G-405 PART II Report on Finances and Operations of Government Securiti

FORM
G-405

OMB APPROVAL
OMB # 1530-0064

REPORT ON FINANCES AND OPERATIONS OF
GOVERNMENT SECURITIES BROKERS AND DEALERS

PART II

11

(Please read instructions before preparing Form.)
This report is being filed pursuant to (check applicable block(s)):
1) 17 CFR 405.2 & Rule 17a-5(a)

16

2) 17 CFR 405.2 & Rule 17a-5(b)

4) Special request by designated examining authority

3) 17 CFR 405.3 & Rule 17a-11

17

5) Other

19

18

26

SEC FILE NO.

NAME OF GOVERNMENT SECURITIES BROKER OR DEALER

14
13

FIRM ID. NO.

ADDRESS OF PRINCIPAL PLACE OF BUSINESS (Do Not Use P.O. Box No.)

15
FOR PERIOD BEGINNING (MMDDYYYY)
20

(No. and Street)
21

23

22

(City)

24
AND ENDING (MMDDYYYY)

(State)

25

(ZIP Code)

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

(Area Code) - Telephone No.
30

NAME(S) OF SUBSIDIARIES OR AFFILIATES CONSOLIDATED IN THIS REPORT:

31
OFFICIAL USE

32

33

34

35

36

37

38

39

DOES RESPONDENT CARRY ITS OWN CUSTOMER ACCOUNTS?

YES

40

CHECK HERE IF RESPONDENT IS FILING AN AUDITED REPORT

NO

41
42

EXECUTION:
The registrant/government securities broker or dealer submitting this Form and its attachments and the
person(s) by whom it is executed represent hereby that all information contained therein is true, correct
and complete. It is understood that all required items, statements, and schedules are considered
integral parts of this Form and that the submission of any amendment represents that all unamended
items, statements and schedules remain true, correct and complete as previously submitted.

Dated the
Manual signatures of:

day of

1)
Principal Executive Officer or Managing Partner

2)
Principal Financial Officer or Partner

3)
Principal Operations Officer or Partner
ATTENTION - Intentional misstatements or omissions of facts constitute Federal
Criminal Violations. (See 18 U.S.C. 1001 and 15 U.S.C. 78:f(a).)

in the year

TO BE COMPLETED WITH THE ANNUAL AUDIT REPORT ONLY:

INDEPENDENT PUBLIC ACCOUNTANT whose opinion is contained in this Report

Name (If individual, state last, first, middle name)
70

ADDRESS

Number and Street
71

City

State

72

73

ZIP Code
74

Check one
( )

Certified Public Accountant

75

( )

Public Accountant

76

( )

Accountant not resident in United States or
any of its possessions

77

FOR SEC USE

DO NOT WRITE UNDER THIS LINE . . . FOR SEC USE ONLY

WORK LOCATION

50

REPORT DATE
MMDDYYYY

DOC. SEQ. NO.

51

CARD

52

53

Form G-405 Part II

REPORT ON FINANCES AND OPERATIONS OF
GOVERNMENT SECURITIES BROKERS AND DEALERS
PART II
GOVERNMENT SECURITIES BROKER OR DEALER

N2

100

STATEMENT OF FINANCIAL CONDITION
99

as of (MMDDYYYY)
SEC FILE NO.

ASSETS

Consolidated
Unconsolidated

Allowable

1. Cash . . . . . . . . . . . . . . . . . . . . . . . . . . $
2. Cash segregated in compliance with
federal and other regulations . . . . . . . .
3. Receivables from brokers or dealers and
clearing organizations:
A. Failed-to-deliver:
1. Includable in “Formula for Reserve
Requirements” . . . . . . . . . . . . . . .
2. Other . . . . . . . . . . . . . . . . . . . . . .
B. Securities borrowed:
1. Includable in “Formula for Reserve
Requirements” . . . . . . . . . . . . . . .
2. Other . . . . . . . . . . . . . . . . . . . . . .
C. Omnibus accounts:
1. Includable in “Formula for Reserve
Requirements” . . . . . . . . . . . . . . .
2. Other . . . . . . . . . . . . . . . . . . . . . .
D. Clearing organizations:
1. Includable in “Formula for Reserve
Requirements” . . . . . . . . . . . . . . .
2. Other . . . . . . . . . . . . . . . . . . . . . .
E. Other . . . . . . . . . . . . . . . . . . . . . . . .
4. Receivables from customers:
A. Securities accounts:
1. Cash and fully secured accounts .
2. Partly secured accounts . . . . . . . .
3. Unsecured accounts . . . . . . . . . .
B. Commodity accounts . . . . . . . . . . . .
C. Allowances for doubtful accounts . . . (
5. Receivables from non-customers:
A. Cash and fully secured accounts . . .
B. Partly secured and unsecured
accounts . . . . . . . . . . . . . . . . . . . . .
6. Securities purchased under agreements
to resell . . . . . . . . . . . . . . . . . . . . . . . .
7. Securities and spot commodities owned,
at market value:
A. Bankers acceptances, certificates of
deposit and commercial paper . . . . .
B. U.S. and Canadian government
obligations . . . . . . . . . . . . . . . . . . . .
C. State and municipal government
obligations . . . . . . . . . . . . . . . . . . . .
D. Corporate obligations . . . . . . . . . . . .

98
198

Non-Allowable

199

Total

200

$

750
760

210

220
230

770

240

780

250

260

790

270

280
290
300

800
550

$

810

310
320

560
570

330

)

335

(

)

590

820

350

600

830

360

605

840

340

370

380

390
400

OMIT PENNIES
Page 1

Form G-405 Part II

REPORT ON FINANCES AND OPERATIONS OF
GOVERNMENT SECURITIES BROKERS AND DEALERS
PART II
GOVERNMENT SECURITIES BROKER OR DEALER
as of
STATEMENT OF FINANCIAL CONDITION

ASSETS (continued)
Allowable

E. Stocks and warrants . . . . . . . . . . . .
F. Options . . . . . . . . . . . . . . . . . . . . . .
G. Arbitrage . . . . . . . . . . . . . . . . . . . . .
H. Other securities . . . . . . . . . . . . . . . .
I. Spot commodities . . . . . . . . . . . . . .
8. Securities owned not readily marketable:

Non-Allowable

Total

410

$

420
422
424
430

130
A. At cost $
B. At estimated fair value . . . . . . . . . . .
9. Other investments not readily
marketable:

$

850

610

860

450

620

870

460

630

880

470

640

890

440

$

140

A. At cost $
B. At estimated fair value . . . . . . . . . . .
10. Securities borrowed under subordination
agreements and partners’ individual and
capital securities accounts, at market
value:
A. Exempted
150
securities $
160
$
B. Other
11. Secured demand notes - market value
of collateral:
A. Exempted
170
securities $
180
$
B. Other
12. Memberships in exchanges:
A. Owned, at market
190
$
value
B. Owned, at cost. . . . . . . . . . . . . . . . .
C. Contributed for use of company,
at market value . . . . . . . . . . . . . . . .
13. Investment in and receivables from
affiliates, subsidiaries and associated
partnerships . . . . . . . . . . . . . . . . . . . . .
14. Property, furniture, equipment, leasehold
improvements and rights under lease
agreements, at cost (net of accumulated
depreciation and amortization) . . . . . . .
15. Other assets:
A. Dividends and interest receivable. . .
B. Free shipments . . . . . . . . . . . . . . . .
C. Loans and advances . . . . . . . . . . . .
D. Miscellaneous . . . . . . . . . . . . . . . . .
16.
TOTAL ASSETS . . . . . . . . . .

650

660

900

480

670

910

490

680

920

500

690

510

700

520

710

530
540

$

930

720
$

740

$

940

OMIT PENNIES
Page 2

Form G-405 Part II

REPORT ON FINANCES AND OPERATIONS OF
GOVERNMENT SECURITIES BROKERS AND DEALERS
PART II
GOVERNMENT SECURITIES BROKER OR DEALER

as of

STATEMENT OF FINANCIAL CONDITION
LIABILITIES AND OWNERSHIP EQUITY
Total

Liabilities
17. Bank loans payable:
A. Includable in “Formula for Reserve Requirements” . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
B. Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
18. Securities sold under repurchase agreements . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
19. Payable to brokers or dealers and clearing organizations:
A. Failed-to-receive:
1. Includable in “Formula for Reserve Requirements” . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
2. Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
B. Securities loaned:
1. Includable in “Formula for Reserve Requirements” . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
2. Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
C. Omnibus accounts:
1. Includable in “Formula for Reserve Requirements” . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
2. Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
D. Clearing organizations:
1. Includable in “Formula for Reserve Requirements” . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
2. Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
E. Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
20. Payable to customers:
950
$
A. Securities accounts—including free credits of . . . . . . . . . . . . . . . .
B. Commodities accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
21. Payable to non-customers:
A. Securities accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
B. Commodities accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
960
22. Securities sold not yet purchased, at market value—including arbitrage of $
23. Accounts payable and accrued liabilities and expenses:
A. Drafts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
B. Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
C. Income taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
D. Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
E. Accrued expenses and other liabilities . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
F. Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
24. Notes and mortgages payable:
A. Unsecured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
B. Secured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .
25. Liabilities subordinated to claims of general creditors:
A. Cash borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
970
1. From outsiders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
980
$
2. Includes equity subordination (15c3-1(d)) of . . . . . . . . . . . . . . . .
B. Securities borrowings, at market value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
990
1. From outsiders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
C. Pursuant to secured demand note collateral agreements . . . . . . . . . . . . . . . . . . . . . . . . . . .
1000
1. From outsiders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
1010
$
2. Includes equity subordination (15c3-1(d)) of . . . . . . . . . . . . . . . .
D. Exchange memberships contributed for use of company, at market value . . . . . . . . . . . . . . . . .
E. Accounts and other borrowings not qualified for liquid capital purposes . . . . . . . . . . . . . . . . . . .
26.
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .

$

1460
1470
1480

1490
1500

1510
1520

1530
1540

1550
1560
1570

1580
1590

1600
1610
1620

1630
1640
1650
1660
1670
1680

1690
1700

1710

1720

1730

1740
1750

$

1760

OMIT PENNIES
Page 3

Form G-405 Part II

REPORT ON FINANCES AND OPERATIONS OF
GOVERNMENT SECURITIES BROKERS AND DEALERS
PART II
GOVERNMENT SECURITIES BROKER OR DEALER

as of

STATEMENT OF FINANCIAL CONDITION
LIABILITIES AND OWNERSHIP EQUITY (continued)
Total
Ownership Equity
27. Sole proprietorship . . . . . . . . . . . . . .
28. Partnership—limited partners . . . . . . .
29. Corporation:
A. Preferred stock . . . . . . . . . . . . . . .
B. Common stock . . . . . . . . . . . . . . .
C. Additional paid-in capital . . . . . . . .
D. Retained earnings . . . . . . . . . . . . .
E. Total . . . . . . . . . . . . . . . . . . . . . . .
F. Less capital stock in treasury . . . . .
30.
TOTAL OWNERSHIP EQUITY
31.

1770

$

..........................................
. . . . . . . . . . . . . . . . . . . . . . . .$

1020

1780

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1791

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$

1800

TOTAL LIABILITIES AND OWNERSHIP EQUITY . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .

$

1810

1792
1793
1794
1795

(

)

1796

OMIT PENNIES

Page 4

Form G-405 Part II

REPORT ON FINANCES AND OPERATIONS OF
GOVERNMENT SECURITIES BROKERS AND DEALERS
PART II
GOVERNMENT SECURITIES BROKER OR DEALER

as of

COMPUTATION OF LIQUID CAPITAL
Total
1.
2.
3.
4.

5.
6.

7.
8.
9.

10.

Total ownership equity (from Statement of Financial Condition—Item 1800) . . . . . . . . . . . . . . . . . .
Deduct: Ownership equity not allowable for liquid capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total ownership equity qualified for liquid capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Add:
A. Liabilities subordinated to claims of general creditors
allowable in computation of liquid capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Other (deductions) or allowable credits (List) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total capital and allowable subordinated liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deductions and/or charges:
A. Total non-allowable assets from Statement of Financial Condition
3540
(Notes B and C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
1. Additional charges for customers’ and
3550
non-customer’s security accounts . . . . . . . . . . . . . . . . . . . . .
3570
B. Aged fails-to-deliver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3450
1. Number of items . . . . . . . . . . .
C. Aged short security differences—less
3460
3580
reserve of . . . . . . . . . . . . . . . . . . $
3470
1. Number of items . . . . . . . . . . .
3590
D. Secured demand note deficiency . . . . . . . . . . . . . . . . . . . . . . . .
3610
E. Other deductions and/or charges . . . . . . . . . . . . . . . . . . . . . . . .
3615
F. Deductions for accounts carried under Rule 15c3-1(c)(2)(x) . . . .
G. Total deductions and/or charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other additions and/or allowable credits (List) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liquid capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total haircuts (computed pursuant to 17 CFR 402.2(g) and Appendix A thereto):
A. Haircuts on security and financing positions including contractual commitments:
3730
1. Total governments offset portion haircut . . . . . . . . . . . . . . . . .
3731
2. Total futures and options offset haircut . . . . . . . . . . . . . . . . . .
3732
3. Total hedging disallowance haircut . . . . . . . . . . . . . . . . . . . . .
3733
4. Residual net position haircut . . . . . . . . . . . . . . . . . . . . . . . . .
3734
5. Other securities haircut (Use SEC factors) . . . . . . . . . . . . . . .
B. Haircuts on credit exposure:
3735
1. Counterparty exposure haircut . . . . . . . . . . . . . . . . . . . . . . . .
3736
2. Concentration of credit haircut . . . . . . . . . . . . . . . . . . . . . . . .
3737
3. Credit volatility haircut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liquid capital less haircuts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3480

$

(

)

3490
3500

3520
3525
3530

$

(

)

3620
3630

$

3640

$

3740

$

3750

$

3756

$

3760

$

3770

COMPUTATION OF BASIC LIQUID CAPITAL REQUIREMENT
11.
12.
13.
14.

120% liquid capital requirement (120% of line 9) . . . . . . .
Minimum liquid capital requirement (see Note A) . . . . . . .
Excess liquid capital (line 8 less line 12). . . . . . . . . . . . . .
Excess liquid capital at 150% (line 8 less 150% of line 9) .

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.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

....
....
....
....

$

3780

OTHER RATIOS
15. Percentage of debt to debt-equity total computed in accordance with Rule 15c3-1(d)
as modified by 17 CFR 402.2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Page 5

%

3860

Form G-405 Part II

NOTES:
(A) The minimum liquid capital requirement is the greater of:
1. The amount of liquid capital necessary to exceed total haircuts by the amount required pursuant
to 17 CFR 402.2(b) or (c); or
2. 120% of total haircuts.
(B) Do not deduct the value of securities borrowed under subordination agreements or secured demand notes
covered by subordination agreements not in satisfactory form, the market values of memberships in
exchanges contributed for use of company (contra to item 1740), and partners’ securities which were
included in non-allowable assets.
(C) For reports filed pursuant to 17 CFR 405.2 & paragraph (d) of Rule 17a-5, respondent should provide a list of
material non-allowable assets.

Page 6

Form G-405 Part II

REPORT ON FINANCES AND OPERATIONS OF
GOVERNMENT SECURITIES BROKERS AND DEALERS
PART II
GOVERNMENT SECURITIES BROKER OR DEALER For the period (MMDDYYYY) from
Number of months included in this statement

3932

REVENUE
STATEMENT OF INCOME (LOSS)
1. Commissions:
A. Commissions on listed option transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. All other securities commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C. Total securities commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Gains or losses on firm securities trading accounts:
A. From trading in debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. From market making in options on a national securities exchange . . . . . . . . . . . . . . . . . . . . . . .
C. From all other trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D. Total gains or (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Gains or losses on firm securities investment accounts:
4235
A. Includes realized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . .
4236
B. Includes unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . .
C. Total realized and unrealized gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Profits or (losses) from underwriting and selling groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Margin interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Fees for account supervision, investment advisory and administrative services. . . . . . . . . . . . . . . .
7. Revenue from research services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8. Commodities revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9. Other revenue related to securities business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10. Other revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11. Total revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EXPENSES
12. Registered representatives’ compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13. Clerical and administrative employees’ expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14. Salaries and other employment costs for general partners and voting stockholder officers . . . . . . .
A. Includes interest credited to General and Limited Partners
4130
capital accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15. Floor brokerage paid to certain brokers (see definition) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16. Commissions and clearance paid to all other brokers (see definition) . . . . . . . . . . . . . . . . . . . . . . .
17. Clearance paid to non-brokers (see definition) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18. Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19. Occupancy and equipment costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20. Promotional costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21. Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4070
A. Includes interest on accounts subject to subordination agreements
22. Losses in error account and bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23. Data processing costs (including service bureau service charges) . . . . . . . . . . . . . . . . . . . . . . . . .
24. Non-recurring charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25. Regulatory fees and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26. Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27. Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NET INCOME
28. Income (loss) before Federal income taxes and items below (item 11 less item 27). . . . . . . . . . . . .
29. Provision for Federal income taxes (for parent only) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30. Equity in earnings (losses) of unconsolidated subsidiaries not included above. . . . . . . . . . . . . .
4238
A. After Federal income taxes of . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31. Extraordinary gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4239
A. After Federal income taxes of . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32. Cumulative effect of changes in accounting principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33. Net income (loss) after Federal income taxes and extraordinary items . . . . . . . . . . . . . . . . . . . . . .
MONTHLY INCOME
34. Income (current month only) before provision for Federal income taxes and extraordinary times. . .
Page 7

3933

to

3931

$

3938
3939
3940

3944
3945
3949
3950

3952
3955
3960
3975
3980
3990
3985
3995

$

$

4030

4110
4040
4120

4055
4145
4135
4060
4080
4150
4075

4170
4186
4190
4195
4100

$

4200

$

4210
4220
4222

4224

4225

$

$

4230

4211

Form G-405 Part II

REPORT ON FINANCES AND OPERATIONS OF
GOVERNMENT SECURITIES BROKERS AND DEALERS
PART II
GOVERNMENT SECURITIES BROKER OR DEALER
as of
COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS
FOR GOVERNMENT SECURITIES BROKERS AND DEALERS UNDER RULE 15c3-3
(See Rule 15c3-3, Exhibit A and Related Notes)
CREDIT BALANCES
1. Free credit balances and other credit balances in customers’
4340
security accounts (see Note A in Exhibit A, Rule 15c3-3) . . . . . . . . . . . . . . . . $
2. Monies borrowed collateralized by securities carried for the accounts
4350
of customers (see Note B in Exhibit A, Rule 15c3-3). . . . . . . . . . . . . . . . . .
3. Monies payable against customers’ securities loaned (see Note C in Exhibit
4360
A, Rule 15c3-3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4370
4. Customers’ securities failed-to-receive (see Note D in Exhibit A, Rule 15c3-3)
5. Credit balances in firm accounts which are attributable to
4380
principal sales to customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. Market value of stock dividends, stock splits, and similar distributions
4390
receivable outstanding over 30 calendar days . . . . . . . . . . . . . . . . . . . . .
4400
7. Market value of short security count differences over 30 calendar days old
8. Market value of short securities and credits (not to be offset by longs or by
4410
debits) in all suspense accounts over 30 calendar days . . . . . . . . . . . . .
9. Market value of securities which are in transfer in excess of 40 calendar days
and have not been confirmed to be in transfer by the transfer agent or
4420
the issuer during the 40 days . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4425
10. Other (List) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11. TOTAL CREDITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEBIT BALANCES
12. Debit Balances in customers’ cash and margin accounts excluding unsecured
accounts and accounts doubtful of collection net of deductions pursuant
4440
to 17 CFR 403.4(k) & Note E, Exhibit A, Rule 15c3-3 . . . . . . . . . . . . . . . $
13. Securities borrowed to effectuate short sales by customers and
securities borrowed to make delivery on customers’
4450
securities failed-to-deliver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4460
14. Failed-to-deliver of customers’ securities not older than 30 calendar days
15. Margin required and on deposit with the Options Clearing Corporations for all
option contracts written or purchased in customer accounts (see Note F
4465
in Exhibit A, Rule 15c3-3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4469
16. Other (List) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17. Aggregate debit items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18. TOTAL 15c3-3 DEBITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RESERVE COMPUTATION
19. Excess of total debits over total credits (line 18 less line 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20. Excess of total credits over total debits (line 11 less line 18) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21. If computation permitted on a monthly basis, enter 105% of excess of total credits over total debits
22. Amount held on deposit in “Reserve Bank Account(s),” including value of qualified securities,
at the end of reporting period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23. Amount of deposit (or withdrawal) including
4515 value of qualified securities
$
24. New amount in Reserve Bank Account(s) after adding deposit or subtracting withdrawal including
4525 value of qualified securities
$
25. Date of deposit (MMDDYYYY) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

..
..

$

4430

$

4470

$

$

4472

4480
4490
4500

4510

..

4520

$

..

4530
4540

OMIT PENNIES

FREQUENCY OF COMPUTATION
4332
26. Daily
Weekly

4333

Page 8

Monthly

4334

Form G-405 Part II

REPORT ON FINANCES AND OPERATIONS OF
GOVERNMENT SECURITIES BROKERS AND DEALERS
PART II
GOVERNMENT SECURITIES BROKER OR DEALER
as of

COMPUTATION FOR DETERMINATION OF RESERVE REQUIREMENTS
FOR GOVERNMENT SECURITIES BROKERS AND DEALERS UNDER RULE 15c3-3 (continued)
EXEMPTIVE PROVISIONS
27. If an exemption from 17 CFR 240.15c3-3 (Rule 15c3-3) is claimed, identify below the
section upon which such exemption is based (check one only):
A. (k)(2)(i)—“Special Account for the Exclusive Benefit of Customer” maintained . . . . . . . . . . . . . . .
B. (k)(2)(ii)—All customer transactions cleared through another
broker or dealer on a fully disclosed basis. Name of clearing
4335
firm
C. (k)(3)—Exempted by order of the Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$

4560

4570
4580

Information for Possession or Control Requirements Under Rule 15c3-3

State the market valuation and the number of items of:
1. Customers’ fully paid securities and excess margin securities not in the respondent’s possession
or control as of the report date (for which instructions to reduce to possession or control had
been issued as of the report date) but for which the required action was not taken by
respondent within the time frames specified under 17 CFR 403.4 & Rule 15c3-3, Notes A and B . . .
A. Number of items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Customers’ fully paid securities and excess margin securities for which instructions to reduce
to possession or control had not been issued as of the report date, excluding items arising
from “temporary lags which result from normal business operations” as permitted under
17 CFR 403.4 & Rule 15c3-3, Notes B, C and D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A. Number of items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. The system and procedures utilized in complying with the requirement to maintain physical
possession or control of customers’ fully paid and excess margin securities have been tested
and are functioning in a manner adequate to fulfill the requirements of 17 CFR 403.4 &
Rule 15c3-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes

4584

$

4586
4587

$

4588
4589

OMIT PENNIES

No

4585

NOTES
A— Do not include in item (1) above customers’ fully paid and excess margin securities required by 17
CFR 403.4 & Rule 15c3-3 to be in possession or control but for which no action was required by
the respondent as of the report date or required action was taken by respondent within the time
frames specified under 17 CFR 403.4 & Rule 15c3-3.
B— State separately in response to items (1) and (2) above whether the securities reported in response
thereto were subsequently reduced to possession or control by the respondent.
C—Be sure to include in item (2) above only items not arising from “temporary lags which result from
normal business operations” as permitted under 17 CFR 403.4 & Rule 15c3-3.
D—Response to item (2) above must be via a report which is current as of the date selected for the
government securities broker’s or dealer’s annual audit of financial statements, whether or not such
date is the end of the calendar quarter. The response to item (2) should be filed within 60 calendar
days after such date, rather than with the remainder of this report. This information maybe required
on a more frequent basis by the Commission or the designated examining authority in accordance
with 17 CFR 405.2 & Rule 17a-5(a)(2)(iv).

Page 9

Form G-405 Part II

REPORT ON FINANCES AND OPERATIONS OF
GOVERNMENT SECURITIES BROKERS AND DEALERS
PART II
GOVERNMENT SECURITIES BROKER OR DEALER
as of

Ownership Equity and Subordinated Liabilities maturing or proposed to be
withdrawn within the next six months and accruals (as defined below)
which have not been deducted in the computation of liquid capital.

Type of Proposed
Withdrawal or
Accrual
(See below for code
to enter)

Name of
Lender or
Contributor

Amount to be Withdrawn (cash amount
and/or Liquid Capital
Value of Securities)

Insider or
Outsider?
(In or Out)

4600

4601

4602

4610

4611

4620

(MMDDYYYY)
Withdrawal or
Maturity
Date

Expect
to
Renew
(yes or no)

4603

4604

4605

4612

4613

4614

4615

4621

4622

4623

4624

4625

4630

4631

4632

4633

4634

4635

4640

4641

4642

4643

4644

4645

4650

4651

4652

4653

4654

4655

4660

4661

4662

4663

4664

4665

4670

4671

4672

4673

4674

4675

4680

4681

4682

4683

4684

4685

4690

4691

4692

4693

4694

4695

Total

$

$

4699*

OMIT PENNIES
* To agree with the total on Recap (Item No. 4880)

Instructions:

Detail listing must include the total of items maturing during the six month period following
the report date, regardless of whether or not the capital contribution is expected to be renewed.
The schedule must also include proposed capital withdrawals scheduled within the six month
period following the report date including the proposed redemption of stock and payments
of liabilities secured by fixed assets (which are considered allowable assets in the capital
computation pursuant to Rule 15c3-1(c)(2)(iv)), which could be required by the lender on
demand or in less than six months.

WITHDRAWAL CODE:
–1.
–2.
–3.
–4.

DESCRIPTION
Equity Capital
Subordinated Liabilities
Accruals
15c3-1(c)(2)(iv) Liabilities

Page 10

Form G-405 Part II

REPORT ON FINANCES AND OPERATIONS OF
GOVERNMENT SECURITIES BROKERS AND DEALERS
PART II
GOVERNMENT SECURITIES BROKER OR DEALER
For the period (MMDDYYYY) from

to

CAPITAL WITHDRAWALS
RECAP
Ownership Equity and Subordinated Liabilities maturing or proposed to
be withdrawn within the next six months and accruals which have
not been deducted in the computation of liquid capital.
1. Equity Capital
A. Partnership Capital:
4700
1. General Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
4710
2. Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4720
3. Undistributed Profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4730
4. Other (describe below) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4735
5. Sole Proprietorship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Corporation Capital:
4740
1. Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4750
2. Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4760
3. Retained Earnings (Dividends and other) . . . . . . . . . . . . . . . . . .
4770
4. Other (describe below) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Subordinated Liabilities
4780
A. Secured Demand Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4790
B. Cash Subordinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4800
C. Debentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4810
D. Other (describe below) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Other Anticipated Withdrawals
4820
A. Bonuses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4860
B. Voluntary Contributions to Pension or Profit Sharing Plans . . . . . . .
4870
C. Other (describe below) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Description of Other

4880

$

STATEMENT OF CHANGES IN OWNERSHIP EQUITY
(SOLE PROPRIETORSHIP, PARTNERSHIP OR CORPORATION)
1. Balance, beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A. Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4262 )
B. Additions (Includes non-conforming capital of . . . . . . . . . . . . . . . . $
4272
C. Deductions (Includes non-conforming capital of . . . . . . . . . . . . . . . $
)
2. Balance, end of period (From Item1800) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4240

$

4250
4260

(

)

4270

$

4290

$

4300

STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED
TO CLAIMS OF GENERAL CREDITORS
3. Balance, beginning of period . . . . . . . . . .
A. Increases . . . . . . . . . . . . . . . . . . . . . .
B. Decreases. . . . . . . . . . . . . . . . . . . . . .
4. Balance, end of period (From Item 3520) .

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
.

.
.
.
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4310

(
$

)

4320
4330

OMIT PENNIES

Page 11

Form G-405 Part II

REPORT ON FINANCES AND OPERATIONS OF
GOVERNMENT SECURITIES BROKERS AND DEALERS
PART II
GOVERNMENT SECURITIES BROKER OR DEALER

as of

FINANCIAL AND OPERATIONAL DATA

Number

Valuation
1. Month-end total number of stock record breaks unresolved over
three business days:
4890
A. Breaks long . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
4910
$
B. Breaks short . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Is the firm in compliance with 17 CFR 404.5 & Rule 17a-13
regarding periodic count and verification of securities positions
Yes
4930
and locations at least once in each calendar quarter? (Check one) . . . . . . . . . . . . . . .
A. If a response is negative attach explanation of steps being taken
to comply with 17 CFR 404.5 & Rule 17a-13.
3. Personnel employed at end of reporting period:
A. Income producing personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Non-income producing personnel (all other) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C. Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Actual number of tickets executed during current month of reporting period. . . . . . . . . . . . . . . . . . . . . . . .
5. Number of corrected customer confirmations mailed after settlement date. . . . . . . . . . . . . . . . . . . . . . . . .
Debit (Short Value)

No. of Items

6.
7.
8.
9.
10.

11.
12.
13.
14.

Money differences . . . . . . . . . . . . . . . .
Security suspense accounts . . . . . . . . .
Security difference accounts . . . . . . . . .
Commodity suspense accounts . . . . . .
Open transactions with correspondents,
other brokers, clearing organizations,
depositories and interoffice and
intercompany accounts which could
result in a charge-amounts unresolved
over 30 calendar days . . . . . . . . . . . . .
Bank account reconciliations-amounts
unresolved over 30 calendar days . . . .
Open transfers not confirmed over 40
calendar days . . . . . . . . . . . . . . . . . . . .
Transactions in reorganization accounts
over 60 calendar days . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . .

.
.
.
.

.
.
.
.
.

4900
4920

No

4940

4950
4960
4970
4980
4990

Credit (Long Value)

No. of Items

5000

$

5010

5020

$

5030

5040

$

5050

5060

$

5070

5080

$

5090

5100

$

5110

5120

$

5130

5140

$

5150

5160

$

5170

5180

$

5190

5200

$

5210

5220

$

5230

5240

$

5250

5260

$

5270

5280

$

5290

5300

$

5310

5320

$

5330

5340

$

5350

Ledger Amount
No. of Items
15. Failed-to-deliver 5 business days or longer (21 business
5361
5360 $
days or longer in the case of municipal securities) . . . . . . . . . .
16. Failed-to-receive 5 business days or longer (21 business
5364
5363 $
days or longer in the case of municipal securities) . . . . . . . . . .
17. Security concentrations (See instructions in Part I):
A. Customers’ accounts under 17 CFR 403.4 & Rule 15c3-3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18. Total of personal capital borrowings due within six months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19. Maximum haircuts on underwriting commitments during the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20. Planned capital expenditures for business expansion during the next six months . . . . . . . . . . . . . . . . . . .
21. Liabilities of other individuals or organizations guaranteed by respondent . . . . . . . . . . . . . . . . . . . . . . . . .
22. Lease and rentals payable within one year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23. Aggregate lease and rental commitments payable for entire term of the lease:
A. Gross . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. Net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Market Value
$

5362

$

5365

$

5374

$

5378

$

5380

$

5382

$

5384

$

5386

$

5388

$

5390

OMIT PENNIES
Page 12

Form G-405 Part II