# OLD MISSION CAPITAL, LLC X-17A-5 (2024-02-29) — Broker-dealer annual report - Company: OLD MISSION CAPITAL, LLC - Form: X-17A-5 - Filed: 2024-02-29 - Period: 2023-12-31 - Accession: 0001455915-24-000002 - CIK: 1431146 - File #: 8-67867 - Type: Broker-dealer - Material weakness: No - Auditor: RSM US LLP - Auditor location: CHICAGO, IL - Contact: Erica Marquez Avitia - Phone: 3122603044 - Email: accounting@oldmissioncapital.com - Website: oldmissioncapital.com - Signed by: ERICA MARQUEZ AVITIA (COO) Original filing: https://www.sec.gov/Archives/edgar/data/1431146/000145591524000002/OMC23P2.pdf --- {0}------------------------------------------------ Statement of Financial Condition December 31, 2023 Filed as PUBLIC information pursuant to Rule 17-a5(d) under the Securities Exchange Act of 1934. {1}------------------------------------------------ | | | SECURITIES AND EXCHANGE COMMISSION | OMB APPROVAL
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12 | | | | | |-------------------------|------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|--|--|--| | | | ANNUAL REPORTS | | SEC FILE MUMBER | | | | | | | FORM X-17A-5 | | 8-67867 | | | | | | | PART II | | | | | | | | | FACING PAGE
Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | | | | | FILING FOR THE PERIOD BEGINNING 01/01/2023 | | | AND ENDING 12/31/2023 | | | | | | | MM/DD/YY | | MM/DD/YY | | | | | | | A. REGISTRANT IDENTIFICATION | | | | | | | | NAME OF FIRM: Old Mission Capital LLC | | | | | | | | | Check here if respondent is also an OTC derivatives dealer | Broker-dealer Security-based swap dealer Major security-based swap participant
ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) | | | | | | | | 1 N. Dearborn, 8th Floor | (No. and Street) | | | | | | | Chicago | | IL | | 60602 | | | | | | (City) | (State) | | (Zip Code) | | | | | | | | | | | | | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | | | | Erica Marquez Avitia 312-260-3044 | | accounting@oldmissioncapital.com | | | | | (Name) | | (Area Code - Telephone Number) | | (Email Address) | | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | | | RSM US LLP | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing * | | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | | | | | 30 South Wacker Drive, Suite 3300 Chicago | 11 | 60606 | | | | | | | (City) | (State) | (Zip Code) | | | | | | | | | | | | | | | | | 49 | | | | | | (Address)
09/24/2003 | (Date of Registration with PCAOB)(if applicable) | FOR OFFICIAL USE ONLY | | (PCAOB Registration Number, 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. {2}------------------------------------------------ # OATH OR AFFIRMATION | | financial report pertaining to the firm of Old Mission Capital LLC
as of as as of
12/31
2 023 is true and correct. I further swear (or affirm) that neither the company nor any | | | | | | | |---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|--|--| | | partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely | | | | | | | | | as that of a customer. | | | | | | | | | STATE OF ILLINOIS | | | | | | | | | COUNTY OF
COOK
Signature: | | | | | | | | | SWORN TO AND SUBSCAIGED BEFORE ME THIS | | | | | | | | | FEBRUARY 2024
Title: | | | | | | | | | 287 DAY
KEVIN & LOOBEOO | | | | | | | | | OFFICIAL SEAL
Notary Public, State of Illinois
Notary Public
My Commission Expires
February 23, 2025 | | | | | | | | | 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 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. | | | | | | | | | [] 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. | | | | | | | | | [1) 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. | | | | | | | | | Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible 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
CFR 240.15c3-3 or 17 CFR 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. | | | | | | | | | (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.18a-7, as applicable. | | | | | | | | | [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. | | | | | | | | | [ [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. | | | | | | | | | [x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.17a-12, | | | | | | | | | as applicable. | | | | | | | | | [ {y) Report describing any material inadequacies found to have existed since the date of the previous audit, or | | | | | | | | | a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k). | | | | | | | | I | (z) Other: | | | | | | | {3}------------------------------------------------ | Contents | | |---------------------------------------------------------|------| | Report of Independent Registered Public Accounting Firm | | | Financial Statement | | | Statement of Financial Condition | 2 | | Notes to the Statement of Financial Condition | 3-13 | . {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) RSMUSLLP # Report of Independent Registered Public Accounting Firm Manage and Member Old Mis ion lapital LLC # **Opinion on t e Financial Statement** We hav aud1ed the accompanying statement of financial condition of Old Mission Capital LLC (the Co pan ) as of December 31 , 2023, and the related notes (collectively, the financial statement). In our o inio r the financial statement presents fairly, in all material respects, the financial position of the Com any as of December 31, 2023, in conformity with accounting principles generally accepted in the Unit d Sties of America. # **Basis fo Op nion** This fina cial tatement is the responsibility of the Company's management. Our responsibility is to express n o inion on the Company's financial statement based on our audit. We are a public accounting firm regi~tere 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 jppli ble rules and regulations of the Securities and Exchange Commission and the PCAOB. We condpcte our audit in accordance with the standards of the PCAOB. Those standards require that we plan ~nd p rform the audit to obtain reasonable assurance about whether the financial statement is free of mrteri~I misstatement, whether due to error or fraud. The Company is not required to have, nor were we fnga~ed to perform, an audit of its internal control over financial reporting. As part of our audit we are rEf!uirElfl to obtain an understanding of internal control over financial reporting but not for the purpose lf exiessing an opinion on the effectiveness of the Company's internal control over financial reporting. Ace rdingly, we express no such opinion. Our audit inclu1 ed performing procedures to assess the risks of material misstatement of the financial statemen , whether due to error or fraud, and performing procedures that respond to those risks. Such procedur s in~1 1uded examining, on a test basis, evidence regarding the amounts and disclosures in the financial ~tate ent. Our audit also included evaluating the accounting principles used and significant estimates mad by management, as well as evaluating the overall presentation of the financial statement. ;;: ~tour audit pmvides a reasonable basis for our opinion. We have feN as the Company's auditor since 2013. Chicago, ~llinoi February · 9, 2 24 # THE **POWER** 0 AUDIT I TAX IC 1 RSM US LLP Is the U.S. me bet of RSM lntUito,g mns. ~t ,,.,,.\_,s.com/oooutus fo, **n,on, nfotrrollonrepdingRSM** us Lt.P **and** RSM lotern.110"\31. {5}------------------------------------------------ # **Stateme t of inancial Condition Decemb r 31 2023** | Assets | | |------------------------------------------------------------------------------|----------------------| | Cash | \$
2,476,326 | | Receivabl s fr m clearing brokers, net | 6,433,572 | | Financial i str~ents, pledged | 9,718,652,010 | | Property, qui9ment and leases (net of accumulated depreciation of \$713,892) | 128,451 | | Receivabl s fr m affiliates | 5,418,683 | | Other ass ts | 2,959,696 | | T tal assets | \$
9,736,068,738 | | Liabilities and
ember's Capital | | | Liabilities | | | Financi I instlllments sold, not yet purchased | \$
9,011 ,734,348 | | Payabl to cl~aring broker | 203,546,809 | | Account pay13ble and accrued expenses | 59,806,361 | | Payable to affiliates | 14 302 361 | | Tj tal liabilities | 9,289,389,879 | | Member's apitli | 446,678,859 | | To I liabilities and member's capital | \$
9,736,068,738 | See Notes to th Statement of Financial Condition. {6}------------------------------------------------ # **Notes to Statl ment of Financial Condition** # **Note 1. Description of Business and Summary of Significant Accounting Policies** **Descripti n** JI **Business:** Old Mission Capital LLC, an Illinois limited liability company (the Company), is a register~broker-dealer engaged exclusively in firm trading on a proprietary basis for its own account. The Compan~[is a Tgistered broker-dealer with the Securities and Exchange Commission (SEC) and the NYSE Chicago I c. (formerly Chicago Stock Exchange), with its office of operations located in Chicago, Illinois and New York, Ne Yort The Company is wholly owned by Old Mission Group LLC (Parent), and the Parent is the managing melber of the Company. **Manage ent Estimates and Assumptions:** The preparation of financial statements in conformity with accounting principles . enefl:IIY accepted in the United States of America (GAAP) requires management to make estimates and assumpti ns thrt affect the amounts reported in the financial statements and accompanying notes. Actual res Its could differ from those estimates. Future events and their effects cannot be predicted with certainty; according , acctounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these fi anci~I statements change as new events occur, as more experience is acquired, as additional informatio is ofutained and as the operating environment changes. **Due to/fr m c learing Broker:** Receivables from and payables to clearing broker consist of cash accounts, amounts orro{ed on margin, amounts owed or collectible on unsettled transactions, dividends receivable or payable, a d in&rest receivable or payable. Futures transactions are recorded in receivables from and payables to clearing b ker n the statement of financial condition, netted by dearing organization. The Company may obtain short-te fina cing from clearing brokers from whom it can borrow against its proprietary inventory positions, subject to llat ral maintenance requirements. The Company's trades and contracts are cleared through a broker-de ler a d settled daily. Because of this daily settlement, the amount of unsettled credit exposures is limited to e a ount owed the Company for a very short period of time. The Company continually reviews the credit qua ity of its counterparties. Joint Bae Off ce " JBO" Status: The Company entered into a JBO clearing arrangement with Goldman Sachs & Co. (GS 0). articipation in a JBO allows the Company to receive preferential margin treatment for financial securities ans~ctions from GSCO outside of the full customer requirements of Regulation T. As a requirement of this agree ent, fhe Company has invested \$10,000 in ownership interest in non-voting stock in GSCO. This investmen is re~ected in other assets in the statement of financial condition. In addition to the ownership interest, the Comp ny is required to maintain a minimum net liquidating equity of \$1 million in the JBO account. **Property nd :quipment:** Property and equipment consists of computer equipment, furniture and leasehold improvem nts ti at are recorded at their cost. These are depreciated over their estimated useful lives. **Revenue ecO!fnition:** The Company buys and sells securities and derivatives for its own account. The profit or loss is me sure9 by the difference between the acquisition cost and the selling price or current market or fair value. Trad ng gains and losses, which are composed of both realized and unrealized gains and losses, and related exp nseJ are presented net on the statement of income. Proprietary securities transactions in regular-way trades are ecorqed on the trade date, as if they had settled. Profit and loss arising from all securities and derivative t ansat:tions entered into for the account and risk of the Company are recorded on a trade-date basis. **Dividends nd ~ terest:** Dividend income and expense are recognized on the ex-dividend date. Interest income and expen e arj recognized on the accrual basis. **Rebates:** · ebatr s consist of volume discounts, credits or payments received from exchanges or other market places rela ed t9 the placement and/or removal of liquidity from the order flow in the marketplace. Rebates are recorded o an accrual basis and are included net within brokerage, exchange, and clearance fees, net on the statement f inc! me. {7}------------------------------------------------ #### **Notes to Stat ment of Financial Condition** # **Note 1. D,scription of Business and Summary of Significant Accounting Policies (Continued)** **xesf** The Company is a disregarded entity for tax purposes as it is wholly owned by its Parent. As om~any does not pay Federal or state income taxes on its taxable income. The Parent is a limited pany whose members are liable for Federal and state income taxes on their proportionate share of the Company tax1ble income. GAAP re uires anagement to evaluate income tax positions taken by the Company and recognize a tax liability (or asset) f the Company has taken an uncertain income tax position that more likely than not would not be sustained pon examination by the Internal Revenue Service or other tax authorities. Management has analyzed the incom tax positions taken by the Company, and has concluded that as of December 31, 2023, there are no uncertain nco~ tax positions taken or expected to be taken that would require recognition of a liability (or asset) or disclos re in the financial statements. The Company is subject to routine audits by the Internal Revenue Service a d ot r taxing authorities, generally for three years after the tax returns are filed. **Short Sal s:** TJe Company may sell a security it does not own in anticipation of a decline in the fair value of that security. en he Company sells a security short, it must borrow the security sold short and deliver it to the broker-de ler t rough which it made the sale. A gain, limited to the price at which the Company sold short, or a loss, unli 1ted ~ size, will be recognized upon the termination of a short sale. Such transactions are reflected as securities old rt not yet purchased in the accompanying statement of financial condition. **Leases:** T e Company recognizes and measures its leases in accordance with Financial Accounting Standards Boa~d (FASB) Accounting Standards Codification (ASC) 842, Leases. The Company is a lessee in several n ncantellable operating leases, for office space, and other computer equipment. The Company determine **if** a1 arrangement is a lease, or contains a lease, at inception of a contract and when the terms of an existinf) conpct are changed. The Company recognizes a lease liability and a right of use (ROU) asset at the comm\_t,nce~ent date of the lease. The lease liability is initially and subsequently recognized based on the present v lue o its future lease payments. Variable payments are included in the future lease payments when those vari ble ayments depend on an index or a rate. The discount rate is the implicit rate if it is readily determina le o otherwise the Company uses its incremental borrowing rate. The Company's implicit lease rates are ot readily determinable and as result the Company uses the incremental borrowing rate based on the inform tion rvailable at the commencement date for all leases. The Company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease pay entsi under similar terms and in a similar economic environment. The ROU asset is subsequently measured hroui/hout the lease term at the amount of the remeasured lease liability (i.e., present value of the remaining ease payments), plus unamortized initial direct costs, plus (minus) any prepaid (accrued) lease payments, less he unamortized balance of lease incentives received, and any impairment recognized. Lease cost for le se pJyments is recognized on a straight-line basis over the lease term. The Comp ny h~s elected, for all underlying classes of assets, to not recognize ROU assets and lease liabilities f r sho -term leases that have a lease term of 12 months or less at lease commencement, and do not include an ptio to purchase the underlying asset that the Company is reasonably certain to exercise. The Company ecogpizes lease costs associated with their short-term leases on a straight-line basis over the lease term. The omPiany made an accounting policy election by class of underlying asset, to account for each separate I ase omponent of a contract and its associated non-lease components (lessor-provided maintenan e) a a single lease component. See Note 7 for long-term leases. {8}------------------------------------------------ #### **Notes to Stat ment of Financial Condition** #### **Note 1. D scription of Business and Summary of Significant Accounting Policies (Continued)** **Foreign urrencies:** Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollar am unts at the date of valuation. Purchases and sales of securities and revenue and expense items denomin ted i foreign currencies are translated in to U.S. dollar amounts on the respective dates of such transacti ns. The Com any oes not isolate that portion of the results of operations arising from the effect of changes in foreign exchange rate on financial instruments from fluctuations arising from changes in market prices of financial instrumen shed. **Offsettin** : As f December 31, 2023, the Company holds derivative instruments that are eligible for offset in the statement of fin ncial condition. A right of offset exists when the amounts owed by the Company to another party are deter inabt, the Company has the right to offset the amounts owed with the amounts owed by the other party, the fom any intends to offset and the Company's right of offset is enforceable at law under the same master ne ing rrangement. **Measure ent f Credit Losses on Financial Instruments:** The Company evaluates all financial assets that are meas red Iamortized cost for credit losses under the Current Expected Credit Losses model. Financial assets ev luate include cash, receivables from clearing brokers, net, and other receivables. Expected credit losses are mea ured based on historical experience, current conditions and forecasts that affect the collectabili y of he reported amount. Due to the short duration of the financial assets, there are no material estimates r er it losses related to these financial assets as of December 31, 2023. Segment epo ing: In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (A U) 2 23-07, "Segment Reporting (Topic 280): Improvements lo Reportable Segment Disclosures," which expands r port ble segment disclosure requirements by requiring disclosures of significant reportable segment expenses that are re ularl provided to the Chief Operating Decision Maker ("CODM") and included within each reported measure of a segment pro it or loss. The ASU also requires disclosure of the title and position of the individual identified as the CODM an an planation of how the CODM uses the reported measures of a segment's profit or loss in assessing segment p rfor ance and deciding how to allocate resources. Additionally, ASU 2023-07 requires all segment profit or loss and a~sets isclosures to be provided on an annual and interim basis. ASU 2023-07 is effective for fiscal years beginning ljlfter ecember 15, 2023, or in fiscal 2025 for the Company, and interim periods within fiscal years beginning one year I iter. arly adoption is permitted and the amendments must be applied retrospectively to all prior periods presented. he doption of this guidance will not affect the Company's results of operations, financial condition or cash flows and I e C mpany is currently evaluating the effect the guidance will have on its disclosures. #### **Note 2. ivables from and Payable to Clearing Brokers, net** Receivable and payable to clearing brokers, net at December 31, 2023, consist of the following: | | Receivables | Payable | | | |-----------------------------------|-----------------------|-------------|--|--| | Cash | \$
(8,431,988) \$ | 148,445,869 | | | | Forwards | 294,191 | | | | | pen rade equity, net
Futures - | 11,582,550 | 53,699,669 | | | | Contracts ford fference | 2,935,663 | | | | | ceijlble
Dividend | 69,797 | | | | | Dividend ~aya le | | 686,419 | | | | Interest r cei
ble | | (796,390) | | | | Interest p yabl | (16,641} | 1,51 1,242 | | | | Total | \$
6,433,572
\$ | 203,546,809 | | | | | | | | | {9}------------------------------------------------ # **Notes to Statement of Financial Condition** #### **Note 2. R ceivables from and Payable to Clearing Brokers, net (Continued)** Securitie own • cash and financial instruments held at the Company's clearing brokers collateralize securities sold, not et p rchased and amounts due to clearing brokers, if any, and may serve to satisfy regulatory capital or margin re uire ents. Pledged instruments that can be sold by the secured party are identified in the statement of financial ndit on. # **Note 3. Fair Value of Financial Instruments** Fair value is th price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between t e m rket participants at the measurement date. Financial assets and liabilities recorded at fair value are categ riz based upon the level of judgment associated with the inputs used to measure their value. The fair value hier rchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) nd t e lowest priority to unobservable inputs (Level 3). Inputs are broadly defined as assumptions market pa icip nts would use in pricing an asset or a liability. The three evel of the fair value hierarchy are described below: L vel 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting ~ s the ability to access at the measurement date. lJvel 2 Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either di1ectly or indirectly; and fair value is determined through the use of models or other valuation m1 thod logies. A significant adjustment to a level 2 input could result in the Level 2 measurement brmi g a Level 3 measurement. Le.vel 3 Inputs are unobservable for the asset or liability and include situations where there is little, if any, m4rket ctivity for the asset or liability. The inputs into the determination of fair value are based upon the blt inf rmation in the circumstances and may require significant management judgment or estimation. In certain ses, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such case~ a fi ncial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant t the air value measurement. The Company's assessment of the significance of a particular input to the fair val e me surement in its entirety requires judgment, and considers factors specific to the financial instrument. he pllowing section describes the valuation techniques used by the Company to measure different financial in truments at fair value and includes the level within the fair value hierarchy in which the financial instrument I catrorized. The fair value off quity securities traded on a national exchange, or reported on the NASDAQ national market, is based on t e las reported sales price on the day of valuation. The fair value of exchange-traded equity options are based on t e nat onal best bid/offer. The fair value of all other derivative contracts is based upon exchange settlement rices These financial instruments are classified as level 1 in the fair value hierarchy. Foreign cu enc I spot forward contracts are traded on the over the counter (OTC) market. The fair value for the forward co tractj are valued using third-party observable market data. These forward contracts are generally categorize in L J vel 2 of the fair value hierarchy. Contracts f r difffrences are traded on the OTC market. The fair value of contracts for differences is derived by taking the d ffere ce between the quoted price of the underlying security and the contract price. Contracts for differences reg nerally categorized in Level 2 of the fair value hierarchy. Corporate nds are valued based on broker quotes or alternative pricing sources with reasonable levels of price transparen . Co porate bonds are generally categorized in Level 2 of the fair value hierarchy. Futures con ract traded on a national securities exchan.9e are included in the receivables from and payables to clearing org niza ions and are valued at the exchange ~ttlement price. {10}------------------------------------------------ #### Notes to Statement of Financial Condition #### Note 3. | Fair Value of Financial Instruments (Continued) During the course of the year, the Company had foreign currencies receivable from or payable to its clearing brokers. Their values were based using third party observable data and are categorized in Level 1 in the fair value hierarchy. The following summarizes the Company's assets and liabilities measured at fair value on a recurring basis at December 31, 2023, using the fair value hierarchy: | | | Total | | Level 1 | | Level 2 | |------------------------------------------------|---|---------------|----|---------------|------|-------------| | Assets | | | | | | | | Financial instruments owned: | | | | | | | | Equity securities | S | 4,035,106,183 | \$ | 4,035,106,183 | S | | | Options on equities | | 4,942,942,010 | | 4,942,942,010 | | | | U.S.A. Treasury bonds | | 33,465,416 | | | | 33,465,416 | | Corporate bonds | | 707,138,401 | | | | 707,138,401 | | Receivables from clearing brokers: | | | | | | | | Futures - open trade equity | | 11,582,550 | | 11,582,550 | | | | Forwards | | 294,191 | | | | 294,191 | | Contracts for difference | | 2,935,663 | | | | 2,935,663 | | Total assets at fair value | S | 9,733,464,414 | S | 8,989,630,743 | 5 | 743,833,671 | | Liabilities | | | | | | | | Financial instruments sold, not yet purchased: | | | | | | | | Equity securities | S | 1.805.420,631 | S | 1,805,420,631 | ಳ್ಳಿ | | | Options on equities | | 6,470,864,701 | | 6,470,864,701 | | | | U.S.A. Treasury bonds | L | 21,197,080 | | | | 21,197,080 | | Corporate bonds | | 714,251,936 | | | | 714.251.936 | | Payable to clearing broker | | | | | | | | Futures - open trade equity | | 53,699,669 | | 53,699,669 | | | | Total liabilities at fair value | S | 9,065,434,017 | S | 8,329,985,001 | S | 735,449,016 | The Company assesses the levels of securities at each measurement day, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer. The Company had no transfers during the year. The Company had no Level 3 assets or liabilities at December 31, 2023. With the exception of exchange memberships, substantially all of the Company's other financial assets and liabilities are considered financial instruments and are either already at fair value, or at carrying amounts that approximate fair value because of the short maturity of the assets or liabilities. #### Note 4. Financial Instruments Derivatives: Derivative financial instruments used for trading purposes, including economic hedges of trading instruments, are carried at fair value. Derivatives used for economic hedging purposes are mainly futures. Unrealized gains and losses on these derivative contracts are recognized currently in the statement of income as part of firm trading revenues. The Company does not apply hedge accounting as defined in the FASB ASC 815, Derivatives and Hedging, as all the financial instruments are recorded at fair value with changes in fair values reflected in earnings. Fair values of forwards, contracts for difference and options contracts are recorded in financial instruments owned or financial instruments sold, not yet purchased, as appropriate. Open trade equity in futures transactions are recorded in receivable from and payable to clearing broker, as applicable. {11}------------------------------------------------ # **Notes tolstatlment of Financial Condition** # **Note 4. Fi ancial Instruments (Continued)** # **Statemef t of r nancial Condition Tabular Disclosures** The folio ing ible identifies the fair value amounts of derivative instruments included in the statement of financial condition s d ·vative contracts, categorized by primary underlying risk, at December 31, 2023. Balances are presente on a gross basis, prior to the application of the impact of counterparty and collateral netting. Total derivative asse s and liabilities are adjusted on an aggregate basis to take into consideration the effects of master netting arrange!nents and have been reduced by the application of cash collateral receivables and payables with its counte arties. | | | Derivative
Liabilities | | | |-------------------------------|----|---------------------------|----|-----------------| | | | | | | | | \$ | 4,942,942,010 | \$ | (6,470,864,701) | | | | 4,148,452 | | (1,212,789) | | | | 19,444,605 | | (61,561 ,724) | | Foreign c re y exchange rate: | | | | | | Fo]ard
ntracts | | 629.967 | | (335,776) | | | \$ | 4,967,165,034 | \$ | (6,533.974,990l | The Com any i required to disclose information about certain derivative instruments that are either eligible for offset in a . cord nee with GAAP or subject to an enforceable master netting arrangement or similar agreement. {12}------------------------------------------------ #### Notes to Statement of Financial Condition #### Note 4. Financial Instruments (Continued) The following table provides disclosure regarding the potential effect of offsetting of derivative liabilities presented in the statement of financial condition. | | Gross
Amounts of | Gross
Amounts
Offset in the | | Net Amounts of
Recognized
Assets and
Liabilities
Presented in the | | Gross Amounts Not | | | | | |-------------------------------------------|-----------------------------------------|-----------------------------------|----------------------------------------|-------------------------------------------------------------------------------|----------------------------------------|-------------------|--------------------------|---|-------------------------------------|---------------| | | Recognized
Assets and
Liabilities | | Statement of
Financial
Condition | | Statement of
Financial
Condition | | Financial
Instruments | | Collateral
Received /
Pledged | Net
Amount | | Assets | | | | | | | | | | | | Derivative
(1)(2)
Futures contracts | \$ 19,444,605 | ક | (7,888,170) S | | 11,556,435 | ಕ | | S | | \$ 11,556,435 | | Contracts for difference (1) | 4,148,452 | | (1,212,789) | | 2,935,663 | | | | | 2,935,663 | | Forward contracts (1) | 629,967 | | (335,776) | | 294,191 | | | | | 294,191 | | Liabilities
Derivative | | | | | | | | | | | | (2)
Futures contracts | \$ 61,561,724 | S | (7,888,170) | 5 | 53,673,554 | 5 | | 6 | | \$ 53,673,554 | | Contracts for difference (1) | 1,212,789 | | (1,212,789) | | | | | | | | | Forward contracts (1) | 335,776 | | (335,776) | | - | | | | | - | Location on the statement of financial condition (1) Receivables from clearing brokers, net (2) Payable to clearing broker #### Note 5. Summary of Off-Balance Sheet Risks Financial Instruments: The Company enters into various transactions involving derivatives and other off-balance sheet risk. These financial instruments include futures and foreign exchange contracts. These derivative financial instruments are entered for trading purposes or to economically hedge other positions or transactions. Futures provide for the delayed delivery of the underlying instrument. Futures contracts are executed on an exchange, and cash settlement is made on a daily basis for market movements. Accordingly, futures contracts generally do not have credit risk is substantially dependent on the value of the underlying financial instruments and is affected by market forces such as volatility and changes in interest and foreign exchange rates. Financial Futures Contracts: The Company invests in financial futures contracts for the purpose of hedging its existing portfolio securities that the Company intends to purchase, against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering a futures contract, the Company is required to pledge to the broker the amount of cash, U.S. Government securities, or other assets, equal to the certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as "variation margin"," are made or received by the Company each day, depending on daily fluctuations in the fair value of the underlying security. Should market conditions move unexpectedly, the Company may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves risk of imperfect correlation in movements in the price of futures contracts, interest rates, and underlying hedged assets. {13}------------------------------------------------ # **Notes to StatJment of Financial Condition** ## **Note 5. S mmary of Off-Balance Sheet Risks (Continued)** **Forward ontriacts:** The Company enters into forward contracts to hedge itself against foreign currency exchange risk for its foreir currency denominated assets and liabilities due to adverse foreign currency fluctuations against the U.S. ollar, and to manage the price risk associated with its commodity portfolio positions. 1 Forward c rrency and commodities transactions are contracts or agreements for delayed delivery of specific currencie and ~mmodities in which the seller agrees to make delivery at a specified future date of specified currenci~and \_pommodities. Risk associated with forward currency and commodities contracts are the inability of the count rpartrs to meet the terms of their contracts and movements in fair value and exchange rates. Gains and losse on forward currency and commodities transactions are recorded based on changes in fair values and are includ d **wii'** net realized and unrealized gain CToss) on derivative contracts as net trading gains and losses in the state en! o income. **Options:** he ompany is subject to equity price risk in the normal course of pursuing its investment objectives. The Com ny may enter into options to speculate on the price movements of the financial instrument underlying the option or f~use as an economic hedge against certain equity positions held in the Company's portfolio holdings. ptio contracts give the Company the right, but not the obligation, to buy or sell within a limited time, a financial in tru nt, commodity or currency at a contracted price that may also be settled in cash, based on differential be een specified indices or prices. Options w tten bligate the Company to buy or sell within a limited time, a financial instrument, commodity or currency a a co tracted price that may also be settled in cash, based on differentials between specified indices or prices. Op ons ritten by the Company may expose the Company to the market risk of an unfavorable change in the financi I inst men! underlying the written option. The Comp ny i exposed to counterparty risk from the potential that a seller of an option contract does not sell or purchase t e un erlying asset as agreed under the terms of the option contract. The maximum risk of loss from the counte party risk to the Company is the fair value of the contracts and the premiums paid to purchase its open option con acts. The Company considers the credit risk of the intermediary counterparties to its option transaction in erluating potential credit risk. **Contracts or Difference:** The Company enters into contracts for differences arrangements with broker-dealers. Contracts f r diffF,rences arrangements involve an agreement by the Company and a counterparty to exchange the differe btjtween the opening and closing price of the position underlying the contract, which is generally an equity sec rity. Therefore, amounts required for the future satisfaction of the contracts for differences may be greater or I ss tHan the amount recorded. **Corporate ont:** The Company enters into corporate bond obligations as part of its f1Xed income business. The corporate b nds-i;re carried at fair market value based on quoted market prices. Gains and losses on the bond obligations re r~orded based on changes in fair market value and are included in net trading gains and losses in the state ent bf income. **Margin:** Th co+,pany's activities may be transacted on either a cash or margin basis. In margin transactions, credit is ext ndeq to the Company, and is subject to various regulatory and internal margin requirements, collateraliz by cash and securities in the Company's account. Such transactions may expose the Company to significant o -balhnce sheet risk in the event margin requirements are not sufficient to fully cover losses that the Company ay intur. The Company monitors required margin levels and, pursuant to such guidelines, may deposit ad ition collateral or reduce positions when necessary. {14}------------------------------------------------ # **Notes to Statl ment of Financial Condition** #### **Note 5. S mmary of Off-Balance Sheet Risks (Continued)** **Concent tio! of Credit Risk:** The Company engages in various trading activities in which counterparties primarily i clud broker-dealers, banks, and other financial institutions. In the event counterparties do not fulfill their oblig lion , the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterpa or issuer of the instrument. It is the Company's policy to review, as necessary, the credit standing of each cou terp . **Cash:** Th Co pany regularly maintains cash balances that exceed Federal Deposit Insurance Corporation limits. Th Co pany has not incurred any losses on these accounts in the past and does not expect any such loss in th futur . **Market Ri k:** arket risk is the potential change in an instrument's value caused by fluctuations in interest rates, equity pri s, dit spreads, volatilities, correlations, liquidity, or other risks. Exposure to market risk is influenced by a numijer of actors, including the relationships between financial instruments and the volatility and liquidity in the markets in hich financial instruments are traded. In many cases, the use of derivative financial instruments serves to od· or offset market risk associated with other transactions and accordingly, serves to decrease the Company' ove all exposure to market risk. The Company utilizes various analytical monitoring techniques to control its expo ure to market risk. #### **Note 6. Gu rantees and Indemnifications** FASB AS 460 Guarantees, requires the Company to disclose information about its obligations under certain guarantee arran ements. FASB ASC 460 defines guarantees as contracts and indemnification agreements that contingent y req ire a guarantor to make payments to the guaranteed party based on changes in an underlying (such as a inte est or foreign exchange rate, security or commodity price, an index or the occurrence or nonoccurr nee fa specified event) related to an asset, liability or equity security of a guaranteed party. This guidance lso d fines guarantees as contracts that contingently require the guarantor to make payments to the guarantee pa based on another entity's failure to perform under an agreement as well as indirect guarantees of the inde tedn ss of others. The Comp ny t des and holds certain fair-valued derivative contracts, which may constitute guarantees. Such contracts i clud written option contracts. Written options obligate the Company to deliver or take delivery of specified fi anci I instruments at a contracted price in the event the holder exercises the option. Since the Company oes ~ot track the counterparties' purpose for entering into a derivative contract, it has disclosed derivative ntra ts that are likely to be used to protect against a change in an underlying financial instrument, regardless f th ir actual use. As of Dec mbe 31, 2023, the maximum payouts for these contracts are limited to the notional amounts of each contract. axim m payouts do not represent the expected future cash requirements as the Company's written options' po ition may be liquidated or expire without being exercised by the holder. In addition, maximum payout amountsie fre uently decreased by offsetting positions taken by the Company as part of its hedging activities. In the no al co rse of business, the Company enters into contracts that contain a variety of representations and warranties at p ovide indemnifications under certain circumstances. The Company's maximum exposure under these arran em nts is unknown, as this would involve future claims that may be made against the Company that have not y t rred. The Company believes that it is unlikely it will have to make material payments under these arran em nts and has not recorded any contingent liability in the financial statements for these indemnifica ions. {15}------------------------------------------------ # Notes to Statlment of Financial Condition # Note 7. Ej ployee 401 (k) Savings Plan The Com any1ponsors a savings plan under Section 401(k) of the Internal Revenue Code covering substantially all salarie em loyees. Under the plan, employee contributions are partially matched by the Company. # **Note 8. Re ated-Party Transactions** The Com any nd its affiliated companies (The Affiliated Group) through common ownership entered into a cooperati n ag~eement to apply transfer pricing methods to allocate revenues and expenses amongst The Affiliated Group. Tme Capperation Agreement calls for The Affiliated Group to provide trading services to each other and in return sha I be ~!located its respective portion of net profits or losses generated in the accounts of the members of The Affilia ed G oup. As of December 31 , 2023 the Company has a payable of \$2,254,520 due to its parent Old Mission G oup, LC (OMG) for this cooperation allocation and other services. This amount is included in payable to affiliates o the tatement of financial condition. The Com any as entered into an expense sharing arrangement with six of its affiliated companies through common ner hip, Old Mission Trading LLC, Old Mission Markets LLC, Old Mission Cayman LTD, Old Mission Global Tr ing LP, Old Mission Energy Trading LLC, and Old Mission Asia PTE L TO. Under this arrangement the is subseq ently reimbursed by the affiliates. The Company had total receivables of \$5,361,071 due from these entities rel led o the expense sharing arrangement. In addition, the Company had a receivable of \$57,612 due from an a 1liate company for various other services. The Com ny as entered into a computer leasing and related services agreement with Old Mission Hardware LLC. As o Oecjmber 31, 2023 the Company had a payable of \$47,841 due to Old Mission Hardware LLC. The Comp ny has entered into a revolving loan agreement with OMG where the Company may borrow, at any time, an amount not tp exceed \$47,500,000, which must be paid within 364 days from the date the loan was issued. Interest ex ns1 will be agreed upon by both parties and will be paid by the Company to OMG. As of December 31, 2023, the [mpf.ny has a payable of \$12,000,000 due to OMG on this revolving loan balance and is included in payable to ffiliats on the statement of financial condition. The Comp ny s a cross-affiliate master netting agreement with GS! and GSEC whereby the net aggregate position of an a 1liate of the Company has been pledged to the GS Entities and may be used in determining the margin re ire ents of the Company. # **Note 9. Ne Capital Requirements** The Comp ny i subject to the Securities and Exchange Commission Uniform Net Capital Rule (SEC Rule 15c3 1) (the Rule), which requires the maintenance of minimum net capital and requires the ratio of aggregate i debWness to net capital, both as defined, not to exceed 15 to 1. The Company is engaged in market ma er activities which, as provided by the Rule, requires the Company to maintain minimum net capital equal to \$2 500 tpr each security over \$5 and \$1 ,000 for each security under \$5 in which it makes a market with a limit of \$1, 0,090. The Company uses the greater of the minimum net capital requirement per the computation of the aggreg te indlebtedness or the market maker standard. Failure to maintain the minimum capital amount could result in th loss f the Company's ability to act as a securities broker-dealer under the Securities Exchange Act of 1934. At D cem er 31, 2023, the Company had net capital of \$237,210,872, which was \$232,270,288 in excess of its requir d ne capital of \$4,940,584. The Company's percentage of aggregate indebtedness to net capital was 31 .24 per nt. {16}------------------------------------------------ # Notes to Statement of Financial Condition # Note 10. Regulatory and Other Contingencies In the ordinary course of business, the Company is subject to regulatory investigations and other regulatory and legal proceedings. Management cannot predict with certainty the outcome of pending regulatory and legal proceedings. A substantial adverse judgment or other resolution regardings could have a material adverse effect on the Company's statement of financial condition, results of operations, and cash flows. However, in the opinion of management, after consultation with legal counsel, the outcome of any pending investigation is not likely to have a material adverse effect on the financial condition, results of operations, and cash flows of the Company. #### Note 11. Subsequent Events Management has evaluated all known subsequent events from December 31, 2023 to the date the accompanying financial statement was issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.