabilities subordinated to claims of general creditors during the year ended June 30, 2021. #### **Cash and Cash Equivalents** The Company has defined cash and cash equivalents as highly liquid investments with original maturities of less than 90 days that are not held for sale in the ordinary course of business. Cash and cash equivalents include money market accounts. Financial instruments that potentially subject the Company to credit risk consist primarily of cash and cash equivalents and amounts due from broker dealers. The Company maintains cash and money market balances with commercial banks and other major institutions. At times, such amounts may exceed Federal Deposit Insurance Corporation limits. #### **Income Taxes** The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized with respect to the future tax consequences attributable to differences between the tax basis of assets and liabilities and their carrying amounts for financial statement purposes. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those {7}------------------------------------------------ Notes to the Financial Statements As of and for the Year Ended June 30, 2021 temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The Company recognizes and measures its unrecognized tax benefits in accordance with FASB ASC 740, Income Taxes. Under the guidance, the Company assesses the likelihood, based on technical merit, that the tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of the reporting period. The measurement of unrecognized tax benefits is adjusted when new information is available, or when an event occurs that requires a change. The Company recognizes the accrual of any interest and penalties to unrecognized tax benefits in income tax expense. #### **Fair Value of Financial Instruments** The Company's financial instruments, including cash, prepaid expenses and accounts payable and accrued expenses, are carried at cost, which approximates their fair value because of the short-term nature of these assets and liabilities. #### (3) **Revenue Recognition** The Company recognizes revenue to depict the transfer of promised services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those services. The guidance requires an entity to follow a five-step model to (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The Company acts as a placement agent which is compensated upon successful placement of the fund with the investor(s). The Company's compensation is typically a percentage of proceeds raised, as outlined within the executed agreement(s) with the investor(s). The company recognizes revenue upon successful execution of the private placement transaction. The Company believes that the performance obligation is satisfied at a point in time upon completion of the private placement transaction. #### (4) **Net Capital Requirements** The Company is subject to the SEC Uniform Net Capital Rule (Rule 15c-3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 (and that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1). At June 30, 2021 the Company had net capital of \$167,804, which was \$67,804 in excess of its required net capital of \$100,000. The Company had a percentage of aggregate indebtedness to net capital of 49.94% as of June 30, 2021. #### (5) **Operating Lease** The Company had an obligation as a lessee for office space which terminated effective January 31, 2021. The Company classified the lease as an operating lease. Rent expense charged to operations under this lease was \$64,442 through the termination date of the lease. Effective with the termination of its office lease, the Company moved its operations to the residence of its Chief Executive Officer and sole stockholder, without any charge for rent expense through the end of its fiscal year ending June 30, 2021. {8}------------------------------------------------ Notes to the Financial Statements As of and for the Year Ended June 30, 2021 #### (6) **Income Taxes** | The provision for income taxes for the year ended June 30, 2021 is as follows: | Current income tax expense | \$
- | |--------------------------------------------------------------------------------|----------------------------------|----------| | | Federal | - | | | State and local | 4,902 | | | Total current | 4,902 | | | Deferred income tax expense | | | | Federal | - | | | State and local | - | | | Total deferred | - | | | Total provision for income taxes | 4,902 \$ | Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities. The tax effects of the temporary differences that give rise to the significant portions of the deferred income tax assets as of June 30, 2021 are a Net operating loss (NOL) carryforward of approximately \$918,000. This NOL gives rise to a deferred tax asset of approximately \$275,000. The deferred tax asset is fully offset by a valuation allowance in the same amount, which results in no deferred tax asset being reflected on the Statement of Financial Condition. The utilization of the NOL will reduce future year's Provisions for income taxes. If not fully utilized, approximately \$738,000 of the NOL will expire by June 30, 2038 and approximately \$180,000 will be available indefinitely. #### (7) **Subsequent events** The Company has performed an evaluation of subsequent events that have occurred subsequent to June 30, 2021, and through September 21, 2021 the date of the filing of this report. There have been no material subsequent events that occurred during such period that would require disclosure in this report or would be required to be recognized in the financial statements as of June 30, 2021. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.