# NORDEA SECURITIES LLC X-17A-5 (2021-02-25) — Broker-dealer annual report
- Company: NORDEA SECURITIES LLC
- Form: X-17A-5
- Filed: 2021-02-25
- Period: 2020-12-31
- Accession: 0001729875-21-000003
- CIK: 1729875
- File #: 8-70077
- Material weakness: No
- Auditor: RSM US LLP
- Auditor location: New York, NY
- Contact: Kraen Holm-Joergensen
- Phone: 212-318-9625
- Signed by: Kraen Holm-Joergensen (FinOp & COO)
Original filing: https://www.sec.gov/Archives/edgar/data/1729875/000172987521000003/nordeamarketsllc_2020-public.pdf
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Financial Statement Pursuant to Rule 17aͲ5 under the Securities Exchange Act of 1934
December 31, 2020
(Public)
# **Nordea Markets LLC**
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## **Nordea Markets LLC**
(a 100% owned subsidiary of Nordea Markets Holding Company)
SUMMARY OF CONTENTS
- ϭ͘ Report of Independent Registered Public Accounting Firm
- Ϯ͘ Statement of Financial Condition as of December 31, 2020
- ϯ͘ Notes to Financial Statement
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#### **Report of Independent Registered Public Accounting Firm**
To the Member of Nordea Markets LLC
#### **Opinion on the Financial Statements**
We have audited the accompanying statement of financial condition of Nordea Markets LLC (the Company) as of December 31, 2020, and the related notes to the financial statement (collectively, the financial statement). In our opinion, the financial statement presents fairly, in all material respects, the financial position of the Company as of December 31, 2020, in conformity with accounting principles generally accepted in the United States of America.
#### **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 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. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement of the financial statement, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion.
We have served as the Company's auditor since 2019.
New York, New York February 22, 2021
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#### **STATEMENT OF FINANCIAL CONDITION**
| Nordea Markets LLC | As of December 31, 2020 | |
|----------------------------------------------|-------------------------|--|
| | | |
| ASSETS | | |
| Cash and Cash Equivalents | | |
| Cash | 5,000,000 | |
| Cash - Money Market | 17,753,619 | |
| Total Cash and Cash Equivalents | 22,753,619 | |
| Receivable from Affiliate | 425,211 | |
| TOTAL ASSETS | 23,178,830 | |
| LIABILITIES & MEMBER'S EQUITY
Liabilities | | |
| Accounts Payable | 1,258 | |
| Total Liabilities | 1,258 | |
| Member's Equity | 23,177,572 | |
| TOTAL LIABILITIES & MEMBER'S EQUITY | 23,178,830 | |
See accompanying notes to Statement of Financial Condition.
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## **A. Organization**
Nordea Markets LLC (NML or the Company) is a wholly owned subsidiary of Nordea Markets Holding Company, whose ultimate parent is Nordea Bank Abp (the Parent), a company domiciled in Finland. NML is a registered brokerͲdealer in the United States of America under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority, Inc. (FINRA).
The Company acts as a chaperoning brokerͲdealer pursuant to Rule 15aͲ6 for institutional and corporate customers in certain foreign bond and securities offerings as well as M&A activities. The CompanyĐŚĂƉĞƌŽŶƐtrades that are executed and cleared through the Parent͘
#### **B. Cash and Cash Equivalents**
NML considers its holdings in money markets accounts and overnight investments as cash equivͲ alents. NML considers all highly liquid instruments with original maturities of three months or less to be cash equivalents.
Cash held by financial institutions which exceeds the Federal Deposit Insurance Corporation (FDIC) limits exposes the Company to concentration of credit risk. Balances throughout the year usually exceed the maximum coverage provided by the FDIC on insured depositor accounts.
#### **C. Accounting estimates and assumptions**
NML conforms to the Parent's fiscal year end of December 31. The preparation of financial stateͲ ments in conformity with U.S. generally accepted accounting principles ("GAAP") requires NML to make certain estimates and assumptions that affect the amounts reported in the financial statements. Management believes that the estimates utilized in preparing the financial stateͲ ments are reasonable. Actual results could differ from these estimates.
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### **D. Receivables**
NML does not currently have accounts payable to or receivable from broker dealers. The receivͲ able relates to service fee intergroup income of \$425,019 due from affiliate and accrued interest on cash balance.
#### **E. Payables**
NML pays SIPC assessment fees semiͲannually by filing forms SIPCͲ6 and SIPCͲ7. During the year ended December 31, 2020 the only accounts payable NML incurred were SIPC assessment fees. The payable balance as of December 31, 2020 is \$1,258.
## **F. Property and Equipment**
NML has no property nor does NML own any equipment.
#### **G. New Accounting Pronouncements**
In June 2016, the FASB issued ASU 2016Ͳ13, Financial InstrumentsͲCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The standard's main goal is to improve financial reporting by requiring earlier recognition of credit losses on financing receivables and other financial assets in scope. NML adopted Topic 326 in its financial statements for the year ended December 31, 2020 with no material impact.
### **H. Fair Value of Financial Instruments**
Assets and Liabilities are measured at fair value according to standard fair value requirements under ASC 820.
ASC 820 defines fair value, establishes a framework for measuring fair value and provides a fair value hierarchy. Under ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
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## **H. Fair Value of Financial Instruments (continued)**
Fair value hierarchy consists of three levels:
- x Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liaͲ bilities that can be accessed on measurement date.
- x Level 2 inputs are either directly or indirectly observable inputs other than quoted prices in Level 1. Those include quoted prices for similar assets or liabilities in active markets, or quoted prices on similar or identical assets and liabilities in nonͲactive markets, or inͲ puts that are derived principally from observable market data.
- x Level 3 inputs are unobservable inputs for the asset or liability and are used to the exͲ tent that observable inputs are not available on measurement date.
The only financial instrument NML held at December 31, 2020 is an investment in Blackrock LiͲ quidity Treasury Trust Fund, which is held at the Bank of America. NML treats this investment as a cash equivalent since 100% of the Fund's total assets are in cash and highly liquid shortͲterm U.S. Treasury obligations, such as U.S. Treasury bills and notes. NML's investment is a Level 1 inͲ vestment.
#### **I. Income Taxes**
NML is a single member LLC and is included in the tax return of the Parent. No provision for inͲ come taxes has been made in the accompanying financial statements as such liabilities, if any, are the responsibility of the Parent. As of December 31, 2020, management believes that it has taken no uncertain tax provisions under ASC 740, and accordingly, no liability has been recorded.
#### **J. Related Party Transactions**
NML has a Transfer Pricing Agreement with its Parent regarding cost reimbursement.
As discussed in Note D, NML has a receivable of \$425,019 due from an affiliate that relates to service fee intergroup income.
#### **K. Commitments, Contingencies and Guarantees**
To the best of its knowledge, NML does not currently have liabilities for contingencies where there is an exposure that, if fully analyzed, would indicate that it would be both probable that a liability has been incurred and the amount of loss could be reasonably estimated.
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#### **L. Net capital requirements**
As a registered brokerͲdealer, NML is subject to the requirements of the Uniform Net Capital Rule (Rule 15c3Ͳ1) under the Securities Exchange Act of 1934. As a member firm of FINRA, NML is subject to FINRA's capital requirements, which are substantially the same as Rule 15c3Ͳ1. UnͲ der the Rule, NML is required to maintain a minimum net capital, as defined, equal to USD 250,000.
| USD | December
31,
2020 |
|------------------------------------|-------------------------|
| Net
Capital | 22,242,697 |
| Less
required
Net
Capital | 250,000 |
| Excess
Net
Capital | 21,992,697 |
#### **D͘ Risks and Uncertainties**
COVIDͲ19 Global Pandemic: COVIDͲ19, to date, has not materially impacted the Company's dayͲtoͲday operations. However, continuing uncertainty with respect to global economic activity may negatively impact the Company's revenue opportunities.
#### **E͘ Subsequent events**
The Company has evaluated subsequent events through February 22, 2021. No material events w ere identified that would require recognition or disclosure in the financial statement.
Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.