# FENICS EXECUTION, LLC X-17A-5 (2024-02-29) — Broker-dealer annual report - Company: FENICS EXECUTION, LLC - Form: X-17A-5 - Filed: 2024-02-29 - Period: 2023-12-31 - Accession: 0001492598-24-000001 - CIK: 1492598 - File #: 8-68606 - Type: Broker-dealer - Material weakness: No - Auditor: Ernst & Young LLP - Auditor location: New York, NY - Contact: Jingjie Xu - Phone: 9172919948 - Email: jason.hauf@bgcpartners.com - Website: bgcpartners.com - Signed by: Jason Hauf (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1492598/000149259824000001/FENICSBSONLY.pdf --- {0}------------------------------------------------ ![](_page_0_Picture_0.jpeg) STA1El.v.IENT OF FINANCIAL CONDIDON Fenics Execution, LLC December 31, 2023 With Report of Independent Registered Public Accounting Firm {1}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **REPORTS FORMX-17A-5 PART III** | UNITED STATES | 0MB APPROVAL
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REPORTS | SEC FILE NUMBER | 8-68606 **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 01/01/23 MM/DDNY AND ENDING 12/31/23 MM/00/YY #### **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: Fenics Execution, LLC ## TYPE OF REGISTRANT (check all applicable boxes): @Broker-dealer Security-based swap dealer Major security-based swap participant D Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) 5 5 Water Street | | | (No. and Street) | | | | |------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|-----------------|------------|--| | New York | | New York | | 10041 | | | (City) | | (State) | | (Zip Code) | | | PERSON TO CONT ACT WITH REGARD TO THIS FILING | | | | | | | Jason Hauf | | 212-294-7849
Jason.Hauf@bgcpartners.com | | | | | (Name) | | (Area Code - Telephone Number) | (Email Address) | | | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
Ernst & Young LLP | | | | | | | | | (Name - if individual, state last, first, and middle name) | | | | | One Manhattan West, 401 9th A venue | | New York | New York | 10001 | | | (Address) | (City) | | (State) | (Zip Code) | | | 10/20/2003 | | | | | | (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 be covered by the 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. l 7a-5(e)(l )(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 0MB control number.** {2}------------------------------------------------ #### **AFFIRMATION** I, Jason Hauf, affirm that, to the best of my knowledge and belief, the accompanying statement of financial condition pertaining to F enics Execution, LLC ( the "Company"), as of December 31, 2023, are true and correct. I further 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. Chief Financial Officer Notary Public ![](_page_2_Picture_6.jpeg) {3}------------------------------------------------ **This filing\*\* contains (check all applicable boxes):** **0** Statement of Financial Condition. **0** Notes to Statement of Financial Condition. **D** Statement of Operations. **D** Statement of Cash Flows. **D** Statement of Changes in Member's Interest. **D** Statement of Changes in Subordinated Borrowings. **D** Notes to Financial Statements. **D** Computation of net capital under 17 CFR 240. **l** 5c3-**l** or 17 CFR 240. l 8a-l, as applicable. **D** Computation of tangible net worth under 17 CFR 240. l 8a-2. **D** Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. **D** Computation for detennination 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. **D** Computation for Determination of PAB Requirements under Exhibit A to§ 240.15c3-3. **D** Infonnation relating to possession or control requirements for customers under 17 CFR 240.15c3-3. **D** Infonnation 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. **D** Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240. l 5c3-1, 17 CFR 240.18a-1, or 17 CFR 240. l 8a-2, as applicable, and the reserve requirements under **l** 7CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist. **D** Summary of financial data for subsidiaries not consolidated in the statement of financial condition. **0** Oath or affinnation in accordance with 17 CFR 240. l 7a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. **D** Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. **D** Exemption report in accordance with 17 CFR 240. l 7a-5 or 17 CFR 240.18a-7, as applicable. **0** Independent public accountant's report based on an examination of the statement of financial condition. **D** Independent public accountant's report based on an examination of the financial report or financial statements under 17CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. **D** Independent public accountant's report based on an examination of certain statements in the compliance report under 17CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. **D** Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17CFR 240.18a-7, as applicable. **D** Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1 e or 17 CFR 240. **l** 7a-12,as applicable. **D** Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240. l 7a-12(k). **D**Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ **D** A copy of the SIPC Supplemental Report. **D** Supplementary Report of Independent Registered Public Accounting Finn on Internal Control Required by CFTC Regulation 1.16. *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.l7a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.* {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Ernst & Young LLP One Manhattan West New York, NY 10001 Tel: +l 212 773 3000 Fax : +l 212 773 6350 ey.com #### **Report of Independent Registered Public Accounting Firm** To the Member and Officers of Fenics Execution, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Fenics Execution, LLC (the "Company") as of December 31 , 2023 and the related notes (the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company at December 31, 2023, 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 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 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 financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We have served as the Company's auditor since 2015. February 29, 2024 {5}------------------------------------------------ ## Statement of Financial Condition #### December **31,** 2023 #### *(In Thousands)* | Assets | | |-----------------------------------------|-----------| | Cash | \$
453 | | Other assets | 10 | | Total assets | \$
463 | | Liabilities and partners' capital | | | Payables to related parties | 2 | | Total liabilities | 2 | | Members' interest | 461 | | Total liabilities and members' interest | \$
463 | *See notes to statement of financial condition* {6}------------------------------------------------ # Notes to Statement of Financial Condition # December 31, 2023 ## *(In Thousands)* ## **1. General and Summary of Significant Accounting Policies** **Description of Business** - Fenics Execution, LLC (the "Company") is a New York Limited Liability Company and an indirect, wholly-owned subsidiary of BGC Group, Inc. ("BGC"), which is a subsidiary of Cantor Fitzgerald, L.P. ("CFLP"). The Company is a registered brokerdealer with the Securities and Exchange Commission ("SEC") and Financial Industry Regulatory Authority ("FINRA"), an Independent Introducing Broker ("IB") registered with The National Futures Association ("NF A") and the Commodity Futures Trading Commission ("CFTC"), and a member of the Securities Investor Protection Corporation ("SIPC"). The Company has been inactive since registration and has not participated in any securities transactions. **Basis of Presentation** - The statement of financial condition is prepared in accordance with accounting principles generally accepted in the United States of America. **Use of Estimates** - Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities. Management believes that the estimates utilized in preparing the statement of financial condition are reasonable. Estimates, by their nature, are based on judgment and available information. As such, actual results could differ materially from the estimates included in the statement of financial condition. **Cash and Cash Equivalents** - The Company considers all highly liquid investments with maturity dates of 90 days or less at the date of acquisition to be cash equivalents. **Income Taxes** - The Company is a single-member limited liability company and as such is not liable for income tax. Instead, income or loss attributable to the Company's operations is passed through to its sole member who is responsible for reporting such income or loss at the federal, state, and local levels. The Company has not elected to push down and allocate current and deferred tax expense from BGC, and therefore no provision for income tax is required to be disclosed, in accordance with the requirements of Accounting Standards Codification ("ASC") 740, *Income Taxes.* **Segment Information** - The Company currently operates in one reportable segment, brokerage services. **New Accounting Pronouncements** - In October 2023, the FASB issued ASU No. 2023-06, *Disclosure Improvements-Codification Amendments in Response to the SEC s Disclosure Update and Simplification Initiative.* The standard is expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC's regulations. The effective date for the guidance will be the date on which the SEC's removal of the related disclosure from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027 the SEC has not removed the applicable requirements from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entity. Management is currently evaluating the impact of the new standard on the Company's statement of financial condition. {7}------------------------------------------------ ## Notes to Statement of Financial Condition *(continued)* ## December 31, 2023 ### *(In Thousands)* In November 2023, the FASB issued ASU No. 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.* The guidance was issued in response to requests from investors for companies to disclose more information about their financial performance at the segment level. The ASU does not change how a public entity identifies its operating segments, aggregates them or applies the quantitative thresholds to determine its reportable segments. The standard will require a public entity to disclose significant segment expenses and other segment items on an annual and interim basis, and to provide in interim periods all disclosures about a reportable segment's profit or loss and assets that are currently required annually. Public entities with a single reportable segment will be required to provide the new disclosures and all the disclosures currently required under ASC 280. The new guidance will become effective for the Company's statement of financial condition issued for annual reporting periods beginning on January 1, 2024 and for the interim periods beginning on January **1,** 2025, will require retrospective presentation, and early adoption is permitted. Management is currently evaluating the impact of the new standard on the Company's statement of financial condition. ### **2. Commitments and Contingencies** **Legal Matters** - In the ordinary course of business, various legal actions are brought and may be pending against the Company. The Company is also involved, from time to time, in other reviews, investigations and proceedings by governmental and self-regulatory agencies (both formal and informal) regarding the Company's business. Any of such actions may result in judgments, settlements, fines, penalties, injunctions or other relief. As of December 31, 2023, no such claims or actions have been brought against the Company and therefore no reserves were recognized. Legal reserves are established in accordance with the guidance in ASC 450, Contingencies, when a material legal liability is both probable and reasonably estimable. Once established, legal reserves are adjusted when additional information becomes available or when an event occurs requiring a change. #### **3. Related Party Transactions** CFLP and BGC provide the Company with administrative services and other support for which they charge the Company based on the cost of providing such services. Such support includes allocations for utilization of accounting, regulatory, compliance, and legal service, for which the unpaid balances are included in Payables to related parties on the Company's statement of financial condition. During 2023, \$20 due to BGC was settled by a deemed contribution to the Company through BGC 's ownership interest in the Company. #### **4. Regulatory Requirements** As a registered broker-dealer, the Company is subject to the SEC's Uniform Net Capital Rule ("Rule 15c3-1"). The Company has elected to compute its net capital using the alternative method, which requires the maintenance of minimum net capital equal to the greater of \$250 or 2 percent of aggregate debit items computed in accordance with the Formula for Determination of {8}------------------------------------------------ ## Notes to Statement of Financial Condition *(continued)* ## December 31, 2023 ## *(In Thousands)* Reserve Requirements for Brokers and Dealers. As a registered IB with the NF A, the Company is subject to Regulation 1.17 of the CFTC which requires the Company to maintain minimum net capital equal to the greater of \$45, or the amount of net capital required under Rule 15c3-1. At December 31, 2023, the Company had net capital of \$451, which was \$201 in excess of its required net capital. The Company is also required in accordance with SEC Rule 17a-5( d)(2)(i) and CFTC 1.10( d)(2)(ii) to disclose any changes in liabilities subordinated to claims of general creditors. The Company did not have any subordinated borrowings during the year ended December 31, 2023. #### **5. Off-Balance Sheet Risk** The Company has been inactive since its broker-dealer registration and therefore does not have any off-balance sheet risks to disclosures. #### **6. Subsequent Events** The Company has evaluated subsequent events through the date the statement of financial condition was issued. There have been no additional material subsequent events that would require recognition in the statement of financial condition or disclosure in the notes to the statement of financial condition. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.