# FAST EXECUTION SERVICES LLC X-17A-5 (2024-09-04) — Broker-dealer annual report - Company: FAST EXECUTION SERVICES LLC - Form: X-17A-5 - Filed: 2024-09-04 - Period: 2024-06-30 - Accession: 0002013816-24-000054 - CIK: 1797958 - File #: 8-70471 - Type: Broker-dealer - Material weakness: No - Auditor: Michael Coglianese CPA, P.C. - Auditor location: Bloomingdale, IL - Contact: Vrinda Arora - Phone: 212-668-8700 - Email: varora@acisecure.com - Website: acisecure.com - Signed by: Joel Zawko (CEO) Original filing: https://www.sec.gov/Archives/edgar/data/1797958/000201381624000054/fastexpub.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 8-70068 **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 \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ MM/DD/YY MM/DD/YY **A. REGISTRANT IDENTIFICATION** NAME OF FIRM: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 01/01/2023 06/30/2024 Fast Execution Services 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.) ## \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 425 S FINANCIAL PLACE SUITE 3650 | | | (No. and Street) | | | | |---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----|--------------------------------------------|---------|----------------------|--| | Chicago
_____________________________________________________________________________________ | | IL | | 60605 | | | (City) | | (State) | | (Zip Code) | | | PERSON TO CONTACT WITH REGARD TO THIS FILING | | | | | | | Vrinda
Arora
_____________________________________________________________________________________ | | (212)668-8700 | | varora@acisecure.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) | | | | | | | 125
E.
Lake
Street,
Suite
_____________________________________________________________________________________ | 303 | Bloomingdale | IL | 60108 | | | (Address) | | (City) | (State) | (Zip Code) | | | 10/20/2009
_____________________________________________________________________________________ | | | 3874 | | | | (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}------------------------------------------------ ![](_page_1_Figure_4.jpeg) | Signature: | | | |---------------|--|--| | Tifle:
CEO | | | - - - - - - - - - - - - - - - - - - - - - - - - - - {2}------------------------------------------------ # **Fast Execution Services, LLC.** **Financial Statement and Supplementary Information** **For the period January 1, 2023 through June 30, 2024** **Together with the report of Independent Public Registered Accounting Firm** This report is pursuant to Rule 17a-5(e)(3) under the Securities Exchange Act of 1934 as a Public Document {3}------------------------------------------------ ### **Contents** | For the period January 1, 2023 through June 30, 2024 | | |---------------------------------------------------------|---| | Report of Independent Registered Public Accounting Firm | 1 | ### **Financial statement** | Statement of Financial Condition | 2 | |----------------------------------|---| | | | Notes to Financial statement 3-6 {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) # **Report of Independent Registered Public Accounting Firm** To the Members of Fast Execution Services LLC ## **Opinion on the Financial Statement** We have audited the accompanying statement of financial condition of Fast Execution Services LLC as of June 30, 2024, and the related notes (collectively referred to as the financial statement). In our opinion, the statement of financial condition presents fairly, in all material respects, the financial position of Fast Execution Services LLC as of June 30, 2024 in conformity with accounting principles generally accepted in the United States of America. # **Basis for Opinion** This financial statement is the responsibility of Fast Execution Services LLC's management. Our responsibility is to express an opinion on Fast Execution Services LLC'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 Fast Execution Services LLC 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 Fast Execution Services LLC's auditor since 2024. Bloomingdale, IL August 30, 2024 {5}------------------------------------------------ Statement of Financial Condition June 30, 2024 #### **ASSETS** | Cash
Securities owned, at fair value | \$
2,749,227
- | |-----------------------------------------|----------------------| | Due From Broker | 225,964 | | Prepaid expenses and other assets | 5,078 | | TOTAL ASSETS | \$
2,980,269 | | LIABILITIES AND STOCKHOLDER'S EQUITY | | | LIABILITIES: | | | Accounts payable and accrued expenses | \$
15,097 | | | | | TOTAL LIABILITIES | 15,097 | | MEMBER'S EQUITY | | | Member's Equity | 2,965,172 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | \$
2,980,269 | See Report of Independent Registered Public Accounting Firm and Notes to Financial Statement {6}------------------------------------------------ #### **1. Organization and Nature of Business** Fast Execution Services LLC (the "Company"), became a registered broker dealer with the SEC and a member of the Financial Industry Regulatory Authority (FINRA) on August 6, 2020. The Company was organized under the Uniform Limited Liability Company Act of Delaware on August 29, 2019.The Company is registered as a foreign limited liability company doing business in the state of Illinois and is a wholly owned subsidiary of Scalp Trade Holdings, LP (the "Parent"). The Company engages in the referral of individuals and/or entities to registered broker-dealers, that have regulatory approval to hold custody accounts. The Company does not carry customer accounts, hold customer funds or securities, or introduce accounts on a fully disclosed basis to a clearing firm. The U.S. dollar (\$) is the functional currency of the Company. #### **2. Summary of Significant Accounting Policies** #### **a) Basis of Accounting** The Company's financial statement have been prepared in accordance with accounting principals generally accepted in the United States of America ("GAAP") and are stated in U.S. Dollars. The following is a summary of the significant accounting policies used in preparation of the financial statement: #### **b) Cash and Cash Equivalents** The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of funds maintained in checking and money market accounts held at financial institutions. The Company's cash and cash equivalents are held principally at two financial institutions and at times may exceed federally insured limits. The Company has placed these funds in high quality institutions in order to minimize risk relating to exceeding insured limits. #### **c) Securities Transactions** Securities transactions (and the recognition of related income and expenses) are recorded on a trade date basis. Securities owned and securities sold, not yet purchased are carried at their fair value. #### **d) Revenue Recognition** ASC 606 establishes the guidelines for the Company to follow related to recognition of fees associated with contracts between the Company and its customers. The Company is engaged in a single line of business as a securities broker-dealer engaging in the referral of individuals and or introductions to registered broker dealers. The Company records its revenues in accordance with these guidelines as the company recognizes income for participation of commissions\fees that are the result of executed commissions. #### *Commissions* The Company buys and sells equity securities on behalf of its customers. Each time a customer enters into a buy or sell transaction; the Company charges a commission. Commission and related clearing expenses are recorded on the trade date. The Company believes that the performance obligation is satisfied on the trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been transferred to/from the customer. {7}------------------------------------------------ #### **e) Credit Losses** The Company has evaluated due from brokers and concluded that there is no need to establish an allowance for credit losses #### **f) Income Taxes** The Company has elected to be treated as an "S" Corporation under the provisions of the Internal Revenue Code and New York State tax regulations. Under the provisions, the Company does not pay federal or state corporate income taxes on its taxable income. Instead, the stockholder is liable for individual income taxes on their respective share of the Company's taxable income. The Company continues to pay New York City general corporation taxes. The Company recognizes the tax benefit of any uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the tax authorities. The Company did not have material unrecognized tax benefits as of June 30, 2024 and does not expect this to change significantly over the next twelve months. The Company will recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of June 30,2024, the Company has no accrued interest or penalties associated with uncertain tax positions. #### **g) Fair Value** The Company utilizes various methods to measure the fair value of its investments on a recurring basis. US GAAP establishes a hierarchy that prioritizes inputs to valuation methods. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. The three levels of inputs are: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. Level 2 - Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data. Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Company's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available. The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety. {8}------------------------------------------------ #### **g) Fair Value (Continued)** The Company owed one security as at June 30,2024 on which appropriate haircut was applied. Investments in securities listed on a national exchange are valued at the last reported sales price on the day of valuation. Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are stated at the last quoted bid price. Other assets and securities for which market quotations are not readily available are valued at fair value as determined by management in accordance with US GAAP. The resulting unrealized gains and losses are reflected in the statement of income. Realized gains and losses from securities transactions are determined on the basis of identified cost. #### **h) Use of Estimates** The preparation of financial statement 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 the disclosure of contingent assets and liabilities as of the date of the financial statement and the reported amounts of revenue and expenses during the reporting period. actual results could differ from those estimates. #### **3. Due From Broker** The Company had a receivable from broker of \$225,964 for billed, but not received commissions\fees at June 30, 2024. #### **4. Indemnifications** In the normal course of its business, the Company indemnifies and guarantees certain service providers against specified potential losses in connection with their acting as an agent of, or providing services to, the Company. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statement for these indemnifications. The Company provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties. The Company may also provide standard indemnifications to some counterparties to protect them in the event additional taxes are owed or payments are withheld, due either to a change in or adverse application of certain tax laws. These indemnifications generally are standard contractual terms and are entered into in the normal course of business. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statement for these indemnifications. {9}------------------------------------------------ #### **5. Commitments and Contingencies** There were no commitments or contingencies for the period ended June 30, 2024. #### **6. Net Capital Requirement** The Company is subject to the Securities and Exchange Commission Uniform Net Capital Rule (15c3-1), which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 800% in the first year of operations, and 1500% in every year thereafter. At June 30, 2024, the Company had net capital of \$2,734,096 which was \$2,729,096 in excess of its required net capital of \$5,000. The Company's aggregate indebtedness to net capital ratio was 0.55%. #### **7. Related Party** The company has an expense sharing agreement with the parent company according to which the rent and salary expenses are shared between the parent and the broker dealer. The total expenses paid by the broker dealer to the parent were \$88,500. As on June 30, 2024, the balance due to parent was \$4500. #### **8. Subsequent Events** The Company has evaluated events and transactions that occurred between July 1, 2024 and August 30, 2024, which is the date the financial statement were available to be issued, for possible disclosure and recognition in the financial statement. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.