FOCUS Report Sig Brokerage, Lp

X-17A-5 [Paper] - FOCUS Report

Published: 2002-02-28 00:00:00
Submitted: 2002-02-28
Period Ending In: 2001-12-31
scanned.pdf Scanned paper document

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                                                                                     UNITED STATES
                                                              SECURITIES AND EXCHANGE COMMISSION                                                     APPROVAL
                          (af                                                 Washington D.C. 20549                                                  OMB Number:         3235—0123
                       Q &                                                                                                                           Expires: September 30, 1998
             (\/                                                  ANNUAL AUDITED REPORT                                                              Estimated average burden
          ?)/                                                                      .                                                                 hours per response . . . 12.00

                                                                                       PART III                                                             SEC FILE NUMBER
                                                                                                                                                           8— 52028
                                                                                 FACING PAGE
                                   Information Required of Brokers and Dealers Pursuant to Section 17 of the
                                               Securities Exchange Act of 1934 and Rule 17a—5 Thereunder

               REPORT FOR THE PERIOD BEGINNING                                        01/01/01                    :_AND ENDING                                  12/31/01
           —                       —                                                     MM/DD/YY                                                                 MM/DD/YY

                                                             A. REGISTRANT JDENTIFICATION
           NAME OF BROKER—DEALER:                                                                                                         '              OFFICIAL USE ONLY
               Susquehanna Brokerage, L.P.
           ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use P.O. Box No.)                                                                                FIRM ID. NO..
               40 Wall Street, 3rd Floor
                                                                                       (No. and Street)

               New York                                                  NY                                       10005                           ,/,/
           (City)                                                          (State)                        .        (Zip Code)                  < \     L

           NAME AND TELEPHONE NUMBER OF PERSON TO CONTACT IN REGARD TO THIS REPORT                                                                             io     /’

               Brian Sullivan                                                                      (610) 617—2635                                          \//
                                                                                                                                (Area Code— Telephone Numbcr)

                                                            B. ACCOUNTANT IDENTIFICATION
           INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report*

               Goldstein Golub Kessler, LLP
                                                                    (Name — if individual, state last, first, middle name)

               1185 Avenue of the Americas                              New York                                                NY                               10036
           (Address)                                                       (City)                                               (State)   _                       (Zip Code)

           CHECK ONE:                                                                                                                         .
                 Certified Public Accountant   _                                                                                              R
             [_] Public Accountant           .                       —    .                                                          (      OCESSED
             D Accountant not resident in United States or any of its possessions.                                                        MAR 15 2002

                                                                          FOR OFFICIAL USE ONLY                                               THOMAgoma.


           * Claims for exemption from the requirement that the annual report be covered by the opinion of an independent public accountant
                must be supported by a statement offacts and circumstances relied on as the basis for the exemption. See section 240.17a—5(e)(2).

                                               Potential persons who are to respond to the collection of information
           SEC 1410 (3—91)                     contained in this form are not required to respond unless the form displays
                                               a currently valid OMBcontrol number


                                                         OaATH OR AFFIRMATION

       Brain Sullivan
L,                                                                                                                      swear (or affirm) that, to the

best of my knowledge and belief the accompanying financial statement and supporting schedules pertaining to the firm of
Susquehanna Brokerage, L.P.                                                                                                                  . as of

December 31                        , +4 2001 _, are true and correct: I further swear (oraffirm) that neither the company nor any partner, pro—

prietor, principal officer or director has any proprietary intérest in an y account classified soley as that of a customer, except as follows:

                                                                                                                    _                       Signature
                                                                                                             Coatreiler /ITCaeny res"
         .%7“4/(               W,¢—3 //5' foz                                                                                                    Title

Notary Public

This report** contains (check all applicable boxes):
        (a)     Facing Page.

        (b)     Statement of Financial Condition,

        (c)     Statement of Income (Loss).

        (d)     Statement of Changes in Financial Condition.

        (e)     Statement of Changes in Stockholders‘ Equity or Partners® or Sole Proprietor‘s Capital.

        (f)     Statement of Changes in Liabilities Subordinated to Claims of Creditors.

        (g)     Computation of Net Capital.
     C          Computation for Determination of Reserve Requirements Pursuant to Rule 15¢c3—3.

     0 ®        Information Relating to the Possession or control Requirements Under Rule 15¢3—3.

     C6         A Reconciliation, including appropriate explanation, of the Computation of Net Capital Under Rule 15c3—1 and the
              Computation for Determination of the Reserve Requirements Under Exhibit A of Rule 15¢3—3.

     (]         A Reconciliation between.the audited and unaudited Statements of Financial Condition with respect to methods of con—

       (1)    An Oath or Affirmation.
     J (m)    A copy of the SIPC Supplemental Report.

        (n)   A report describing any material inadequacies found to exist or found to have existed since the date of the previous audit.

** For conditions of confidential treatment of certain portions of this filing, see section 240.174—5(e) (3).


                             Certified Public Accountants and Consultants

                                             L_’! 5;.‘ 'Al


To the Partners of
Susquehanna Brokerage, L.P.

We have audited the accompanying statement of financial condition of Susquehanna Brokerage,
L.P. (a limited partnership) as of December 31, 2001. 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 conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the statement of financial condition is free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
statement of financial condition. An audit also includes assessing 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.

In our opinion, the statement of financial condition referred to above presents fairly, in all material
respects, the financial position of Susquehanna Brokerage, L.P. as of December 31, 2001 in
conformity with accounting principles generally accepted in the United States of America.

February 7, 2002

                   1185 Avenue of the Americas   Suite 500   New York, NY 10036—2602
                          TEL 212 372 1800   rax 212 372 1801

                                                         SUSQUEHANNA BROKERAGE, L.P.
                                                                                 (a limited partnership)
December 31, 2001


Cash                                                                                             $     27,292

Receivable from Clearing Broker                                                                      2,506,722

Commissions Receivable                                                                                531,550

Due from Affiliate                                                                                    157,867

Exchange Memberships — Company—owned, at cost (market value $2,200,000)                              1,883,333

Furniture and Equipment (net of accumulated depreciation of $8,982)                                     18,975

Other Assets                                                                                           82,423

       Total Assets                                                                              $5,208,162


  Payable to affiliate                                                                           $ 369,203
 Accrued guaranteed payments to Partners                                                              492,117
 Accounts payable and accrued expenses                                                                175,107


Partners‘ Capital          .                                                                         4,171,735
       Total Liabilities and Partners‘ Capital                                                   $5,208,162

                                                                 See Notes to Statement of Financial Condition


                                                   SUSQUEHANNA BROKERAGE, L.P.
                          December 31, 2001

1.   ORGANIZATION:     Susquehanna Brokerage, L.P., (the "Company") is a broker—dealer registered
                       with the Securities and Exchange Commission (the "SEC") and is a member of
                       the New York Stock Exchange, Inc. (the "NYSE"). The Company earns
                       commissions primarily from activities transacted with other registered broker—
                       dealers on the NYSE and acts as an introducing broker. The Company is 99%—
                       owned by Susquehanna Specialists, Inc. and 1% by Susquehanna Brokerage,

2.   SIGNIFICANT       This statement of financial condition has been prepared in conformity with
     ACCOUNTING        accounting principles generally accepted in the United States of America, which
     POLICIES:         require the use of estimates by management.

                       No provision for federal, state and local income taxes has been made since, as a
                       partnership, the Company is not subject to income taxes. The Company is an
                       exempt entity for state and local tax purposes.

3.   RECEIVABLE        The Company‘s commissions earned are deposited and included in the amount
     FROM CLEARING     due from its clearing broker.
     CONCENTRATION     The Company has agreed to indemnify its clearing broker for losses that it may
     OF CREDIT RISK:   sustain from the accounts introduced by the Company.         As of December 31,
                       2001, there were no unsecured amounts related to these accounts that were owed
                       to the clearing broker.

4.   RELATED PARTY     The Company executes trades for affiliated broker—dealers for which it receives
     TRANSACTIONS:     commissions at various rates.

                       An affiliated entity acts as a common payment agent for the Company and
                       various affiliates for all expenses that are not directly related to trading. The
                       Company reimburses this affiliated entity for such costs based on allocations
                       determined at the affiliated entity‘s discretion. The payable to affiliate is
                       approximately $369,000 relating to these reimbursements. Because of their
                       short—term nature, the fair values of the payables to affiliate approximate their
                       carrying amounts.

                       Guaranteed payments in 2001 are payable on certain contributed Partners‘ capital
                       at broker‘s call rate, as defined, plus 5%. Beginning January 1, 2002, guaranteed
                       payments will be calculated using the broker‘s call rate, as defined, plus 8%.

                       The Company and various other entities are under common ownership and
                       control. As a result, management can exercise its discretion when determining
                       which entity will engage in trading new product lines. Therefore, the financial
                       position presented herein may not necessarily be indicative of that which would
                       be obtained had these entities operated autonomously.

                                              SUSQUEHANNA BROKERAGE, L.P.
                                 NOTES TO STATEMENT OF FINANCIAL CONDITION
                                                           December 31, 2001

5.   NET CAPITAL    As a registered broker—dealer and member firm of the NYSE, the Company is
     REQUIREMENT:   subject to the Uniform Net Capital Rule 15c3—1 of the SEC. The Company
                    computes its net capital under the basic method permitted by the rule, which
                    requires the maintenance of minimum net capital of 6—2/3% of aggregate
                    indebtedness, as defined, or $5,000, whichever is greater. At December 31,
                    2001, the Company had net capital of $1,920,537, which exceeded its
                    requirement of $135,762 by $1,784,775.

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Document Modified: 2019-03-10 02:51:46
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