Full text of TTBD, LLC's X-17A-5 filed 2019-02-27 (period 2018-12-31). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ # **TTBD, LLC** ### **NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2018** #### **1. GENERAL** **Basis of Presentation** -The accompanying financial statements ofTTBD, LLC (TTBD or the "Company"), a limited liability company and securities broker-dealer, have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). TTBD is <sup>a</sup> wholly owned subsidiary of TT Securities Group, LLC (TTSG). TTSG is a wholly owned subsidiary of Trading Technologies International, Inc. (TTI). **Nature of Operations** -The Company, a Delaware corporation, is a broker-dealer registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority, Inc. (FINRA). The Company licenses software and patents on a transactional fee basis for customers trading securities. FINRA compliance and SEC regulations require that a broker-dealer be registered when fee-based structures are in place for trading securities on a transactional basis. The customers of the Company are primarily proprietary trading firms, investment banking firms, commercial banks, and derivative exchanges. These customers are located in the United States of America, Europe, and India. Four of the Company's customers account for 62% of total revenue. #### **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** **Revenue Recognition** - Revenue from software licenses is earned on a transactional basis in the month the software is used. A receivable is established for fees earned but not yet collected. **General and Administrative Expenses** - General and administrative expenses reflect costs allocated to the Company from TTI or other affiliates of TTI for providing administrative activities to the Company. Refer to Note 5 Related Party Transactions. **Regulatory Fees and Other Expenses** - Regulatory fees and other expenses are expensed as incurred and reflect FINRA licensing fees, state filing fees, commission expenses, and other costs incurred in the normal course of business. **Software Licensing Distribution Expense** - Software licensing distribution expense pertain to TTBD's non-exclusive and non-transferable license of certain software and patents from TTL Refer to Note 5 Related Party Transactions. **Use of Estimates** - The preparation of the financial statements in conformity with GAAP requires management to make estimates and a…Read the full text as markdown