# CBOE FIXED INCOME MARKETS, LLC X-17A-5 (2024-02-22) — Broker-dealer annual report - Company: CBOE FIXED INCOME MARKETS, LLC - Form: X-17A-5 - Filed: 2024-02-22 - Period: 2023-12-31 - Accession: 0001871012-24-000001 - CIK: 1871012 - File #: 8-70752 - Type: Broker-dealer - Material weakness: No - Auditor: KPMG LLP - Auditor location: Kansas City, MO - Contact: Allen Wilkinson - Phone: 913-205-4512 - Email: awilkinson@cboe.com - Website: cboe.com - Signed by: Allen Wilkinson (Vice President) Original filing: https://www.sec.gov/Archives/edgar/data/1871012/000187101224000001/SEC_Pub_CFIM_2023.pdf --- {0}------------------------------------------------ **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549** OMB APPROVAL OMB Number: ϯϮϯϱͲϬϭϮϯ Expires: EŽǀ͘ϯϬ͕ϮϬϮϲ Estimated average burden hours per response: # **ANNUAL REPORTS FORM X-17A-5 PART III** SEC FILE NUMBER 8-70752 **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 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ AND ENDING \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 01/01/2023 12/31/2023 MM/DD/YY MM/DD/YY **A. REGISTRANT IDENTIFICATION** #### NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Cboe Fixed Income Markets, LLC TYPE OF REGISTRANT (check all applicable boxes): ܆ Broker-dealer ܆ Security-based swap dealer ܆ Major security-based swap participant ܆ Check here if respondent is also an OTC derivatives dealer ■ ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.) #### \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 17 STATE STREET, 31ST FLOOR | | | (No. and Street) | | | |-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|----------------------------------------------------------------------------------------------------------|---------------------|------------| | NEW
YORK
_____________________________________________________________________________________ | | NY | | 10004 | | (City) | | (State) | | (Zip Code) | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | ALLEN
WILKINSON
_____________________________________________________________________________________ | (913)205-4512 | | awilkinson@cboe.com | | | (Name) | (Area Code – Telephone Number) | | (Email Address) | | | | B. ACCOUNTANT IDENTIFICATION | | | | | INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*
KPMG
LLP
_____________________________________________________________________________________ | | (Name – if individual, state last, first, and middle name) | | | | 1000
WALNUT
ST
SUITE
_____________________________________________________________________________________ | 1100 | KANSAS
CITY | MO | 64106 | | (Address) | (City) | | (State) | (Zip Code) | | 10/20/2003 | | PCAOB
ID#185
_____________________________________________________________________________________ | | | | (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 240.17a-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.** {1}------------------------------------------------ | ALLEN WILKINSON | swear (or affirm) that, to the best of my knowledge and belief, the | |---------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------| | tinancial report pertaining to the firm of Cboe Fixed Income Markets, LLC | as of | | 12/31 | , 2 023 | | | 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. | | | | NOTARY PUBLIC - State of Kansas
Signature:
ANGELA SMITH
My Appt Expires O2-21-21
Title:
Vice President, Cboe Fixed Income Markets, LLC | - - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ # **Cboe Fixed Income Markets, LLC** Financial Statement (With Report of Independent Registered Public Accounting Firm Thereon) As of and for the year ended December 31, 2023 {3}------------------------------------------------ ![](_page_3_Picture_0.jpeg) KPMG LLP Suite 1100 1000 Walnut Street Kansas City, MO 64106-2162 ## **Report of Independent Registered Public Accounting Firm** To the Member of Cboe Fixed Income Markets, LLC: #### *Opinion on the Financial Statement* We have audited the accompanying statement of financial condition of Cboe Fixed Income Markets, LLC (the Company) as of December 31, 2023, and the related notes (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, 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 this 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 presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion. ![](_page_3_Picture_9.jpeg) We have served as the Company's auditor since 2022. Kansas City, Missouri February 22, 2024 {4}------------------------------------------------ #### **Cboe Fixed Income Markets, LLC** ### Statement of Financial Condition December 31, 2023 | Assets | | |---------------------------------------|-----------------| | Cash | \$
6,489,668 | | Deposits with clearing counterparty | 250,000 | | Equipment, net | 120,356 | | Other assets | 35,569 | | Total assets | \$
6,895,593 | | Liabilities and Member's Equity | | | Liabilities: | | | Payable to affiliate | \$
316,976 | | Total liabilities | 316,976 | | Member's equity: | | | Total member's equity | 6,578,617 | | Total liabilities and member's equity | \$
6,895,593 | See accompanying notes to financial statement. {5}------------------------------------------------ ## **Cboe Fixed Income Markets, LLC** Notes to Financial Statement As of December 31, 2023 #### **(1) Nature of Business** Cboe Fixed Income Markets, LLC (the Company) was formed as a Delaware Limited Liability Company on May 25, 2021. On July 6, 2022, the Company registered as a broker-dealer with the Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA). The Company is an indirect, wholly-owned subsidiary of Cboe Global Markets, Inc. (the Parent). The primary business activity of the Company is to develop and operate a U.S. Treasury securities trading system for its participants, each of which must be a broker-dealer registered with the SEC pursuant to Section 15 of the Exchange Act. The Company operates under a (k)(2)(ii) exemption from Rule 15c3-3 and clears all customer transactions through an unaffiliated broker-dealer on a fully-disclosed basis. The Company executed its first trade in October 2023. ## **Summary of Significant Accounting Policies** #### *D Principles of Accounting* The financial statement LV presented in conformity with generally accepted accounting principles in the United States (GAAP) as established by the Financial Accounting Standards Board (FASB). References to GAAP in these footnotes are to the FASB Accounting Standards Codification (ASC or Codification). #### *E Use of Estimates* The preparation of financial statement in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as well as disclosure of the amounts of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. ## *F Cash* The Company maintains cash at a financial institution that, at times, may be in excess of the federal insurance limits. #### *G Restricted Cash* The Company maintains a cash balance deposited with the clearing counterparty used for the clearing of customer transactions to satisfy obligations of the Company. #### *H Income Taxes* The Company is included in the consolidated federal income tax return filed by the Parent. As the Company is a legal entity that is not subject to tax, there is no allocation of the Parent's current and deferred tax expense in the Company's financial statement. {6}------------------------------------------------ ## **Cboe Fixed Income Markets, LLC** Notes to Financial Statement As of December 31, 2023 ## *I Equipment, net* Equipment, net is stated at cost less accumulated depreciation. The equipment consists of network, server, and storage equipment, as well as data centers. Depreciation is computed using the straight-line method over the estimated lives of the assets. #### *J Other assets* Other assets consist of prepaid expenses. #### **(3) Net Capital Requirements** The Company is subject to the SEC Uniform Net Capital Rule (SEC Rule 15c3-1), which requires the maintenance of minimum net capital. The SEC's requirement also provides that equity capital may not be withdrawn or cash dividends paid if certain minimum net capital requirements are not met. The Company computes its net capital requirements under the basic method provided for in SEC Rule 15c3-1. SEC Rule 15c3-1 requires the Company to maintain net capital equal to the greater of 6-2/3% of aggregate indebtedness items, as defined, or \$5,000. At December 31, 2023, the Company had net capital of \$6,422,692, which was \$6,401,560 in excess of its required net capital of \$21,132. The ratio of aggregate indebtedness to net capital was 0.05 to 1. #### **(4) Related Party Transactions** The Company is a party to a Master Intercompany Services & License Agreement (the Agreement) with the Parent. Pursuant to this Agreement, certain affiliates of the Parent provide shared services to the Company such as accounting and payroll. Costs for services provided and other expenses, such as technology costs, professional fees, and facility costs are allocated to the Company from the other affiliates in accordance with the Agreement. The payable to affiliate was \$316,976 as of December 31, 2023. The Company settles all activity with the other affiliates through the Parent annually or as needed. #### **(5) Commitments and Contingencies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¶VIXOO\GLVFORVHGFOHDULQJEURNHU0LUDH\$VVHW6HFXULWLHV86\$ ,QF0LUDH IDLOVWR SHUIRUPDQ\RILWVFRQWUDFWXDOREOLJDWLRQVWRWKH&RPSDQ\0LUDHFOHDUVDOO86JRYHUQPHQW VHFXULWLHVWUDQVDFWLRQVH[HFXWHGRQWKH&RPSDQ\¶VSODWIRUP0LUDHD6(&UHJLVWHUHGEURNHUGHDOHU DQGDPHPEHURI'7&&¶V)L[HG,QFRPH&OHDULQJ&RUSRUDWLRQ),&& \*RYHUQPHQW6HFXULWLHV 'LYLVLRQ\*6' DFWVDVWKH&RPSDQ\¶VIXOO\GLVFORVHGFRXQWHUSDUW\WRERWKSDUWLFLSDQWVEX\HUDQG VHOOHU RQDQ\PDWFKHGRUGHUVRQWKHV\VWHPUHVXOWLQJLQWZRRIIVHWWLQJWUDGHVIRU0LUDH \$OO SDUWLFLSDQWVRIWKHSODWIRUPDUHUHTXLUHGWREHUHJLVWHUHGEURNHUGHDOHUVDQGPHPEHUVRI),&&¶V \*6'7KH&RPSDQ\EHOLHYHVWKDWVXFKSRWHQWLDOFRXQWHUSDUW\FUHGLWULVNH[SRVXUHLVUHPRWH KRZHYHUVXFKULVNLVSRVVLEOH {7}------------------------------------------------ ## **Cboe Fixed Income Markets, LLC** Notes to Financial Statement As of December 31, 2023 ## **(6) Equipment, net** Equipment consisted of the following as of December 31, 2023: | Equipment | \$
582,632 | |-------------------------------|---------------| | Less accumulated depreciation | (462,276) | | Equipment, net | \$
120,356 | | | | #### **(7) Subsequent Events** The Company performed an evaluation of events that have occurred subsequent to December 31, 2023, through February 22, 2024, which is the date the financial statement wDV available to be issued. There have been no subsequent events that have occurred during such period that would require disclosure in the financial statement or would be required to be recognized in the financial statement as of and for the year ended December 31, 2023. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.