# IMC EXECUTION SERVICES LLC X-17A-5 (2025-02-28) — Broker-dealer annual report - Company: IMC EXECUTION SERVICES LLC - Form: X-17A-5 - Filed: 2025-02-28 - Period: 2024-12-31 - Accession: 0001776430-25-000001 - CIK: 1776430 - File #: 8-70343 - Type: Broker-dealer - Material weakness: No - Auditor: PricewaterhouseCoopers, LLC - Auditor location: Chicago, IL - Contact: Paul Nowicki - Phone: 3122047442 - Email: paul.nowicki@imc.com - Website: imc.com - Signed by: Paul Nowicki (CFO) Original filing: https://www.sec.gov/Archives/edgar/data/1776430/000177643025000001/Public_2024_IMCX.pdf --- {0}------------------------------------------------ # IMC Execution Services LLC Statement of Financial Condition December 31, 2024 Available for Public Inspection {1}------------------------------------------------ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ## ANNUAL REPORTS FORM X-17A-5 PART III | OMB APPROVAL | |---------------------------| | OMB Number: 3235-0123 | | Expires: Nov. 30, 2026 | | Estimated average burden | | 12
hours per response: | SEC FILE NUMBER 8-70343 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 01/01/2024 FILING FOR THE PERIOD BEGINNING 01/01/2024 MM/DDVY MM/DD/YY 12/31/2024 A. REGISTRANT IDENTIFICATION ## NAME OF FIRM: IMC Execution Services LLC TYPE OF REGISTRANT (check all applicable boxes): □ Broker-dealer □ Check here if respondent is also an OTC derivatives dealer ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) ## 233 South Wacker Drive, #4300 | | (No. and Street) | | | |----------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------|--------------------------------------------| | Chicago | Illinois | | 60606 | | (City) | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | Paul Nowicki | (312) 204-7442 | | paul.nowicki@imc.com | | (Name) | (Area Code - Telephone Number) | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
PricewaterhouseCoopers, LLP | (Name - if individual, state last, first, and middle name) | | | | One North Wacker Drive | Chicago | Illinois | 60606 | | (Address) | (City) | (State) | (Zip Code) | | October 20, 2003 | | 238 | | | (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 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 240.17a-5(e)(1)(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 OMB control number. {2}------------------------------------------------ #### OATH OR AFFIRMATION | Paul Nowicki | , swear (or affirm) that, to the best of my knowledge and belief, the | | |-----------------------------------------------------------------------|-----------------------------------------------------------------------|--| | financial report pertaining to the firm of IMC Execution Services LLC | | | , 2024, is true and correct. I further swear (or affirm) that neither the company nor any 12/31 - - - - - - - - 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 ![](_page_2_Figure_3.jpeg) Signature: Title: Chief Financial Officer Notary Rublic ### 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 income 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. - [ - □ (i) Computation of tangible net worth under 17 CFR 240.18a-2. - □ (j) 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. - [ (I) 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. - □ (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-2, 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 240.17a-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. - [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). - O (z) Other: \*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18c-7(d)(2), as applicable. {3}------------------------------------------------ | IMC Execution Services LLC
Index
December 31, 2024 | | |----------------------------------------------------------|---------| | | Page(s) | | Report of Independent Registered Public Accounting Firm | 1 | | Statement of Financial Condition | | | | | | Statement of Financial Condition | 2 | {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) ### Report of Independent Registered Public Accounting Firm ### Opinion on the Financial Statement – Statement of Financial Condition ### Basis for Opinion {5}------------------------------------------------ ## IMC Execution Services LLC Statement of Financial Condition December 31, 2024 | Assets | | |----------------------------------------|------------------| | Cash | \$
4,944,738 | | Receivable from clearing broker | 5,579,124 | | Commissions receivable | 707,284 | | Other assets | 283,023 | | Right of Use Assets - Operating | 603,829 | | Total assets | \$
12,117,998 | | | | | Liabilities and Member's Capital | | | Liabilities | | | Accrued compensation | \$
3,152,148 | | Payable to affiliates | 608,166 | | Right of Use Liabilities - Operating | 697,480 | | Accounts payable and accrued expenses | 361,646 | | Total liabilities | 4,819,440 | | Member's capital | 7,298,558 | | Total liabilities and member's capital | \$
12,117,998 | The accompanying notes are an integral part of the statement of financial condition. {6}------------------------------------------------ ### Organization 1. Organization and Summary of Significant Accounting Policies IMC Execution Services LLCs (the "Company") primary business is to engage as an options broker and as a non-exchange member arranging for transactions in listed securities by an exchange member. Effective January 1, 2024, IMC B.V. was fully acquired by IMC Global Holdings, LLC (the "Ultimate Parent"). The Company is a wholly owned subsidiary of Stockbridge, Inc (the "Parent") which is ultimately a wholly owned subsidiary of the Ultimate Parent. The Company is an Illinois limited liability company established on October 11, 2018. In accordance with regulations under the Securities Exchange Act of 1934, the Company is registered as a broker- dealer with the Securities and Exchange Commission (the SEC). The Company does not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers and does not carry or trade accounts for customers or proprietary accounts of other broker dealers. As such, the Company effects transactions only with other registered broker dealers and other exchange members. The Company is a member of the Financial Industry Regulatory Authority, Inc. and the Securities Investor Protection Corporation. ### Cash The Company maintains cash in bank deposit accounts that, at times, may exceed federally insured limits. #### Income Taxes For purposes of federal and state income taxes, the Company's status as a separate tax entity is disregarded. As such, the operations of the Company are treated as held directly by its sole member, the Parent. Accordingly, the Parent is responsible for reporting the Company's taxable income or loss and has elected not to push down the effects of income taxes to the Company. There are no tax sharing arrangements between the Company and the Parent. Additionally, there are no obligations for the Company to fund the tax liabilities of the Parent. The Company is included in the consolidated federal and state income tax returns filed by the Parent. #### Receivable from Clearing Broker Receivable from clearing broker on the statement of financial condition includes cash held on deposit at the clearing broker. ### Other Assets Other assets on the statement of financial condition includes prepayments and receivables from third parties. {7}------------------------------------------------ ## IMC Execution Services LLC Notes to Statement of Financial Condition December 31, 2024 ### Use of Estimates The preparation of the statement of financial condition in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the statement of financial condition. Actual results may differ significantly from those estimates. Financial assets measured at amortized cost are to be presented at the net amount expected to be collected utilizing the current expected credit loss methodology to estimate expected credit losses over the remaining expected life of the financial assets. Expected credit losses are measured based on historical experience, current conditions and forecasts that impact the collectability of the amount. The guidance only impacts the Company's financial instruments recorded at amortized cost such as receivable from brokers, dealers, and clearing organizations. This does not have a material impact on the Company's financial condition or regulatory requirements. ### Segment Reporting The Company operates as a single line of business that engages as an options broker and as a nonexchange member arranging for transactions in listed securities by an exchange member. The Company has identified its Chief Executive Officer as the Chief Operating Decision Maker (CODM), who uses the statement of financial condition information provided herein in order to make operational decisions for the Company. The Companys 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 statement of financial condition reflects the operating single segment results as of December 31, 2024. 2. Risk Management In the normal course of business, the Company is subject to various risks, including, but not limited to, market risk, credit risk, and other risks. The Company attempts to monitor and manage these risks on an ongoing basis. Market risk is the potential for changes in the value of a financial instrument and the securities collateral pledged. Categories of market risk include, but are not limited to, exposures to equity prices, interest rates, commodity prices, credit prices, and currency prices. Market risk is directly impacted by the volatility and liquidity of the markets in which the underlying financial instruments are traded. The Company attempts to manage market risk in various ways, including through diversifying exposures and placing limitations on position sizes. The ability to manage market risk may be constrained by changes in liquidity conditions and fast changes in the relative prices or volatilities of financial instruments. Credit risk is the risk of losses due to the failure of a counterparty to perform according to the terms of a contract. Risks may arise associated with the Companys transactions with counterparties as a result of nonperformance by the counterparties. The Company does not proprietarily trade securities for its own accounts; however, if in the course of executing customer transactions an error is made, it is cleared through the Companys clearing broker. In the event this counterparty does not fulfill its obligation, the Company may be exposed to risk. The risk of default also depends on the creditworthiness of the counterparties to these transactions. It is the Companys policy to review, as necessary, the credit standing of each counterparty. Other risks include the cash balances held at various major U.S. financial institutions, which typically exceed Federal Deposit Insurance Corporation insurance coverage, also subject the Company to a concentration of credit risk. The Company attempts to mitigate the credit risk that exists with the deposits in excess of insured amounts by regularly monitoring the credit ratings of such financial institutions. {8}------------------------------------------------ ## IMC Execution Services LLC Notes to Statement of Financial Condition December 31, 2024 Legal, tax and regulatory changes could occur during the term of the Company that may adversely affect the Company. As a registered broker-dealer, the Company is subject to comprehensive statutes, regulations and other requirements. The effect of any future regulatory change or other regulatory action by any regulator or self-regulatory organization, whether in the ordinary course or the result of an extraordinary market event, could be significant. 3. Leases The Company has an operating lease for certain office space under a noncancelable lease expiring in 2027. The Company's lease has a remaining lease term of 2.9 years. The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the statement of financial condition. All other operating leases are recorded on the statement of financial condition with right-of-use assets representing the right to use the underlying asset for the lease term and lease liability representing the obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term and include options to extend or terminate the lease when they are reasonably certain to be exercised. The right-of-use assets represent the lease liabilities, plus any lease payments made at or before the commencement date, less any lease incentives received. If a lease does not provide an implicit rate, the Company uses its incremental secured borrowing rate, adjusted for the maturity date, based on information available at the commencement date in determining the present value of lease payments. Lease agreements with lease and non-lease components are accounted for as a single lease component. During the year, the Company amended one office space lease. On December 31, 2024, right-of-use assets and lease liabilities were \$603,829 and \$697,480, respectively, representing the present value of future lease payments with terms greater than 12 months related to an office space lease. | | Right of Use
Assets
Operating | | Right of Use
Liabilities
Operating | | |--------------------------------------|-------------------------------------|-----------|------------------------------------------|-----------| | Beginning balance, December 31, 2023 | \$ | 113,237 | \$ | 127,005 | | Amended office lease | | 697,002 | | 697,002 | | Amortization | | (206,410) | | (126,527) | | Ending balance December 31, 2024 | \$ | 603,829 | \$ | 697,480 | Future minimum lease payments as of December 31, 2024 are as follows: | | Office | | |------------------------------------|---------------|---------------| | Year ending December 31, 2024 | Lease | Total | | 2025 | \$
257,339 | \$
257,339 | | 2026 | 262,486 | 262,486 | | 2027 | 245,016 | 245,016 | | 2028 | - | - | | 2029 | - | - | | Thereafter | - | - | | Total lease payments | \$
764,841 | \$
764,841 | | Less: Interest | 67,361 | 67,361 | | Present value of lease liabilities | \$
697,480 | \$
697,480 | {9}------------------------------------------------ The weighted average remaining lease term and discount rate as of December 31, 2024 were as follows: | Weighted average remaining lease term (years) - Operating lease | 2.92 | |-----------------------------------------------------------------|-------| | Weighted average discount rate - Operating lease | 6.20% | 4. Contingent Liabilities In the normal course of business, the Company may enter into contracts that contain a number of representations and warranties which may provide for general or specific indemnifications. The Companys exposure under these contracts are not currently known as any such exposure would be based on future claims which could be made against the Company. There have been no such claims since the inception of the Company. Management does not anticipate any such claims and expects any risk of loss to be remote. As such, the Company believes the amount for which it could be liable, if any, will not have a material adverse effect on the statement of financial condition. 5. Brokerage, Clearance, and Exchange Fees 6. Related Parties At December 31, 2024, the amounts due to counterparties in relation to brokerage, clearance, and exchange fees, recorded net by counterparty, were \$298,275 in accounts payable and accrued expenses on the statement of financial condition. The Company maintains written Service Level Agreements with affiliates. Agreements between the Company and affiliates may be amended, modified, supplemented, or restated in the normal course of business. The services primarily include the usage of trading infrastructure and usage of trading resources. In addition, the Company receives services for marketing and communication, and support services. Reimbursement under these agreements occurs on a monthly basis. 7. Net Capital Requirements At December 31, 2024, total payable to affiliates were \$3,760,314 to Stockbridge, Inc. affiliates, recorded in payable to affiliates and accrued compensation on the statement of financial condition. The Company is subject to the net capital requirements of the Net Capital Rule. The Company computes its net capital requirement under the alternative method provided for in Rule 15c3-1, which requires that the Company maintain net capital equal to the greater of \$250,000 or 2% of aggregate debit items, as defined. At December 31, 2024, the Company had net capital of \$9,943,220 which was \$9,693,220 in excess of its required net capital of \$250,000. 8. Subsequent Events The Company has performed an evaluation of subsequent events through February 27, 2025, which is the date the statement of financial condition was available to be issued and noted no subsequent events requiring disclosure. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.