FOCUS Report Mufg Securities Americas Inc.

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

Published: 2011-03-21 08:54:17
Submitted: 2011-03-01
Period Ending In: 2010-12-31
scanned.pdf Scanned paper document


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                                                                       UNITED         STATES                                              OMBNumber3235-0123                                       L_
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                                              SECURITIES              AND EXCHANGE                  COMMISSION                            Expires    April     30   2013

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                                                        ANNUAL AUDITED REPORT                                                                     SEC FILE       NUMBER
                                                                         FORM X-17A-5
                11019736
                                                                               PART       III




                                                                         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                                                01/01/10                                                              AND ENDiNG                    12/31/10



                                                                      REGISTRANT                IDENTIFICATION


NAME OF BROKER                      DEALER
Mitsubishi        UFJ      Securities    USA Inc                                                                                                    OFFICIAL USE ONLY



                                                                                                                                                         FIRM    ID    NO
ADDRESS            OF PRINCIPAL PLACE OF BUSINESS                                     Do     not use      P.O Box         No
1633    Broadway            29th Floor

                                                                                        No    and   Street




New     York                                                                 New      York                                                                             10019

        City                                                                    State                                                                            Zip     Code



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

Bruce      Glaser                                                                                                                                                      212      405-7036
                                                                                                                                                                Area    Code     Telephone    No


                                                                  ACCOUNTANT                       IDENTIFICATION
INDEPENDENT PUBLIC ACCOUNTANT                                         whose opinion           is    contained       in   this   Report


Deloitte          Touche LLP

                                                      Name             if    individual      state      last   first     middle   name
  World Financial Center                                New           York                                     New       York                           1028    1-1414

                                                                                                                                                    Th-C...L-\
       Address                                                 City                                             State
                                                                                                                                       1URITIES    ADCHANGCOMMISSON
CHECK ONE                                                                                                                                           RECEIVED
                  Certified Public       Accountant



                  Public    Accountant
                                                                                                                                                  MAR    012011

                  Accountant     not resident    in   United    States       or any   of its possessions                                  BRANCH     OF REGISTRATIONS
         LII                                                                                                                                              AND
                                                                                                                                         fl        VAIMtiTIætbJ
                                                                         FOR      OFFICIAL              USE ONLY



claims        for exemption     from the requirement           that    the   annual report         be   covered   by the opinion         of an independent      public     accountant

 must    be   supported by        statement     offacts   and     circumstances         relied      on as the basis for the exemption See section 240.1                     7a-5e2
SEC    1410    06-02


                                                            AFFIRMATION



   William         Mumma       affirm that        to   the best of      my    knowledge      and belief      the accompanying          financial

 statements     and supplemental         schedules        pertaining     to    Mitsubishi       UFJ    Securities   USA         Inc     wholly-

 owned     subsidiary    of Mitsubishi         UFJ     Securities Holdings            Co Ltd     as of and for the year ended

 December 31 2010          are true and correct              further     affirm that      neither the     Company     nor any principal

 officer   or director   has   any proprietary          interest   in   any account       classified     solely as that    of    customer




                                                                              A1
                                                                              Mr      William     Mumma
                                                                                                                                         2011

                                                                                                                                      Date



                                                                              President    and Chief Executive            Officer

                                                                              Title




 Subscribed      and sworn     to   before    me   on
 this   28th   day of February 2011




6ry        1UMic




                                      JUDITH JAMES
                         NOTARY     PUBLIC STATE OF NEW YORK
                                      No.01JA6036611
                           QUAUFIED      IN   ORANGE COUNTY
                         COMMSSON       EXPIRES   JANUARY 31   2014


               MITSUBISHI UFJ SECURITIES                      USA INC
wholly-owned     subsidiary    of Mitsubishi        UFJ     Securities    Holdings     Co Ltd
                              SEC    I.D     NO     8-43   026




               STATEMENT           OF FINANCIAL CONDITION
                                           AND
                     SUPPLEMENTAL SCHEDULES
                      AS OF DECEMBER 312010
                                           AND
                  INDEPENDENT AUDITORS REPORT
                        AND
      SUPPLEMENTAL REPORT ON INTERNAL CONTROL




                                   Filed
                                           pursuant to
     Rule    17a-5e3      under      the   Securities      Exchange      Act of 1934

     and    Regulation    .10g       under    the   Commodity         Exchange Act
                              as     Public   Document


                  lo               tte                                                                                                                          Deloitte          Touche      LIP

                                                                                                                                                                Two World         Financial      Center

                                                                                                                                                                New York          NY 10281-1414
                                                                                                                                                                USA

                                                                                                                                                                Tel         2124362000
                                                                                                                                                                Fax         212 436 5000
                                                                                                                                                                www.deloitte.com




INDEPENDENT                        AUDITORS                 REPORT



To    the   Board of             Directors        and    Stockholder           of

Mitsubishi            UFJ     Securities          USA Inc
We      have     audited the accompanying                         Statement of Financial                      Condition           of Mitsubishi          UFJ         Securities         USA
Inc     the     Company                      wholly-owned                subsidiary          of Mitsubishi               UFJ      Securities       Holdings           Co Ltd               as   of
December 31 2010                      that
                                             you        are filing     pursuant        to    Rule          7a-5 under            the   Securities      Exchange Act of 1934
and     Regulation           1.16     under       the    Commodity             Exchange Act                 This financial               statement       is   the                                of
                                                                                                                                                                      responsibility

the    Companys 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    financial         statements         are free      of material            misstatement                 An     audit    includes        consideration             of
internal        control      over financial             reporting        as        basis    for                          audit                      that      are                          in the
                                                                                                   designing                      procedures                          appropriate
circumstances               but not for the                            of expressing             an                      on   the effectiveness            of the
                                            purpose                                                   opinion                                                             Companys
internal       control      over financial              reporting         Accordingly                 we    express no            such    opinion          An    audit       also    includes

examining on                  test   basis evidence               supporting          the    amounts          and        disclosures         in the financial              statements
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               reasonable            basis

for   our opinion


In    our opinion           such     financial          statement presents                 fairly     in   all     material                     the financial                              of the
                                                                                                                                  respects                                 position

Company at December 31 2010                                  in   conformity with accounting                             principles       generally        accepted          in the     United
States      of America


Our     audit    was conducted               for the        purpose       of forming             an   opinion         on the basic           Statement of Financial                     Condition
taken     as      whole The supplemental                          schedules on pages                   14     15    and       16 are presented for purposes                        of
additional        analysis         and     are    not       required                of the basic           statement of financial                                         but are
                                                                            part                                                                   condition
                           information required
supplementary                                                     by   the regulations                under        the   Commodity            Exchange Act                  These
schedules are the responsibility                          of the     Companys management                                 Such     schedules have              been        subjected to the

auditing        procedures           applied       in    our audit       of the basic            statement of financial                   condition and in our opinion                               are

fairly stated         in   all    material        respects        when      considered            in relation         to the      basic      statement of financial                 condition
taken    as       whole


 74.r4
February        28     2011




                                                                                                                                                                Member       of

                                                                                                                                                                Deloitte    Touche      Tohmatsu


MITSUBISHI                UFJ SECURITIES                  USA         INC

      wholly-owned           subsidiary       of Mitsubishi            UFJ    Securities       Holdings     Co Ltd

STATEMENT                 OF FINANCIAL CONDITION
December 31 2010
ASSETS
Cash                                                                                                                    72914055
Securities      deposited        or segregated           under    federal   and

  other regulations          or requirements                                                                             3498424
Securities      purchased        under agreements            to   resell                                             17877381699
Receivables


      Brokers dealers and clearing                  organizations                                                       90442633
      Securities       borrowed                                                                                       1961881569
      Affiliates
                                                                                                                         4742899
Securities      owned        $804335072            pledged                                                             839065499
Interest      receivable                                                                                                14221667

Furniture       equipment        and     leasehold       improvements             at   cost less   accumulated

                       and   amortization        of   $8482979
 depreciation                                                                                                           10242855
Deferred       tax assets net                                                                                            7186159
Other      assets                                                                                                       14022761

TOTAL ASSETS                                                                                                         20895600220

LIABILITIES               AND STOCKHOLDERS                           EQUITY
LIABILITIES
Securities      sold under       agreements         to   repurchase                                                  19588465191

Payables

      Brokers dealers and clearing                  organizations                                                      156393090
      Securities       loaned                                                                                          338345590
      Affiliates                                                                                                         8776997
      Customers                                                                                                               1957

Securities      sold      but not yet purchased                                                                        557491500
Interest     payable                                                                                                     4529034
Accrued       expenses       and other      liabilities                                                                 38420450

 Total      liabilities                                                                                              20692423809

Liabilities     subordinated        to    claims    of general        creditors                                         70000000

STOCKHOLDERS                     EQUITY
Common         stock      no par value      and additional           paid-in-capital

      2000     shares     authorized       690     shares    outstanding                                                69000000
Retained       earnings                                                                                                 64176411

 Total      stockholders         equity                                                                                133176411

TOTAL         LIABILITIES           AND STOCKHOLDERS                          EQUITY                                 20895600220

See   notes     to   Statement     of Financial          Condition




                                                                                          -2-


MITSUBISHI              UFJ SECURITIES                              USA INC
  wholly-owned                   subsidiary             of Mitsubishi               UFJ         Securities             Holdings            Co Ltd
NOTES TO STATEMENT                                     OF FINANCIAL CONDITION
DECEMBER 31 2010


    ORGANIZATION                              AND            BUSINESS              ACTIVITIES


    Mitsubishi              UFJ         Securities            USA           Inc         the         Company                  is        wholly-owned                    subsidiary          of Mitsubishi
    UFJ       Securities               Holdings          Co         Ltd     MUSHD                               Japanese           holding          company               MUSHD             in    turn        is


    wholly-owned                      subsidiary             of Mitsubishi               UFJ         Financial              Group         Inc       MUFG                      The         Company            is

    registered          broker-dealer                  and     is     member of                the Financial                Industry       Regulatory                Authority           FINRA
    In     its                                    securities
                 capacity              as                             broker-dealer                   the       Company                engages        in    collateralized                financing           and
    securities         borrow               and     loan      transactions              domestic               and                       debt and                        securities
                                                                                                                       foreign                             equity                           transactions

    capital      markets transactions private                                placements                  and     investment                               activities
                                                                                                                                         banking


   SUMMARY OF SIGNIFICANT                                                  ACCOUNTING                           POLICIES


    Use      of estimates                         The        preparation           of         the     Statement              of    Financial              Condition           in                         with
                                                                                                                                                                                    conformity
   accounting               principles              generally          accepted                in    the       United         States          of America               GAAP                 requires          the

   Company             to       make         estimates         that    affect       the       reported          amounts of               assets      and        liabilities        and    disclosures             of

   contingent              assets           and    liabilities        at    the     date        of the          Statement              of Financial              Condition               The      Company
   believes        that         the     estimates            utilized      in    the preparation                 of the Statement of Financial                              Condition             primarily

   relating       to    compensation                     taxes       and     occupancy                   are   prudent           and     reasonable               Actual       results      could       differ

   from       these     estimates



   Securities              Transactions                      Customer             securities             transactions              are    recorded              on        settlement           date     basis

   Principal          securities             transactions             are    recorded               on         trade      date     basis        Interest             associated          with Securities
   owned         and            Securities             sold     but    not        yet     purchased               are       recorded           in    Interest           receivable          and       Interest

   payable         respectively                   in   the    Statement of Financial                           Condition



   Cash and                Cash Equivalents                           The         Company                defines          cash      and       cash        equivalents             as                     time
                                                                                                                                                                                         overnight
   deposits        and          short-term             highly liquid investments with original                                         maturities          of three         months         or less      at    the

   time of purchase



   Securities          Deposited                  or Segregated             under Federal                      and Other Regulations                        or Requirements                       Qualified
   securities          are       segregated             in                       reserve        account           for the         exclusive          benefit          of customers pursuant to
                                                               special

   Rule      15c3-3         of the Securities                  and     Exchange               Commission                  SEC
   Securities              Purchased                   Under        Agreements                  to       Resell           and      Securities              Sold         Under                                  to
                                                                                                                                                                                       Agreements
   Repurchase                     Securities            purchased           under         agreements                 to     resell      reverse                                                              and
                                                                                                                                                           repurchase              agreements
   securities                     under
                      sold                      agreements            to   repurchase repurchase                                 agreements                 principally            U.S government
   federal                            and    mortgage-backed                     securities              are treated          as    collateralized
                 agency                                                                                                                                          financing          transactions             and
   are     carried         at    the     contract        amounts            at    which         the      securities          will      be subsequently                  reacquired          or resold          as
                      in
   specified                    the     respective            agreements                 It    is    the       Companys                policy        to    generally          take        possession of
   securities         purchased               under          agreements            to   resell        at   the    time such              agreements             are     made           The Companys
   agreements               with        counterparties                                    contain                                                         for    additional
                                                                      generally                                provisions allowing                                                     collateral      to     be
   obtained           or excess              collateral        returned            when necessary                      In    the    event      the    market value of such securities
   falls    below          the        related      agreement           to resell at             contract          amounts                      accrued                            the
                                                                                                                                       plus                      interest                Company             will

   generally         request            additional           collateral




                                                                                                    -3-


 Reverse         repurchase          and        repurchase                   agreements               are       reported         on                                                                       when
                                                                                                                                                net-by-counterparty                        basis
 applicable            pursuant         to    the     provisions                  included           in   Financial           Accounting                   Standards             Board         FASB
 Accounting            Standards Codification                      ASC                   Topic         210      Offsetting


 Securities        Borrowed                  Securities           borrowed               transactions              are    recorded              at    the       amount of cash                    collateral

 advanced              For     securities           borrowed                     the    Company                               cash          with       the       lender                The
                                                                                                             deposits                                                                          Company
 monitors        the   market       value of securities borrowed                                    daily    and     obtains          or    refunds collateral                       as   necessary


 Securities        Loaned                Securities              loaned             transactions             are     recorded              at    the        amount              of   cash      collateral

 received        For securities               loaned        the        Company                receives       cash       from the borrower                            The Company                  monitors
 the    market value of securities loaned daily                                        and     obtains       or   refunds collateral                       as   necessary


 Securities       Owned            Securities             owned             are     recorded on                 trade     date    basis              All                         are      carried      at    fair
                                                                                                                                                            positions
 value



 Securities       Sold But Not Yet Purchased                                           Securities         sold but         not yet          purchased                are    recorded on                   trade

 date    basis      All positions             are carried              at    fair      value



Derivative          Instruments                     All     derivatives                   primarily                                                                       are
                                                                                                                exchange-traded                      futures                     reported            on      the

 Statement of Financial                      Condition            at    their          fair    value         The                           receivables
                                                                                                                     reported                                        unrealized              gains and
 payables        unrealized             losses         related              to    derivatives             are     included        in       receivables                from       and        payables          to

 brokers       dealers       and    clearing           organizations


 The     Company           trades        interest          rate        futures            exchange              traded        options            and                                               forward
                                                                                                                                                            foreign             currency
contracts         The Company                  also       enters        into        forward          foreign        exchange            contracts               to                   non     dollar       term
                                                                                                                                                                      hedge
repurchase agreements                         Gains        and    losses            from these            transactions            are      included             in    Accrued                               and
                                                                                                                                                                                          expenses
other      liabilities     in the    Statement of Financial                              Condition



Interest       Receivable          and Payable                    Interest             receivable           and    payable consist                                    of interest            accrued
                                                                                                                                                      mainly                                                 on
repurchase agreements                        reverse       repurchase agreements                             and     securities            borrowed              and       loaned


Furniture          Equipment                 and Leasehold                       Improvements                     Furniture           and       equipment                 are    recorded            at     cost
and     are   depreciated          on          straight-line                basis       over the estimated                    useful        lives          of        to
                                                                                                                                                                                years        Leasehold

improvements             are   amortized              on         straight-line                 basis      over      the    lesser          of the economic                      useful        life    of the
asset    or where applicable                    the    remaining                  term of the lease                 At December 31 2010                                   furniture          equipment
and     leasehold        improvements               consist        of the following



                                                                                                                     Accumulated                                                       Net

                                                                                                    Cost                Depreciation                                  Book Value
Furniture          Fixtures                                                             1378595                               1124151                                           254444
Leasehold        Improvements                                                           6617620                               1904690                                      4712930
Computers              Other                                                           10729619
                                   Equipment                                                                                  5454138                                      5275481

                       Total                                                        $18725834                                 8482979                                     10242855




Advisory         Fees          Advisory             fees     are            mainly           derived         from       the      Company                                  as                 in
                                                                                                                                                           acting                agent               private
placements         and                   markets transactions                                 In    addition        the
                           capital                                                                                         Company                   engages          in
                                                                                                                                                                           corporate              advisory
activity      consisting       of mergers and                acquisitions                     and    other                       roles
                                                                                                                advisory




                                                                                              -4-


Service      Fees            Service         fees       are    derived            from       facilitating         securities          transactions                 for    affiliates        and     are

recognized on an               accrual        basis          over the period the services                         are     rendered



                                      Assets and                                    denominated           in      non-U.S            dollar      currencies              are translated            into
Foreign      Exchange                                         liabilities


U.S    dollar        equivalents            using year-end               spot       foreign        exchange         rates




Receivables            and Payables                      Customers                       Receivables              from         and     payables              to     customers             represent

balances        arising        in    connection               with      securities            transactions           executed              on          receive-versus-payment                        or

deliver-versus-payment                      basis



Receivables            and Fayables                     Brokers               Dealers         and Clearing                 Organizations                      Receivables                 from and

payables        to    brokers          dealers          and     clearing            organizations            include           amounts           receivable               for   securities         not

delivered       by     the    Company              to        purchaser            by    the    settlement          date        receivables             and        payables arising                from

unsettled       trades         margin         deposits             with       clearing         organizations                receivables               from         capital          market     agent
transactions           and    receivables               on    futures         transactions            Payables            to    brokers          and        dealers        include         amounts

             for securities            not       received          by the Company                   from           seller      by the settlement                    date       an
payable                                                                                                                                                                              payables on
futures     transactions




Income       Taxes            Income         taxes       are    provided            using the asset and                   liability        method under which                         deferred       tax

assets    and        liabilities      are    determined                 based                  temporary            differences             between               the    financial         statement
                                                                                    upon
and   income          tax    basis     of assets             and     liabilities             using currently              enacted          tax    rates           FASB ASC                Topic     740

Income       Taxes            requires           companies              to    set   up        valuation           allowance           for that         component                of net deferred

tax   assets         which does             not     meet        the      more            likely      than      not         criterion            for    realization                  The    valuation

allowance         reduces           deferred        tax       assets         to   an    amount        that     represents             managements                       best    estimate          of the

amount of such               deferred        tax    assets that              more      likely      than not will be realized




SECURITIES                  OWNED AND                        SECURITIES                      SOLD NOT YET PURCHASED

Securities        owned        and     securities            sold not yet              purchased             at    fair    value      at    December 31 2010                         consist       of


                                                                                                             Owned                                            Sold

             U.S.Governments and                             agencies                                   $347768660                                     $506614788

             Corporate              debt                                                                   409866133                                        43362991

             Municipal              debt                                                                       72874602

             Equities                                                                                             8429019                                     7508511

             Options                                                                                                 127085                                              5210

                                                                                                        $839065499                                     $557491500




Securities        owned        that        are     pledged         to        counterparties           represent            proprietary                positions          which have               been

pledged      as      collateral        to    counterparties                  on     terms which permit                    the
                                                                                                                                 counterparty                 to    sell       or repledge          the

securities      to    others         At December                31 2010                the   amount of            securities         pledged           is   $804335072




                                                                                             -5-


BROKERS DEALERS AND CLEARING ORGANIZATIONS

Amounts                               from        and                                                          and                                                         December
                   receivable                                payable        to    brokers      dealers                   clearing       organizations                at                            31
2010       consist       of the following



                                                                                                             Receivables                               Payables

                  Securities         failed-to-deliver/receive                                                 $56091431

               Clearing organizations receivable/payable                                                           13115464                           36281095

               Capital          markets agent                transactions                                          21164559                            4480995
               Futures transactions                                                                                        71179

               Pending           Trades                                                                                                               115631000

                                                                                                               $90442633                         $156393090




LIABILITIES                  SUBORDINATED                           TO CLAIMS OF GENERAL CREDITORS

The       Company            has two        subordinated              loan       agreements          totaling        $70000000                 with     its
                                                                                                                                                               parent        MUSHD                  at


December 31 2010                     that    mature on varying                    dates



               Maturity              Date                     Rate                                   Amount
               March 29 2013                                  6M     Libor                      $35000000

               September              30 2015                 6M     Libor                           35000000

                                                                                                $70000000




The       loans    allow for prepayment                        of    all   or    any    part   of the obligation                 at    the   option        of the          Company            and

upon       receipt      of prior written               approval        from       F1NRA        and     the    National        Futures Association



The       agreement             covering          the     subordinated                borrowings         has        been     approved             by      FINRA and                    thus         is


available         in    computing           net    capital          pursuant to Rule                15c3-1     under        the       Securities        Exchange Act of 1934
and     Regulation            1.17    under       the     Commodity               Exchange          Act To          the    extent       that    such      borrowing              is   required

for the      Companys                continued                                   with net capital                                                     not be                          Since
                                                         compliance                                          requirements               it
                                                                                                                                             may                     repaid                        the

initial     term        of each        loan       is    in    excess        of three                   and     has        more        than      one                  to                             is
                                                                                           years                                                        year               maturity           it



considered             equity    capital      for       regulatory          purposes


RECENT ACCOUNTING DEVELOPMENTS

Financing          Receivables

In    July 2010           the    FASB         issued         Accounting               Standards Update               2010-20 Disclosures                             About       the     Credit

Quality       of       Financing         Receivables                 and        the    Allowance             for    Credit        Losses           ASU               2010-20                  The

guidance          requires        more robust                 and     disaggregated            disclosures               about        the    credit      quality           of an       entitys

financing receivables                  and    its      allowance           for credit      losses        The guidance                 defines          financing receivable                         as

     contractual         right to     receive
                                                        money on demand                   or   on      fixed        or    determinable            date        that    is    recognized              as

an    asset   in       the   entitys Statement                      of Financial         Condition             Examples               of financing receivables                         include

receivables            arising       from         margin            loans        securities     purchased                under        agreements              to     resell       securities

borrowed          and     receivables         arising          from        commitments related                 to    standby          letters    of credit                The guidance              is


effective      beginning             with periods             ending        after      December 15 2010                     The Company adopted                            the   disclosure

provisions         of    ASU      2010-20          for the          year ended          December 31 2010                      Due       to the        nature       of the        Companys

                                                                                        -6-


collateralized               securities           financing transactions                             the        Company                 does         not maintain                    credit       allowance            on
receivables            arising        from        such    transactions




Fair Value          Measurements                        and Disclosures
In     January         2010          the     FASB             issued          Accounting                   Standards                Update             ASU                    2010-06         which           amends

Accounting               Standards           Codification                ASC 820                           Fair Value                    Measurements                    and        Disclosures                   Under
the     ASU              reporting           entity       is       now        required              to    disclose            separately               the       amounts            of and            reasons for

significant         transfers           between           Level             and      Level                assets        and        liabilities            in the       fair    value hierarchy                    as well

as     transfers          into        and         out     of       Level              of        the        fair        value        hierarchy                   for    reconciliation                 of     Level

measurements                   In     addition                reporting             entity           is   no      longer           pennitted               to    adopt          policy        of recognizing

transfers        into/out            of Level             as       of the beginning                        or     end     of            reporting               period         Rather            an                 must
                                                                                                                                                                                                       entity

disclose         and     follow              consistent             policy          for    determining                   when            transfers              between         levels       are       recognized
For the year ended                    December                31 2010               application                 of     ASU         20 10-06            did       not    have           material            impact      on
the    Companys                Statement of Financial                          Condition



Subsequent             Events

In    February         2010          the     FASB        issued        ASU           2010-09              which amended                         ASC85S Subsequent                            Events                 ASU
2010-09          was      issued        to    address implementation                                 concerns             related              to    an                                                to
                                                                                                                                                            entitys requirement                              perform
and     disclose         subsequent               events             The       ASU             adds        certain            terms            to    the     ASC         master glossary                     and     also

requires       filers     to    evaluate               subsequent              events           through the date                        of the        Companys                 Statement of Financial

Condition              The      Company does                    not    note any                subsequent               events requiring                        disclosure           or   adjustment               to the

Statement of Financial                       Condition



SECURITIES                     SEGREGATED                           UNDER FEDERAL REGULATIONS

 At December                  31 2010              the        Company               segregated                  for     the    exclusive                  benefit        of customers                  under        Rule

 15c3-3        of the Securities                  and    Exchange Commission $3498424                                                      of qualified                 securities




 FAIR VALUE                     MEASUREMENTS

Fair    value       is   defined           as the                    that      would            be received                   to               an     asset       or
                                                         price                                                                      sell                                paid to        transfer               liability


i.e      the     exit         price          in   an     orderly          transaction                    between          market                                        at    the     measurement                  date
                                                                                                                                           participants

The     Company               also    classifies          its      financial         instruments                   using                fair    value           hierarchy which                  prioritizes          the

inputs      to    valuation             techniques                 used       to     measure               fair        value            into        three        broad        levels         The           fair    value

hierarchy         gives        the    highest           priority         to    quoted           prices            in    active          markets             for identical             assets          or    liabilities


Level                  and      the        lowest         priority             to     unobservable                       inputs            Level                               financial              instruments

                              within       the     fair   value hierarchy                       is       based                     the     lowest           level       of input          that
categorization                                                                                                        upon                                                                        is    significant

to    the   instruments                    fair    value           measurement                       The          three        levels           within           the     fair       value        hierarchy            are

described as follows




      Level                  Quoted          prices       unadjusted                      in    active           markets            for        identical              assets     or    liabilities           that     the

      Company             has        the     ability          to    access           at        the        measurement                    date             Level               securities              include        U.S
      Government               and    agency            securities            exchange               traded           equities           and        exchange            traded        options

      Level              Inputs       other       than quoted                 prices       included               within           Level              that       are    observable           for the asset             or

      liability        either        directly           or indirectly                 Level                 inputs        include                    quoted           prices        for   similar           assets     or

      liabilities        in    active        markets               quoted          prices           for    identical               or    similar            assets       or     liabilities           that    are     not

      active      inputs        other        than quoted              prices        that        are       observable               for the asset                 or liability          and                    that    are
                                                                                                                                                                                                 inputs

      derived       principally              from        or    corroborated                    by    observable                market               data by           correlation           or    other           means
      Level         securities          include          corporate and                municipal                   debt instruments




                                                                                                 -7-


       Level               Unobservable              inputs       for the      asset or                      for   which     there
                                                                                            liability                                     is little   if   any market          activity
       at   the     measurement date                     Unobservable              inputs      reflect       the    Companys own                                        about     what
                                                                                                                                                   assumptions
       market        participants            would use            to   price    the    asset   or liability            The                   are
                                                                                                                                inputs             developed       based        on   the
       best     information             available        in      the                            which might
                                                                       circumstances                                     include      the
                                                                                                                                               Companys own                financial
       data     such       as    internally          developed           pricing      models discounted                    cash    flow                                  as    well as
                                                                                                                                              methodologies
       instruments          for       which      the   fair      value determination               requires        significant       management judgment

 Assets Measured                        Fair     Value      on                         Basis as of December
                                  at
                                                                       Recurring                                             31 2010



                                                                       Level                         Level                            Level                            Total
 Securities         owned
      U.S Govts             and       Agencies                    $347768660                                                                                     $347768660
      Equities                                                          8429019                                                                                         8429019
      Interest      rate    options                                            5210                                                                                             5210
      US    Treasury            note option                                121875                                                                                             121875
      Corporate debt                                                                                409866133                                                      409866133
     Municipal         debt
                                                                                                        72874602                                                       72874602
 Securities         deposited           or

 segregated under                 federal      and

 other      regulations          or

requirements                                                            3498424                                                                                          3498424
Broker         dealers      and        clearing

organizations
     Futures
                                                                            71179                                                                                              71179
Other assets

     Foreign        currency           forward                                                           5117800                                                        5117800
                                                                  $359894367                         487858535                                                    $847752902




 Liabilities        Measured            at   Fair    Value        on       Recurring        Basis as of December                   31 2010



                                                                   Level                            Level                            Level                             Total
Securities          sold    but       not yet

purchased

     U.S Govts             and     Agencies                      $506614788                                                                                      $506614788
     Equities                                                          7508511                                                                                          7508511
     Options                                                                   5210                                                                                            5210
     Corporate debt                                                                                     43362991                                                       43362991
                                                                 $514128509                         $43362991                                                    $557491500




Transfers           between        Level            and Level
During        the    period       ended        December            31 2010            the
                                                                                            Company           did not reclassif
                                                                                                                                any                    securities       owned        or
securities        sold not yet purchased                      from Level              to   Level             from
                                                                                                        or             Level         to    Level


 DERIVATIVE INSTRUMENTS

The    Company             trades       listed      futures forwards               and      options          The Company             manages           its
                                                                                                                                                             trading     positions
by    employing                 variety        of    risk     mitigation                            These
                                                                                strategies                         strategies      include         diversification            of risk



                                                                                      -8-


      exposures          and      hedging           Hedging       activities             consist    of the                             sale    of positions
                                                                                                                purchase         or                                   in    related

      securities        and     financial                                                                of derivative
                                                instruments           including              variety                             products      e.g       futures      forwards
      and       options         The       Company manages                     the        market     risk    associated          with    its                activities
                                                                                                                                               trading                        on
      Company-wide               basis



      The       following        table    summarizes           the    fair    value        of derivative        instruments           not   designated         as    accounting
      hedges       by type of derivative              contract        on       gross       basis   as   of December             31 2010

                                                                                             Assets                                                    Liabilities

                                                                      Fair    Value                        Notional                    Fair    Value                  Notional
      Derivatives         not    designated as

      accounting         hedges
      Securities        owned
           interest     rate                                                         5210
                                options                                                              $2500000000                               $5210           $2500000000
           US   Treasury        note     option                                121875                       10000000


      Broker       dealers       and     clearing

      organizations

           Futures                                                                 71179                   $14500000


     Other assets

     Foreign       currency          forward                                 5117800                       158661718


                                                                           $5316064                     $2683161718                            $5210            $2500000000


10   RELATED PARTY ACTIVITIES

      The       Company          has      transactions          with         affiliates                             MUSHD              These
                                                                                               including                                            transactions           include

      facilitating        securities        transactions                             market
                                                                     capital                       transactions            repurchase         and    reverse        repurchase
      agreements          advisory          services                         and                                           At   December
                                                          clearing                   operational           support                                  31 2010          assets    and
     liabilities      with related         parties consist           of the following



     Assets
     Cash and cash             equivalents                                                                                       2298953
     Securities       purchased          under                          to   resell
                                                    agreements                                                             5646548708
     Securities       borrowed
                                                                                                                           1274906250
     Receivables         from     affiliates
                                                                                                                                4742899
     Interest receivable
                                                                                                                                 1369471
                                                  Total                                                                    6929866281


     Liabilities

     Securities       sold     under                      to
                                         agreements             repurchase                                                 1915216147
     Securities       loaned                                                                                                    19990800
     Payables      to   affiliates
                                                                                                                                8776997
     interest    payable                                                                                                          256250
                                                  Total
                                                                                                                           1944240194


     The    Company            has       $300       million     committed                                             with Bank         of Tokyo-Mitsubishi
                                                                                         borrowing       facility                                                            UFJ
     Ltd    BTMU                used to finance               portion        of    its   operations        which      at   December 31 2010 was                      not   drawn
     down




                                                                                         -9-


     At      December                 31      2010             Mitsubishi                 UFJ      Securities                Holdings            Co              Ltd         pledged           $355735366                    in

     securities to              the    Company                 and       the portion             subsequently                 repledged was                  $158875654



11   INCOME TAXES

     Income          taxes        are       recorded               in    accordance               with       the       asset       and     liability             method under                  FASB ASC 740
      Income Taxes                      which           requires             that    an asset and             liability        approach            be applied                 in    accounting               for       income
     taxes      and      that      deferred             tax       assets       and        liabilities        be     measured              for                               differences
                                                                                                                                                temporary                                         using           currently

     enacted         tax        rates       for    temporary                  differences              in   the                           are    expected               to    reverse            In
                                                                                                                    year they                                                                          assessing           the

     realizability              of deferred              tax       assets management                         considers             whether            it    is   more                      than       not that           some
                                                                                                                                                                              likely

     portion        or    all    of the deferred                   tax       assets       will    be    realized



     Net      deferred           tax        assets       of       $7186159                  are    primarily             attributable             to        the       tax     benefit          of the        temporary
     differences                between            book            and        tax     basis        such        as      depreciation               amortization                       pension            liability         and

     deductibility              of accrued               bonuses              professional              fees      and    rent       expenses


     In     addition        to    New         York State                     New       York        City        and      New         Jersey        taxes               the    Company              pays       California

     taxes         California           taxes           are       computed            on          unitary         basis Each               entity          included            in    the    California                 unitary

     return        collectively              the        Group pays                     the    California               tax    on    its   share        of the Groups                      income         apportioned
     to    California The                   Company                 made        certain          estimates             with respect              to the                                     of           share          of the
                                                                                                                                                                 computation                      its

     California            income            tax        There           is   no formal            tax       sharing                               in                                                   the
                                                                                                                             agreement                     place            Nonetheless                          Company
     believes         the       method            for allocating                California              income          tax    expense           is    systematic                   rational          and    consistent

     with the broad               principles                 of   ASC 740

     Net    deferred            tax    assets as             of December                  31 2010           have        the   following           components


                                                                                                                              Federal                        State             Local                         Total

     Deferred        tax    assets
                                                                                                                               6155643                                $3082250                          $9237893
     Deferred tax           liabilities                                                                                       1749143                                   302591                           2051734
     Net deferred           tax       assets                                                                                   4406500                                  2779659                              7186159


           reconciliation              of the beginning                       and     ending amount of unrecognized                                        tax    benefits           is   as   follows




     Balance        at   January              2010                                                                             297742
     Decreases           related       to    current          year      tax positions                                               6496
     Increases        related         to prior year               tax positions
                                                                                                                  _________________
     Balance        at   December31                     2010                                                                       291246


     All     tax     positions              included               in    the        balance        at       December               31 2010                 are    highly            certain       as        to    ultimate

                                 but     there          is                             about       the       timing of such                                                    The                                does     not
     deductibility                                            uncertainty                                                                      deductibility                              Company
                                             increase                    decrease          in the
     expect          significant                                   or                                   unrecognized                 tax    benefits             during the next 12 months


     Reserve         for    interest              net    of benefit                 and                           if               are    included                     Accrued                                   and
                                                                                            penalties                   any                                      in
                                                                                                                                                                                          expenses                      other

     liabilities         in the         Statement                 of Financial              Condition               For       2010         the    accrued               interest                             balance        at
                                                                                                                                                                                           payable
     December31 2010                         is    $1    1934


     The     Companys                 years open                  to    examination               by major jurisdictions                         are        tax       years ended              December                  2007
     and     forward            for     Federal              New         York         State        New         York City                 and     California                 and      December                    2009 and
     forward        for     New         Jersey tax                purposes



                                                                                                        -10-


12   RISK

     Risk          an     inherent                          of the        Companys                  business            and     activities                 The                              has established                       risk
              is                                part                                                                                                                  Company
                                                     and     procedures                to    measure              and       monitor            each         of the various                                   of significant
     management                policies                                                                                                                                                      types

     risks    involved             in    its    trading         and       securities           financing               businesses               The Companys                          ability          to    properly             and

                                                                   monitor            and                                    risk   is                           to    the       overall           execution                 of    the
     effectively             identify            assess                                        manage              its                        critical


                                                      and                                               Senior                                                                                              and
     Companys                 strategy                         its        profitability                                      management                     requires              thorough                              frequent
     communication                  and        appropriate                escalation           of risk matters



     Risk      management                       at     the         Company                  requires          independent                     Company-level                          oversight                   as      well       as

     supervisory              oversight               on     its    trading           desks           Effective              risk       practices               are     carried            out     through              constant

     communication                      exercise            of professional                 judgment and                     knowledge                    of specialized                  products and                  markets

     The      Companys                    senior            management                      takes       an        active        role           in         the     identification                       assessment                 and

                              of risks                 the    Company                 level
     management                                  at




     Market Risk                   In    the     normal course of business                               the       Company enters                          into       securities            transactions                 in    order

     to    meet      client             financing            and         hedging            needs             The           Company                  is    exposed              to        risk    of        loss        on     these

     transactions             in    the    event            of the clients              inability            to    meet       the       terms         of their contracts                          in   which            case       the

     Company may                   have         to    purchase            or    sell    financial            instruments                 at    prevailing               market prices                        Settlement of

     these    transactions                did        not have              material           impact upon the                      Companys                      Statement of Financial                               Condition

     and     the   Company                did        not accrue             liability          for these           transactions



     Credit        Risk             The         contract            amounts             of reverse                 repurchase                 and          repurchase                                              reflect         the
                                                                                                                                                                                     agreements

     Companys                extent       of involvement                    in    the particular                  class       of financial                 instrument and                   do        not                          the
                                                                                                                                                                                                             represent

     Companys                risk       of loss due                to    counterparty                nonperformance                            The         Companys                   exposure               to    credit         risk

                          with                                                                           is       limited                the         amounts
     associated                         counterparty                    nonperformance                                             to                                      reflected             in    the        Companys
     Statement of Financial                           Condition                 Risk arises             from the potential                           inability             of counterparties                       to    perform
     under     the      terms of the contracts                            and    from changes                     in    interest         rates            The      settlement               of these             transactions

     did    not have               material           effect       upon         the    Companys                   Statement of Financial                               Condition



     Customer           Securities               Transactions                     In        the     normal         course of business                             the       Companys                   client           activities

     involve       the       execution                and     settlement               of various             securities                transactions                  as    agent            In       accordance               with

     industry       practice             the     Company                 records client securities transactions                                            on          settlement            date          basis which              is


     generally       within             one      to three          business days                  after trade               date        The         Company                is   exposed               to    risk      of loss on

     these    transactions                in the       event            of the clients                                  to   meet        the     terms of their contracts                                         which
                                                                                                    inability                                                                                               in                 case
     the    Company may                   have         to    purchase            or    sell       financial            instruments              at    prevailing                market prices                      Settlement

     of    these     transactions                     did     not        have           material             impact                           the         Companys                   Statement                   of Financial
                                                                                                                               upon
     Condition          and        the    Company did                     not    accrue              liability          for these         transactions



     Collateralized                Securities                Financing                 Transactions                          The        Company                   enters          into       reverse               repurchase

                              repurchase                                               and        securities                borrow             and          loan        transactions                         Under             these
     agreements                                             agreements

     agreements              and    transactions                   the    Company              either receives                 or       provides             collateral               The Company                        receives

     collateral         in    the       form          of securities               in    connection                 with        reverse              repurchase                                              and       securities
                                                                                                                                                                                agreements
     borrowed        transactions                     In     many         cases        the    Company                  is   permitted to                  sell    or    repledge these                      securities            held

     as    collateral         and        use         the     securities           to    secure repurchase                           agreements                    or    enter         into        securities              lending
     transactions              At December                     31 2010                the     fair     value of securities                          received            as      collateral                 prior to          netting

     pursuant        to      ASC          Topic             210 Offsetting                        where           the        Company                 is     permitted                to    sell        or    repledge              the

     securities         was         $21925149037                          and     the        fair     value        of the          portion            that        has      been           sold    or       repledged              was
     $21397201703                         Due         to    the     nature        of the            Companys                 collateralized                      securities           financing                  transactions
     the   Company             does       not        maintain              credit       allowance                 on    receivables              arising              from such             transactions




                                                                                                       -11-


     In    the   event        the                             is       unable to meet                     its    contracted           obligation            to    return    securities
                                     counterparty                                                                                                                                                     pledged      as

     collateral         the         Company may                   be      exposed              to     the       risk    of acquiring            the        securities           at   prevailing            market

     prices      in    order to satisfy            its      obligations              The            Company             seeks        to control        risks       associated          with repurchase

     agreements              by     monitoring              the    market            value            of securities               pledged        on          daily        basis      and         by     requiring

     additional         collateral          to    be     deposited             with            or     returned          to     the    Company when deemed                                                        The
                                                                                                                                                                                       necessary
     Company            establishes          credit         limits       for   such        activities             and    monitors                                   on                  basis
                                                                                                                                          compliance                        daily



13        COMMITMENTS AND CONTINGENCIES

     Leases             The         Company            leases           space        in        New        York          New        Jersey        and        California Obligations                              under

     operating          leases       contain       noncancelable                   terms            in    excess        of one       year     Approximate                  aggregate             annual lease

     obligations            are     as   follows



                                                            Year                                                                                                   Amount
                                                            2011                                                                                                  5811990
                                                            2012                                                                                                  5833906
                                                            2013                                                                                                  5834872
                                                            2014                                                                                                  5834872
                                                            2015                                                                                                  4536769
                                                   Thereafter                                                                                                    11230893

                                                                                                    Total                                                   $39083302


     FASB ASC                Topic        420 Exit            or       Disposal           Cost Obligations                         pertains       to among                other      things             costs    that

     will    continue          to   be    incurred          under         an operating                   lease    without          economic            benefit       to    the entity             Under         ASC
     420         liability          for   costs     that      will           continue           to    be     incurred             under   an     operating               lease       without            economic
     benefit     shall       be     recognized and                 measured           at       fair      value at the cease-use                   date           based     on    the                            lease
                                                                                                                                                                                       remaining
                  reduced            by estimated                 sublease rentals                                             obtained                           property The
     rentals                                                                                             reasonably                             for        the                                   fair    value     of

     such     liability       shall       be estimated             using an expected                        present       value technique



     In   2009        the    Company             relocated             its   New     York             operations             In    2010     the       Company              subleased the majority

     of    its   previous           premises           to    an        affiliate          at    market            rental          rates   substantially               lower          than         the     original

     contract         terms         Consequently              in       accordance               with        ASC 420                   reserve      was           established          to    the       expiration

     of the original              lease    term The unamortized                                balance           of this reserve at December                             31 2010            is   $3224983

14   FINANCIAL INSTRUMENTS                                             ANt         FAIR VALUE INFORMATION


     For cash          and     cash       equivalents              repurchase and                        reverse        repurchase          agreements                   securities         borrowed             and

     loaned           and     receivables              and        payables           from             brokers            dealers          clearing           organizations                  and         affiliates

     carrying         values are reasonable estimates                                of        fair      value         Taken together                 financial          instruments               recorded        at


     market       or    fair      value     and        financial             instruments                 recorded         at      amounts        which            approximate               market         or    fair


     value       represent          substantially            all       recorded assets and                        liabilities




15   RETIREMENT PLANS AND OTHER POSTEMPLOYMENT                                                                                              BENEFITS


     Eligible         employees            of the       Company                are    covered               under            defined        benefit          pension            plan        postretirement

     medical and             life    insurance benefits and                               401k             Savings        and        Investment             Plan the Retirement                           Savings
     Plans            sponsored            by    BTMU                  Annual             contributions                 are       based     on        an    amount          that       satisfies           ERISA
     funding      standards




                                                                                                         12-


16   REGULATORY                        REQUIREMENTS

     As          broker/dealer           the       Company        is   subject       to    the     Securities            and                        Commissions Uniform Net
                                                                                                                                Exchange
                   Rule         15c3-1         under     the    Securities                               Act        of    1934     which
     Capital                                                                         Exchange                                                     requires         the    maintenance           of
     minimum             net    capital       in   accordance       with         formula             set forth       therein          The Company                 calculates      net capital
     under        the    alternative           method permitted by Rule                              5c3-       which          requires       the       Company           to    maintain     net

     capital       as    defined         at    the    greater     of   2%     of aggregate debit                    balances          arising from            customer           transactions

     pursuant to the              Securities           Exchange Act of 1934                        or    the    amount computed                     pursuant         to   Section     1.17    of
     the     Commodity                 Exchange          Act       For        Rule        15c3-1
                                                                                                          purposes               there    are           certain      additional
                                                                                                                                                                                         capital
     requirements              for broker/dealers
                                                                engaging        in   reverse            repurchase agreements                       At December                 31 2010      the

     Company             had      net                    of     $109561173                 that         was
                                          capital                                                               $108417180                   in     excess         of     the    $1143993
     requirement



17   OFF BALANCE SHEET RISK

     In    its                    as          broker/dealer            the
                  capacity                                                    Company              will        at   times         enter      into       foreign      currency        forward
     transactions          to    facilitate          customer                    to       settle                     denominated
                                                                  requests                            foreign                                 securities          transactions        in   U.S
     dollars       The     fair    value of these              transactions          generally           approximates              zero      due    to     the    short-term        nature    of
     the   product


     The      Company             also        enters     into     foreign        currency               forward           transactions             to                   non     dollar
                                                                                                                                                          hedge                            term
     repurchase transactions


18   SUBSEQUENT                    EVENTS

     The     Company             evaluates            events     subsequent               to    December             31        2010                        the     date
                                                                                                                                         through                           on     which      the
     Statement           of Financial                Condition         is    issued            The                             does
                                                                                                        Company                        not    note         any      subsequent           events
     requiring          disclosure        or   adjustment         to the      Statement of Financial                       Condition




                                                                                           13


                                                                                                                                          Supplemental schedule
 MITSUBISHI                    UFJ SECURITIES                       USA INC
      wholly-owned                   subsidiary          of Mitsubishi         UFJ    Securities             Holdings         Co Ltd

 COMPUTATION OF NET CAPITAL FOR BROKERS AND DEALERS
 PURSUANT    TO RULE 15c3-1 UTDER THE SECURITIES EXCHANGE
 ACT OF 1934
 DECEMBER 31 2010

 NET CAPITAL
 Stockholders             equity
                                                                                                                                                      133176411
 Subordinated             liabilities
                                                                                                                                                       70000000
    Total       capital    and allowable             subordinated      liabilities
                                                                                                                                                     203176411


 NON-ALLOWABLE                        ASSETS
    Furniture          equipment          and leasehold improvements
                                                                                                                                                       10242856
    Receivable            from    brokers       dealers        and clearing   organizations
                                                                                                                                                       18272453
    Receivable            from    affiliates
                                                                                                                                                        4582290
    Deferred        tax    assets     and other       assets
                                                                                                                                                      21208920


      Total      non-allowable            assets
                                                                                                                                                      54306519


 OTHER DEDUCTIONS AND CHARGES
  Securities       Borrow/Loan             deficits
                                                                                                                                                       2248770
  Reverse        repo     deficiency
                                                                                                                                                         687322
  Other
                                                                                                                                                         609068
      Total      other deductions              and    charges
                                                                                                                                                       3545160


TOTAL DEDUCTIONS AND CHARGES
                                                                                                                                                      57851679


NET CAPITAL                  BEFORE HAIRCUTS ON SECURITIES
                                                                                                                                                     145324732


HAIRCUTS ON SECURITIES
   US     Government             obligations
                                                                                                                                                       6422405
   Municipal           obligations
                                                                                                                                                       5067902
   Corporate          obligations
                                                                                                                                                      20893626
   Equities
                                                                                                                                                       2074541
   Undue        concentration
                                                                                                                                                       1305085
      Total       haircuts
                                                                                                                                                      35763559


NET CAPITAL
                                                                                                                                                     109561173
MINIMUM            NET CAPITAL                  REQUIREMENT               Greater     of   $1000000            or   2%   of
                                                                                                                              aggregate
debit balances          plus     resale   surplus
                                                                                                                                                       1143993
CAPITAL          IN    EXCESS OF MINIMUM                         REQUIREMENT                                                                         108417180


 NOTE          There      were no material            differences     between the above          computation         and      the

 Companys          corresponding            amended        unaudited      FOCUS      report     filed   on    February        24 2011

                                                                                           14


                                                                                                Supplemental schedule
MITSUBISHI           UFJ SECURITIES               USA           INC
      wholly-owned            UFJ Securities
                           subsidiary         Holdings Co Ltd
                                           of Mitsubishi

STATEMENT OF SEGREGATION REQUIREMENTS        AND FUNDS IN SEGREGATION
FOR CUSTOMERS TRADING ON U.S COMMODITY EXCHANGES
DECEMBER 31 2010




The    Company       has    not    executed     any      commodity customer             transactions    Therefore      it   is   not

required    to segregate     any   funds in relation       to   these    transactions




NOTE       There   were    no   material   differences     between        the   above   computation    and   the   Companys
corresponding      amended        unaudited   FOCUS        report       filed   on February   24 2011




                                                                  15-


                                                                                                 Supplemental       schedule
MITSUBISHI           UFJ SECURITIES                 USA INC
      wholly-owned         subsidiary of Mitsubishi              UFJ    Securities Holdings       Co Ltd
STATEMENT OF SECURED AMOUNTS AN FUNDS HELD IN SEPARATE
ACCOUNTS FOR FOREIGN FUTURES AND FOREIGN OPTIONS CUSTOMERS
PURSUANT TO COMMISSION REGULATION 30.7
DECEMBER 31               2010




The    Company       has    not    executed        any   commodity customer            transactions    Therefore      it   is   not

required    to   secure any   funds      in   relation   to   these   transactions




NOTE       There   were    no material        differences     between    the   above   computation    and   the   Companys
corresponding      amended        unaudited      FOCUS report          filed   on February 24 2011




                                                                 -16-


Del                             tte                                                                                                                                      Deloitte

                                                                                                                                                                         Two World Financial Center
                                                                                                                                                                         New York NY 10281-1414
                                                                                                                                                                         USA

                                                                                                                                                                         Tel         2124362000
                                                                                                                                                                         Fax          2124365000
                                                                                                                                                                         www.deloitte.com
 February        28        2011



 Mitsubishi UFJ                   Securities           USA Inc
 1633      Broadway
 New York NY                         10019



 In   planning            and        performing              our audit            of the financial               statements of Mitsubishi                              UFJ      Securities

 USA Inc                  the        Company                        wholly-owned                 subsidiary           of Mitsubishi UFJ                      Securities          Holdings
 Co Ltd              as    of and          for the
                                                         year ended               December 31 2010                      on     which           we     issued          our report           dated

February             28         2011         and       such         report         expressed            an     unqualified                opinion           on        those      financial

 statements               in     accordance               with      auditing            standards            generally accepted                      in    the       United      States        of

America              we         considered             the      Companys                  internal       control         over            financial          reporting           internal
control           as             basis       for       designing           our auditing               procedures              for       the    purpose           of     expressing            an

opinion         on     the       financial             statements            but        not     for   the                      of expressing
                                                                                                              purpose                                           an     opinion        on     the

effectiveness               of the         Companys              internal          control                                     we        do    not express an
                                                                                                      Accordingly                                                              opinion        on
the effectiveness                    of the       Companys                internal       control




Also       as   required              by Rule          17a-5g1                of the          Securities        and     Exchange Commission the                                  SEC
we     have      made                 study        of the                           and                               followed
                                                                 practices                      procedures                                by     the       Company              including
consideration                   of    control          activities          for                                 securities               This                     included
                                                                                   safeguarding                                                  study                               tests    of

compliance                with        such        practices         and      procedures               that    we      considered               relevant          to    the     objectives
stated     in    Rule            17a-5g             in    the    following                       making          the
                                                                                                                        periodic              computations                  of aggregate
debits     and        net                        under       Rule     17a-3aXI                   and     the     reserve
                                capital                                                                                            required          by Rule            15c3-3e
making          the       quarterly              securities         examinations                 counts         verifications                  and        comparisons                and     the

recordation            of differences                                              Rule                                                        with       the
                                                         required          by                   17a-13                complying                                  requirements                for

prompt        payment                for    securities         under        Section              of Federal        Reserve               Regulation                   of the Board            of
Governors            of the Federal                 Reserve          System             and           obtaining and                maintaining              physical           possession
or control        of      all               paid and           excess                      securities          of customers as required
                                 fully                                      margin                                                                               by Rule         15c3-3



In    addition            as                        by Regulation                   1.16        of the                                  Futures
                                 required                                                                    Commodity                                    Trading           Commission
CFTC             we        have           made            study       of the            practices        and     procedures                   followed           by     the    Company
including         consideration                    of control             activities          for                                  customer           and        firm
                                                                                                      safeguarding                                                          assets         This

study      included              tests       of     such        practices           and         procedures             that        we     considered                 relevant         to     the

objectives           stated          in    Regulation            1.16        in    the    following                    making            the    periodic                                      of
                                                                                                                                                                     computations
minimum          financial                requirements              pursuant to Regulation                       1.17               making           the daily          computations
of the     segregation                    requirements              of Section             4da2              of the      Commodity                   Exchange Act and                        the

regulations           thereunder                 and     the    segregation              of funds based            on        such                                     and
                                                                                                                                        computations                                 making
the              computations                     of the                     futures          and                                       secured
      daily                                                    foreign                                 foreign        options                             amount requirements
pursuant to Regulation                           30.7 of the         CFTC

The     management of                      the    Company            is   responsible            for establishing                  and                                internal       control
                                                                                                                                          maintaining
and     the     practices              and        procedures              referred         to    in    the                                                       In
                                                                                                               preceding                paragraphs                      fulfilling          this

responsibility                  estimates           and      judgments              by management                      are                       to                     the
                                                                                                                               required                    assess               expected
benefits        and       related           costs       of     controls           and     of the        practices            and                             referred
                                                                                                                                     procedures                                 to    in     the




                                                                                                                                                                         Member       of

                                                                                                                                                                         Deloitte     Touche Tohmatsu


 preceding               paragraphs                  and    to       assess       whether              those                           and                                       be
                                                                                                                    practices                     procedures           can              expected             to
 achieve           the     SECs            and       the    CFTCs                above-mentioned                     objectives              Two        of the objectives                   of internal
 control           and        the    practices              and        procedures               are       to                                                  with     reasonable                 but
                                                                                                                provide           management                                                             not
 absolute           assurance                 that    assets          for   which           the                            has responsibility
                                                                                                    Company                                                    are     safeguarded                against
 loss    from           unauthorized                  use or disposition                       and        that      transactions             are    executed           in    accordance                 with

 managements                       authorization                 and       recorded            properly to permit preparation                                   of financial                statements
 in     conformity                  with        generally              accepted               accounting              principles              Rule           17a-5g           and        Regulation
 1.1   6d2                list      additional              objectives                 of     the      practices            and       procedures               listed       in    the        preceding
 paragraphs



 Because            of inherent                 limitations                in internal            control           and     the                         and                                 referred
                                                                                                                                    practices                   procedures                                   to

 above            error       or    fraud                  occur           and     not be         detected
                                                 may                                                                  Also          projection           of any        evaluation                 of them
       future
                                                                                                               may become
 to                 periods              is    subject          to    the       risk    that                                                                    because               of changes
                                                                                                  they                                   inadequate                                                          in

 conditions              or that         the     effectiveness                  of their design and                      operation           may deteriorate

       deficiency              in    internal          control          exists          when        the      design or operation                        of      control          does        not allow

management                     or    employees                   in     the       normal            course          of performing                  their        assigned              functions              to

prevent             or    detect           and                         misstatements
                                                      correct                                           on          timely basis                        signflcant               deficiency             is


deficiency                or     combination                    of deficiencies                   in    internal           control       that      is   less    severe than                   material

weakness                yet    important enough to merit attention                                             by those charged                    with governance



      material weakness                         is      deficiency                or    combination                 of deficiencies                 in internal                              such       that
                                                                                                                                                                         control
there         is          reasonable                                             that          material             misstatement                  of
                                                      possibility                                                                                        the        Companys                 financial

statements               will       not be prevented                       or    detected and                corrected           on         timely basis


Our      consideration                   of internal                 control       was        for      the     limited                            described
                                                                                                                              purpose                                 in the          first       second
and     third       paragraphs                  and        would not                                                          all     deficiencies
                                                                                  necessarily                identify                                          in     internal         control          that

might         be        material           weaknesses                       We      did       not      identify            any      deficiencies               in   internal           control          and
control           activities          for      safeguarding                 securities              and      certain        regulated             commodity customer                          and       finn
assets that             we     consider to be material                             weaknesses                  as   defined above



We      understand                  that       practices             and        procedures              that      accomplish                the    objectives           referred             to    in    the

second            and    third       paragraphs                 of this report                 are     considered by the                     SEC         and    CFTC             to    be    adequate
for     their                              in    accordance                 with         the      Securities                                  Act        of
                    purposes                                                                                               Exchange                             1934        the        Commodity
Exchange Act                       and     related         regulations                  and    that       practices           and                              that    do not accomplish
                                                                                                                                       procedures
such                                in          material                                indicate
         objectives                      all                         respects                                  material          inadequacy              for    such     purposes                  Based
on     this   understanding                      and       on    our study              we     believe            that     the    Companys               practices          and        procedures
as     described              in the          second        and        third                                 of
                                                                                   paragraphs                       this     report         were        adequate         at      December               31
2010         to    meet        the    SECs            and       CFTCs             objectives


This report              is   intended            solely         for the          information and                    use of the Board of Directors                                management
the    SEC         the        CFTC             Financial             Industry Regulatory                        Authority             Inc         and    other        regulatory             agencies
that               on     Rule           7a-5g             under           the    Securities
        rely                                                                                              Exchange Act of 1934                           or    Regulation               1.16       of the
CFTC         or     both in their regulation                            of registered                  broker-dealers                 and    futures          commission merchants
and     is   not intended to be and                             should not be used                        by anyone              other      than these          specified              parties




Yours        truly



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