# QUANTITATIVE BROKERS, LLC X-17A-5 (2026-03-02) — Broker-dealer annual report - Company: QUANTITATIVE BROKERS, LLC - Form: X-17A-5 - Filed: 2026-03-02 - Period: 2025-12-31 - Accession: 0001592953-26-000001 - CIK: 1592953 - File #: 8-69396 - Type: Broker-dealer - Material weakness: No - Auditor: Michael Coglianese CPA, P.C. - Auditor location: Lincolnshire, IL - Contact: John Allen - Phone: 6462931818 - Email: jallen@quantitativebrokers.com - Website: quantitativebrokers.com - Signed by: John Allen (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1592953/000159295326000001/qbpublic.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington,** D.C. **20549** | OMBAPPROVAL | |--------------------------| | 0MB Number: 3235-0123 | | Expires: Nov. W, 2026 | | Estimated average burden | | hours per response: 12 | | | | SEC FILE NUMBER | | 8-6936 | ## **ANNUAL REPORTS FORM X-17A-5 PART** Ill | Information Required Pursuanto Rules 17a-5, 17a-12, and 18a-7 under the Securities E1l!J Broker-dealer
D Security-based swap dealer
□ Check here if respondent is also an OTC derivatives dealer | | □ Major security-based swap participant | | | ADDRESS OF PRINCIPAL PIACE OF BUSINESS: {Do not use a P.O. box no.) | | | | | 285 Madison Avenue, Suite 1700 | | | | | | (No. and Street) | | | | New York | NY | | 10017 | | (City) | (State) | | {Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | John Allen | 646-293-1818 | | jallen@quantitativebrokers.com | | (Name) | (Area Code-Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing• | | | | | Michael Coglianese CPA P.C. | | | | | | (Name-If individual, state last, first, and middle name) | | | | 300 Tristate International, Ste 180 Lincolnshire | | IL | 60069 | | (Address) | (Gty) | (Stat<>) | (ZipCodo) | | 'i
10/20/2009 | | 3874 | | | Mth PC/\OSJ{ff '"'""'•I
of ""'""'oo | FOR OFFICIAL USE ONLY {PC/\08 R,-tioo | | N,mb,,, W appli~""l | | | | | I | • Claims for exemption from the requirement that the annual reports be covered bv the reports of an independent public accountant must be supported by a statement of facts and circumstances re.lied on as the basis of the exemption. See 17 CfR 240.17a-S(e)(1)(ii), if applicable. Persons who are to respond to the collectlon of Information contained In this form are not required to respond unless the form displays a currently valid 0MB control number. {1}------------------------------------------------ #### **OATH OR AFFIRMATION** | I John Allen
,.:.:.:.;;.;.;~~---------------' | | swear (or affirm) that, to the best of my knowledge and belief, the | | | |----------------------------------------------------------------------|--|---------------------------------------------------------------------|--|-------| | financial report pertaining to the firm of Quantitative Brokers, LLC | | | | as of | 12/31 2~ 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. Sigaatff **GL** Title: Chief~ Officer ## **This filing\*\* contains (check all applicable boxes):** - Iii (a) Statement of financial condition. - D (b) Notes to consolidated statement of financial condition. - D (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 {d) Statement of cash flows. - D (e) Statement of changes in stockholders' or partners' or sole proprietor's equity. - D (f) Statement of changes in liabilities subordinated to claims of creditors. - Iii (g) Notes to consolidated financial statements. - D (h) Computation of net capital under 17 CFR 240.1Sc3-1 or 17 CFR 240.18a-1, as applicable. - D (i) Computation of tangible net worth under 17 CFR 240.18a-2. - D (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3. - D (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. - D {I) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. - D (m) Information relating to possession or control requirements for customers under 17 CFR 240.1Sc3-3. - D {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.lBa-4, as applicable. - D (o) 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.lBa-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. - D {p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition. - **li!ii** (q) oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 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. - D (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. - D {t) Independent public accountant's report based on an examination of the statement of financial condition. - D (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable. - D (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. - I!!! (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. - D (y) 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 240.17a-12{k). - □ (z) Other: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ \_ "\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.1Ba-7(d)(2}, as applicable. {2}------------------------------------------------ CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT December 31, 2025 These financial statements and schedules should be deemed confidential pursuant to Subparagraph (e)(3) of Rule 17a-5 pf the Securities Exchange Act of 1934. A Statement of Financial Condition, issued separately, has been filed with the Securities Exchange Commission simultaneously herewith as a Public Document {3}------------------------------------------------ ## **CONTENTS** | Report of Independent Registered Public Accounting Firm | | |---------------------------------------------------------|-----| | Financial Statements | | | Consolidated Statement of Financial Condition | 2 | | Notes to Consolidated Financial Statements | 3-9 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ■ MICHAEL COGLIANESE CPA, P.C. ALTERNATIVE INVESTMENT ACCOUNTANTS #### **Report of Independent Registered Public Accounting Firm** To the Members and Board of Directors of Quantitative Brokers, LLC and Subsidiaries #### **Opinion on the Financial Statement** We have audited the accompanying consolidated statement of financial condition of Quantitative Brokers, LLC and Subsidiaries as of December 31, 2025, and the related notes ( collectively referred to as the financial statement). In our opinion, the consolidated statement of financial condition presents fairly, in all material respects, the financial position of Quantitative Brokers, LLC and Subsidiaries as of December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. #### **Basis for Opinion** This financial statement is the responsibility of Quantitative Brokers, LLC and Subsidiaries' management. Our responsibility is to express an opinion on Quantitative Brokers, LLC and Subsidiaries' 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 Quantitative Brokers, LLC and Subsidiaries 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 statements. 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 statements. We believe that our audit provides a reasonable basis for our opinion. We have served as Quantitative Brokers, LLC and Subsidiaries' auditor since 2013. (n1 J-i t,,j'WM., UA, *p* C. Lincolnshire, IL March 2. 2026 {5}------------------------------------------------ CONSOLIDATED STATEMENT OF FINANCIAL CONDITION #### **December 31 2025** | Cash
Accounts receivable
Furniture and equipment. net
Right of use Asset
Security Deposits
Investments
Prepaid Expenses
Other Asset | \$
911,586
3,405,225
1,048,027
2,667,687
257,036
9,000,000
751,900
140,284 | |----------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------| | Total assets | \$
18,181,745 | | Liabilities and members' equity | | | Liabilities | | | Current Liabilities | | | Accounts payable | \$
521,296 | | Accrued Compensation | 3,461,402 | | Accrued expenses | 499,897 | | Lease Liability | 621,382 | | Other Current Liability | 117,366 | | Total Current Liabilities | 5,221,343 | | Long Term Liabilities | | | Subordinated Borrowings | \$
3,222,012 | | Lease liability | 2,009,391 | | Total Long Term Liabilities | 5,231,403 | | Total Liabilities | 10,452,746 | | Member's equity | | | Member's equity | 7,728,999 | | Total members' equity | 7,728,999 | | Total liabiliUes and members' equity | \$
18,181,745 | {6}------------------------------------------------ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ## **1. Nature of operations and summary of significant accounting policies** ## Consolidation The consolidated financial statements include the accounts of "Quantitative Brokers, LLC" and its wholly owned subsidiaries, "Quantitative Brokers UK Limited" ("QB UK") and "Quantitative Brokers Software India Private Limited" ("QB India") and Quantitative Brokers Australia Pty Ltd. ("QB Australia") and Quantitative Brokers Singapore PTE. Ltd ("QB Singapore"). All significant intercompany accounts and transactions have been eliminated in consolidation. ## Nature of Operations Quantitative Brokers, LLC (the "Company") was formed as a limited liability company under the laws of the State of Delaware. Effective February 25, 2010, the Company was registered with the Commodity Futures Trading Commission ("CFTC") and became a member of the National Futures Association ("NFA"). On December 1, 2014, Quantitative Brokers LLC became registered with the Securities and Exchange Commission ("SEC") as a broker dealer and a member of the Financial Industry Regulatory Authority ("FINRA"). The principal operations of the Company are located in New York City. The Company conducts business as an Introducing Broker ("18"). The Company does not clear any transactions nor accept any money or property to margin or secure any trades or contracts that result or may result there from. The Company conducts algorithmic trade execution for the accounts of institutional customers who are involved in fixed income and commodity futures, as well as US and European government securities transactions. The Company's customers are located primarily in North America, the United Kingdom, Europe and Asia Pacific. The Company is majority owned by Deutsche Boerse Systems Inc. Quantitative Brokers UK Limited, is based in the United Kingdom as a Sales/support office for non-US clients. Quantitative Brokers Software India Private Limited, is based in India as a Development office. Quantitative Brokers Australia Pty Ltd, is based in Australia as a Sales/support office for non-US clients. Quantitative Brokers Singapore PTE. Ltd is based in Singapore as a Sales/support office for non-US clients. ## Government and Other Regulation The Company's business is subject to significant regulation by governmental agencies and self-regulatory organizations. Such regulation includes, among other things, periodic examinations by these regulatory bodies to determine whether the Company is conducting and reporting its operations in accordance with the applicable requirements of these organizations. ## Basis of Presentation The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GMP") as detailed in the Financial Accounting Standards Board's Accounting Standards Codification ("ASC"). ## Translation of Foreign Currency Assets and liabilities denominated in foreign currencies are translated into United States dollar amounts at the yearend exchange rates. Transactions denominated in foreign currencies, including purchases and sales of investments, and income and expenses. are translated into United States dollar amounts on the transaction date. Adjustments arising from foreign currency transactions are reflected in the consolidated statement of operations. {7}------------------------------------------------ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS #### Income Taxes The Company does not record a provision for Federal and State income taxes because the members report their share of the Company's income or loss on their income tax returns. The financial statements reflect the Company's transactions without adjustment, if any, required for Federal and State income tax purposes. The Company records a provision for New York City Unincorporated Business Tax. The financial statements include a provision of \$83,800 for 2025. The Company's wholly owned subsidiaries are subject to local corporate income tax. A total provision of approximately \$78,052 is reflected on the Consolidated Statement of Operations. The Company is required to determine whether its tax positions are more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit recognized is measured as the largest amount of benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement with the relevant taxing authority. De-recognition of a tax benefit previously recognized results in the Company recording a tax liability that reduces ending partners' capital. Based on its analysis, the Company has determined that it has not incurred any liability for unrecognized tax benefits as of December 31, 2025. However, the Company's conclusions may be subject to review and adjustment at a later date based on factors including, but not limited to, on-going analyses of and changes to tax laws, regulations and interpretations thereof. The Company files an income tax return in the U.S. federal jurisdiction and may file income tax returns in various U.S. states and foreign jurisdictions. Generally, the Company is no longer subject to income tax examinations by major taxing authorities for years before 2020. #### Revenue Recognition Revenue from contracts with customers is composed of execution services. Such fees are recognized at the point in time when the Company's performance under the terms of the contractual arrangement is completed, which is typically at the closing of the transaction. Reimbursed expenses related to these transactions are recorded as revenue and are included in reimbursed expenses. Revenue from two clients represents 23% of total revenue for 2025. The Company sometimes receives amounts in advance of the execution services. At December 31, 2025, there were no advances to the Company. #### Accounts Receivable and Allowance for Doubtful Accounts The Company has not established an allowance for doubtful accounts based on a through a review of several factors including historical collection experience, current aging status of the customer accounts, and financial condition of its customers. The Company does not generally require collateral for its accounts receivable. A significant portion of the Company's sales are transaction-based compensation for execution services. The Company did have a concentration of two customers that accounted for approximately 35% of the outstanding accounts receivable for the year ended December 31, 2025. The Company does not believe the receivables balance from these customers represents a significant risk based on past collection experience. {8}------------------------------------------------ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS #### Leases The Company accounts for leases in accordance with ASC 842, Leases ("ASC 842"). At the inception or modification of a contract, the Company determines whether a lease exists and classifies its leases as an operating or finance lease at commencement. Right-of-use ("ROU") assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent their obligation to make lease payments arising from the lease. See Note 3 - Operating Leases. As most of the Company's leases do not provide an implicit interest rate, the lease liability is calculated at lease commencement as the present value of unpaid lease payments using the Company's estimated incremental borrowing rate. The incremental borrowing rate represents the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and is determined using a portfolio approach based on information available at the commencement date of the lease. The lease asset also reflects any prepaid rent, initial direct costs incurred and lease incentives received. The Company's lease terms may include optional extension periods when it is reasonably certain that those options will be exercised. #### Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company's management to make estimates and assumptions that affect the amounts disclosed in the financial statements. Actual results could differ from those estimates. The functional currency of the Company's foreign subsidiaries is the local currency. Assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rate in effect at the balance sheet date, while income and expense items are translated at the average exchange rate prevailing during the period. The resulting translation adjustments are included in Accumulated Other Comprehensive Income (Loss) ("AOCI"), a component of Shareholders' Equity. #### Furniture and Equipment Furniture and equipment are stated at cost less accumulated depreciation. Depreciation is computed on a straightline basis over the estimated useful lives of the assets. #### Correction of an Error During the Fiscal Year of 2025, management identified an immaterial error related to the company's accounting for certain lease agreements in a prior period. The error stemmed from inaccurate recorded Right-of-Use (ROU) assets and Lease liabilities for the US and India entities. The correction was made in the current period and did not require the restatement of prior period financial statements because the impact was not material to those periods. The cumulative effect of the adjustment resulted in an increase to beginning retained earnings of \$207,387. The Company has taken steps to enhance internal controls related to lease accounting to prevent similar errors in the future. #### New Accounting Pronouncements In July 2025, the Financial Accounting Standards Board issued ASU 2025-05, Simplified Credit Loss Guidance, whic\_h provides certain entities with a practical expedient and accounting policy election for estimating expected credit losses on current accounts receivable and contract assets arising from revenue transactions. The standard is effective for fiscal years beginning after December 15, 2025, including interim periods within those fiscal years with early adoption permitted. ' {9}------------------------------------------------ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The Company is currently evaluating the impact of this guidance on its financial statements, including the potential use of the practical expedient and related policy elections. The amendments are to be applied prospectively. While the Company expects the standard to simplify the estimation of credit losses for in-scope assets, it has not yet determined the full effect adoption will have on its consolidated financial position, results of operations, or disclosures. The Company does not plan to early adopt and expects to adopt the standard in fiscal year 2026. ## **2. Net capital requirement** The Company is subject to the Securities and Exchange Commission's uniform net capital rule (Rule 15c3-1) which requires the Company to maintain a minimum net capital equal to or greater than \$45,000 or 6213 % of aggregate indebtedness, and a ratio of aggregate indebtedness to net capital not exceeding 15 to 1, both as defined. The Company is also subject to the net capital requirements under Regulation 1.17 of the Commodity Exchange Act. Because the Company has greater than \$1,000,000 in adjusted net capital, under these provisions, the Company is required to maintain minimum net capital as defined of the higher of \$45,000 or the amount of net capital required by Rule 15c3-1{a) of the Securities and Exchange Commission {17 CFR 240.15c3-1(a)). As of December 31, 2025, the Company had net capital of \$4,913,418, which was \$4,546,112 in excess of its required net capital of \$367,306. The Company's net capital ratio was 1.12 to 1. Quantitative Brokers, LLC's consolidated subsidiary, QB UK, has total assets of \$1,330,319 and member's equity of \$416,751. Assets after consolidation are \$510,095 (total assets of QB UK less the intercompany receivable from Quantitative Brokers, LLC). Quantitative Brokers, LLC's consolidated subsidiary, QB India, has total assets of \$1,161,091 and member's equity of \$788,838. Assets after consolidation are \$232,895 (total assets of QB India less the intercompany receivable from Quantitative Brokers, LLC). Quantitative Brokers, LLC's consolidated subsidiary, QB Australia, has total assets of \$291,350 and member's equity of \$220,422. Assets after consolidation are \$86,036 (total assets of QB Australia less the intercompany receivable from Quantitative Brokers, LLC). Quantitative Brokers, LLC's consolidated subsidiary, QB Singapore has total assets of \$23,053 and members equity of \$19,612. Assets after consolidation are \$23,053 (total assets of QB Singapore less the intercompany receivable from Quantitative Brokers, LLC The accounts of Quantitative Brokers, LLC's consolidated subsidiaries are not included in Quantitative Brokers, LLC's computation of net capital as the assets of the consolidated subsidiaries are not readily available for protection of Quantitative Brokers, LLC's counterparties and other creditors, and the liabilities of the consolidated subsidiaries are not guaranteed by Quantitative Brokers, LLC. ## **3. Operating Leases** ## Right of Use Assets Operating lease right of use assets are stated at cost less accumulated depreciation, amortization and impairment. The Company has one operating lease for offices in the US with an imputed annual interest rate of 4.64%. The terms of the lease are 60 months commencing on October 1, 2024, and ending on September 30, 2030. The lease requires the company to maintain a security deposit of approximately \$227,000. {10}------------------------------------------------ ## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The Company has an operating lease for offices in London UK with an imputed annual interest rate of 3%. The term of the lease is 36 months commencing on January 1, 2025, and ending on December 31, 2027. The lease requires the company to maintain a security deposit of approximately \$2,400. The Company has operating leases for offices in Chennai and Bangalore India with an imputed annual interest rate of 7.34%. The term of the Chennai lease is 60 months commencing on May 15, 2023, and ending on May 14, 2028. The term of the Bangalore lease is 14 months commencing on September 1, 2025 and ending on October 31, 2026 The leases requires the Company to maintain a security deposit of approximately \$14,600. The Company has an operating lease for an office in Sydney Australia with an imputed annual interest rate of 1.2%. The term of the Sydney lease 24 months commencing on July 1, 2024, and ending on June 30, 2026. The lease requires the company to maintain a security deposit of approximately \$7,000. The Company recorded a right-of-use asset of approximately \$2,667,687 and a corresponding lease liability of approximately \$2,630,773 on the Company's consolidated statement of financial condition. Total rental expense charged to operations for the year ended December 31, 2025, was approximately \$717,000. | Operating Leases | | | | |------------------------------------|-----------|--|--| | 2026 | 740,203 | | | | 2027 | 707,261 | | | | 2028 | 527,491 | | | | 2029 | 523,180 | | | | 2030 | 392,385 | | | | Thereafter | | | | | Total | 2,890,521 | | | | Less Imputed Interest | 259,748 | | | | Present Value of Lease Liabilities | 2 630 773 | | | As of December 31, 2025, the Company's operating leases had a remaining weighted average lease term of 5.17 years and a weighted average discount rate of 4.33%. ## **4. Furniture and Equipment** Furniture and equipment are stated at cost less accumulated depreciation. Depreciation is computed on a straightline basis over the estimated useful lives of the assets. Furniture and equipment at December 31, 2025 consists of following: | Computer Equipment | \$2,149,890 | | | |-------------------------------|---------------|--|--| | Furniture | \$212,196 | | | | Software | \$901,349 | | | | | \$2,525,367 | | | | Less Accumulated Depreciation | (\$2,215,408) | | | | Furniture and Equipment, net | \$1048027 | | | {11}------------------------------------------------ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Depreciation expense for the year ended December 31, 2025 was approximately \$265,100. ## **5. Commitments, Contingencies and Guarantees** The Company had no underwriting commitments, no contingent liabilities and had not been named as a defendant in any lawsuit at December 31, 2025 or during the year then ended. The Company has issued no guarantees effective at December 31, 2025 or during the year then ended. ## **6. Off balance sheet risk and concentration of credit** In the normal course of business, the Company maintains its cash balances in financial institutions, which at times may exceed federally insured limits. The Company is subject to credit risk to the extent any financial institution with which it conducts business is unable to fulfill contractual obligations on its behalf. Management monitors the financial condition of such financial institutions and does not anticipate any losses from these counterparties. As of December 31, 2025, the amount of cash held in US financial institutions in excess of federally insurance limits was approximately \$517,000. ## **7. 401 (k) Plan** The Company provides a qualified 401 (k) plan covering substantially all full-time employees who have met certain age and length of service requirements. Eligible employees may elect to contribute a percentage of their salary up to a specified maximum. The Company recorded voluntary contributions for 2025 of approximately \$135,500. ## **8. Subordinated Borrowings** On April 22, 2022, the Company entered into a subordinated loan agreement with its Member Deutsche Boerse Systems, Inc in the amount of \$2,500,000 bearing an interest rate of 6.5% per annum. The original maturity of April 22, 2025, had been extended to April 22, 2028. As of December 31, 2025, the Joan has been fully repaid. On January 11, 2023, the Company entered into a subordinated loan agreement with its Member Deutsche Boerse Systems Inc in the amount of \$5,000,000. The loan bears and interest rate of 7.5%, which was reduced from 10% in January 2025. The original maturity of January 11, 2026, has been extended to January 11, 2029. This agreement is recorded as subordinated borrowings on the consolidated statement of financial condition. Interest is added back as additional subordinated borrowings with the principal amount and the interest due at maturity. FINRA has approved the Company's subordinated borrowings. Pursuant to this approval, the amount is allowable in computing the Company's net capital under the SEC's uniform net capital rule. To the extent that such borrowing is required for the Company's continued compliance with minimum net capital requirements, they may not be repaid. The Company made voluntary repayments totaling \$2,000,000 in 2025. ## **9. Subsequent events** The Company has evaluated events subsequent to the balance sheet date for items requiring recording or disclosure in the financial statements. The evaluation was performed through the date the financial statements were available to be issued. Based upon this review, the Company has determined that there were no events which took place that would have a material impact on its financial statements. {12}------------------------------------------------ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ### **10. Single Reportable Segment** The Company is engaged in a single line of business as an introducing broker. The Company has identified it's Chief Executive Officer as the chief operating decision making ("CODM") who uses net income to evaluate the results of the business and to manage the Company. Additionally, the CODM uses excess net capital (see Note 2), which is not a measure of profit and loss, to make operational decisions while maintaining capital adequacy, which as whether to reinvest profits or repay subordinated loans or pay dividends. The Company's operations constitute a single operating segment and therefore, a single reportable segment, because the CODM manages the business activities using information of the Company as a whole. The accounting policies used to measure the profit and loss of the segment are the same as those described in the summary of significant policies. #### **11. Fair Value Measurement** The fair value guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value guidance requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value guidance also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are: - Level 1 Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 assets and liabilities include debt and equity securities traded in an active exchange market, as well as certain - U.S. Treasury securities that are traded by dealers or brokers in active markets. - Level 2 Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities - Level 3 Valuation is determined using model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company's own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include the use of option pricing models, discounted cash flow models and similar techniques. As of December 31, 2025, the Company had an investment in a bank money market fund with a fair value amount of \$9,000,000 based on a Level 1 valuation. There were no transfers between levels in 2025. | Description | Lavel1 | Level2 | Level 3 | Total | |------------------------------|-----------|--------|---------|-----------| | Investment money market fund | 9,000,000 | | | 9,000,000 | Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.