# NEWMARK SECURITIES, LLC X-17A-5 (2025-03-03) — Broker-dealer annual report - Company: NEWMARK SECURITIES, LLC - Form: X-17A-5 - Filed: 2025-03-03 - Period: 2024-12-31 - Accession: 0001818003-25-000003 - CIK: 1818003 - File #: 8-70554 - Type: Broker-dealer - Material weakness: No - Auditor: Ernst & Young LLP - Auditor location: New York, NY - Contact: Alexandra Luehs - Phone: 12128294950 - Email: kpaulson@cantor.com - Website: cantor.com - Signed by: Kenneth Paulson (Chief Financial Officer) Original filing: https://www.sec.gov/Archives/edgar/data/1818003/000181800325000003/NewmarkBS.pdf --- {0}------------------------------------------------ # NEWMARK # **NEWMARK SECURITIES, LLC** S TATEMENT OF F INANCIAL C ONDITION NEWMARK SECURITIES, LLC December 31, 2024 With Report of Independent Registered Public Accounting Firm {1}------------------------------------------------ #### **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** # **ANNUAL REPORTS FORM X-17A-5 PART III** **FACING PAGE** OMB Number: 3235-0123 Expires: Nov 30, 2026 Estimated average burden hours per response: 12 OMB APPROVAL SEC FILE NUMBER 8-70554 | Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934 | | | | |-----------------------------------------------------------------------------------------------------------|------------------------------------------------------------|--------------------------------------|---------------------| | FILING
FOR
THE
PERIOD | BEGINNING
01/01/24 | AND
ENDING | 12/31/24 | | | MM/DD/YY | | MM/DD/YY | | | REGISTRANT
A. | IDENTIFICATION | | | NAME
OF
FIRM:
Newmark Securities, LLC | | | | | TYPE
OF
REGISTRANT
(check | all
applicable
boxes): | | | | ;Broker-dealer
տSecurity-based
܆ Check here if respondent is also an OTC derivatives dealer | swap
dealer | տMajor
security-based | swap participant | | ADDRESS
OF
PRINCIPAL | PLACE OF
BUSINESS: | (Do not
use a
P.O. box
no.) | | | 125 PARK AVENUE | | | | | | (No. and Street) | | | | New York | New York | | 10017 | | (City) | (State) | | (Zip Code) | | PERSON
TO
CONTACT
WITH | REGARD TO
THIS | FILING | | | Kenneth Paulson | 212-294-7922 | | KPaulson@cantor.com | | (Name) | (Area Code – Telephone Number) | | (Email Address) | | | ACCOUNTANT
B. | IDENTIFICATION | | | INDEPENDENT
PUBLIC
Ernst & Young LLP | ACCOUNTANT
whose
reports | are
contained
in
this | filing* | | | (Name – if individual, state last, first, and middle name) | | | | | | | | | One Manhattan West, 401 9th Avenue
(Address) | New York
(City) | New York
(State) | 10001
(Zip Code) | | 10/20/2003 | | | 42 | #### **FOR OFFICIAL USE ONLY** (Date of Registration with PCAOB)(if applicable) (PCAOB Registration Number, if applicable) \* 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 17CFR 240.17a-5(e)(1)(ii), if applicable. {2}------------------------------------------------ #### AFFIRMATION **.\FFTRMA TTON** I, Kenneth Paulson, affirm that, to the best of my knowledge and belief, the accompanying statement of financial condition pertaining to Newmark Securities, LLC (the "Company"), as of December 31, 2024, is 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. I Kenneth Paulson, affirm that, to the best of my knowledge and belief, the accompanying statement of financial condition pertaining to Newmark Securities, LLC (the "Company"), as of December 31 , 2024 is 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. Kenneth Paulson Chief Financial Officer Kenneth Paulson Chief Financial Officer On March 3, 2025, before me, the undersigned notary public, personally appeared Kenneth Paulson, personally known to me to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity. and that by his signature on the instru t, the individual executed the instrument. On March 3, 2025, before me, the undersigned notary public, personally appeared Kenneth Paulson, personally known to me to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instru t, the individual executed the instrument. Notarv Public otarv Publir Lissette Martinez Notary Public, State of New York Reg. NO. 01 MA6356880 Qnlified in Queens County My Commission Expires 04/10/2025 **Lissette Martinez Notary Public, State of New York Reg. NO. 01 MA6356880 Quallfled In Queens County My CommlUian Expirel 04/1012025** {3}------------------------------------------------ #### **This filing\*\* contains (check all applicable boxes):** ; Statement of Financial Condition. ; Notes to Statement of Financial Condition. Statement of Operations. Statement of Cash Flows. Statement of Changes in Partners' Capital. Statement of Changes in Subordinated Borrowings. Notes to Financial Statements. Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable. 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. 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. Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3. Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3. 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. Summary of financial data for subsidiaries not consolidated in the statement of financial condition. ; Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable. Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable. ; Independent public accountant's report based on an examination of the statement of financial condition. 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. 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. 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. Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable. 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). Other: A copy of the SIPC Supplemental Report. Statement of Cleared Swaps Customer Segregation Requirements and Funds in Cleared Swaps Customer Accounts Under 4D(F) of the Commodity Exchange Act. Schedule of Segregation Requirements and Funds in Segregation for Customers Trading on U.S. Commodity Exchanges. Computation of CFTC Minimum Net Capital Requirement. Schedule of Segregation Requirements and Funds in Segregation for Customers' Dealer Options Accounts. Statement of Secured Amounts and Funds Held in Separate Accounts for Foreign Futures and Foreign Options Customers Pursuant to Commission Regulation 30.7. Supplementary Report of Independent Registered Public Accounting Firm on Internal Control Required by CFTC Regulation 1.16. *\*\*To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-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: +1 212 773 3000 Fax: +1 212 773 6350 ey.com #### **Report of Independent Registered Public Accounting Firm** To the Member and Officers of Newmark Securities, LLC #### **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Newmark Securities, LLC (the Company) as of December 31 , 2024 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 , 2024, 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 2021. March 3, 2025 {5}------------------------------------------------ ## Statement of Financial Condition December 31, 2024 *(In Thousands)* | \$
1,052 | |-------------| | 11 | | \$
1,063 | | | | 89 | | 22 | | 111 | | 952 | | 952 | | \$
1,063 | | \$ | *See notes to statement of financial condition* {6}------------------------------------------------ # Notes to Statement of Financial Condition December 31, 2024 *(In Thousands)* # **1. General and Summary of Significant Accounting Policies** **Description of Business** – Newmark Securities, LLC (the "Company"), a Delaware Limited Liability Company, is a wholly owned subsidiary of Newmark Partners, L.P. (the "Partnership"), and an indirect subsidiary of Newmark Group, Inc. (collectively with its affiliates "Newmark"), which is controlled by Cantor Fitzgerald, L.P. (collectively with its affiliates "Cantor"). The Company is a registered broker-dealer with the Securities and Exchange Commission ("SEC"), and a member of the Financial Industry Regulatory Authority ("FINRA") and the Securities Investor Protection Corporation ("SIPC"). The Company provides real estate related advisory services to institutional clients. The Company's activity is limited to acting as agent on real estate related transactions and collecting advisory and success fees, primarily for private equity and private debt securities. The Company does not handle any customer funds or securities. **Basis of Presentation** – The statement of financial condition is prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). **Use of Estimates** – Management makes estimates and assumptions that affect the reported amounts of the assets and liabilities, revenues 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. The Partnership files federal, state and local partnership returns and is subject to the Unincorporated Business Tax ("UBT") in New York City and Pass-Through Entity ("PE") Tax in Connecticut. The Company has not elected to push down and allocate current and deferred tax expense from the Partnership, and therefore no provision for income tax is required to be included in accordance with the requirements of Accounting Standards Codification ("ASC") 740, *Income Taxes*. **Segment Information** – The Company currently operates in one reportable segment, real estate services. See Note 5 - Segment Information. {7}------------------------------------------------ # Notes to Statement of Financial Condition (continued) December 31, 2024 *(In Thousands)* #### **1. General and Summary of Significant Accounting Policies (continued)** **Recently Adopted Accounting Pronouncement** – In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards update ("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 requires a public entity to disclose significant segment expenses and other segment items on an annual basis. Public entities with a single reportable segment are required to provide the new disclosures and all the disclosures previously required under ASC 280. The Company adopted the standard on the required effective date for the statement of financial condition issued for the annual reporting periods beginning on January 1, 2024. The adoption of the new guidance did not have an impact on the Company's statement of financial condition. **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. {8}------------------------------------------------ # Notes to Statement of Financial Condition (continued) # December 31, 2024 #### *(In Thousands)* ### **1. General and Summary of Significant Accounting Policies (continued)** In November 2024, the FASB issued ASU No. 2024-03, *Income Statement—Reporting Comprehensive Income— Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.* The standard improves financial reporting and responds to investor input that additional expense detail is fundamental to understanding the performance of an entity, assessing its prospects for future cash flows, and comparing its performance over time and with that of other entities. The new guidance requires public business entities to disclose in the notes to statement of financial condition specified information about certain costs and expenses at each interim and annual reporting period, including the amounts of employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains those expenses. Specified expenses, gains or losses that are already disclosed under existing U.S. GAAP will be required by the ASU to be included in the disaggregated income statement expense line item disclosures, and any remaining amounts will need to be described qualitatively. Separate disclosures of total selling expenses and an entity's definition of those expenses will also be required. The new guidance will become effective for the Company's statement of financial condition issued for annual reporting periods beginning on January 1, 2027, 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, 2024, 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. {9}------------------------------------------------ # Notes to Statement of Financial Condition (continued) # December 31, 2024 #### *(In Thousands)* ### **3. Related Party Transactions** Cantor and Newmark 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 overheads and fixed assets, accounting, treasury, operations, human resources, legal and regulatory, audit, and technology services. For the year ended December 31, 2024, the Company was charged for such services, and the unpaid balances are included in Payables to related parties in the Company's statement of financial condition. #### **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 basic method, which requires the maintenance of minimum net capital equal to the greater of \$5 or 6-2/3% of aggregate indebtedness. At December 31, 2024, the Company had net capital of \$941, which was \$934 in excess of its required net capital. #### **5. Segment Information** The Company offers its services in the United States. The Company's operations consist of one reportable segment, real estate services, because the Company is managed on a consolidated basis. The primary activities of the Company's real estate services segment include acting as agent on real estate related transactions and collecting advisory and success fees, primarily for private equity and private debt securities. As of December 31, 2024, the Company has identified Newmark's Executive Chairman as its chief operating decision maker ("CODM"). Net Income is the measure of segment profit most consistent with U.S. GAAP that is regularly reviewed by the CODM. As of December 31, 2024, the Company had total assets of \$1,063. See the Company's statement of financial condition for additional information. #### **6. Subsequent Events** The Company has evaluated subsequent events through the date the statement of financial condition was issued. There have been no material subsequent events that would require recognition in the statement of financial condition or disclosure in the notes to statement of financial condition. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.