Free SEC1696.p65 - Federal

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

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Form X-17A-5

FOCUS REPORT
(Financial and Operational Combined Uniform Single Report)

PART IIA
17 19

12

(Please read instructions before preparing Form.)
This report is being filed pursuant to (Check Applicable Block(s)): 1) Rule 17a-5(a) 16 2) Rule 17a-5(b) 4) Special request by designated examining authority NAME OF BROKER-DEALER 3) Rule 17a-11 5) Other SEC FILE NO. 14 FIRM I.D. NO. 13 ADDRESS OF PRINCIPAL PLACE OF BUSINESS (Do Not Use P.O. Box No.) 20
(No. and Street)

18

26

15 FOR PERIOD BEGINNING (MM/DD/YY)

24
AND ENDING (MM/DD/YY)

21
(City) (State)

22
(Zip Code)

23 25
(Area Code) -- Telephone No.

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

30
NAME(S) OF SUBSIDIARIES OR AFFILIATES CONSOLIDATED IN THIS REPORT: OFFICIAL USE

31 33 35 37 39
YES

32 34 36 38
DOES RESPONDENT CARRY ITS OWN CUSTOMER ACCOUNTS? CHECK HERE IF RESPONDENT IS FILING AN AUDITED REPORT

40

NO

41 42

EXECUTION: The registrant/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 _______________________________day of _________________________ 20 _____ Manual signatures 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))
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

SEC 1696 (02-03) 1 of 16

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

71 Number and Street CHECK ONE Certified Public Accountant Public Accountant Accountant not resident in United States
or any of its possessions
75 76 77 City

72 State

73 Zip Code

74

FOR SEC USE

DO NOT WRITE UNDER THIS LINE . . . FOR SEC USE ONLY WORK LOCATION REPORT DATE MM/DD/YY DOC. SEQ. NO. CARD

50

51

52

53

SEC 1696 (02-03) 2 of 16

FINANCIAL AND OPERATIONAL COMBINED UNIFORM SINGLE REPORT
PART IIA

BROKER OR DEALER
W

1

N3
STATEMENT OF FINANCIAL CONDITION FOR NONCARRYING, NONCLEARING AND CERTAIN OTHER BROKERS OR DEALERS
as of (MM/DD/YY) SEC FILE NO. Consolidated Unconsolidated

100

99 98 198 199

Allowable
1. Cash .............................................................................. $
2. Receivables from brokers or dealers: A. Clearance account ..............................................
W 3 B. Other ..................................................................
3. Receivable from non-customers ................................
4. Securities and spot commodities owned at market value: A. Exempted securities ...........................................
B. Debt securities ...................................................
C. Options ...............................................................
D. Other securities ..................................................
E. Spot commodities ..............................................
W 4 5. Securities and/or other investments not readily marketable: A. At cost W $ 130 2 B. At estimated fair value ........................................
6. Securities borrowed under subordination agreements and partners' individual and capital securities accounts, at market value: A. Exempted
securities $
150 B. Other
securities $
160 7. Secured demand notes: ............................................ Market value of collateral: A. Exempted
securities $
170 B. Other
securities $
180 8. Memberships in exchanges: A. Owned, at
market $
190 B. Owned, at cost ...................................................
C. Contributed for use of the company, at market value ............................................................
9. Investment in and receivables from affiliates, subsidiaries and associated partnerships ....................... 10. Property, furniture, equipment, leasehold improvements and rights under lease agreements, at cost-net of accumulated depreciation and amortization ...................................................................
11. Other assets ...................................................................
W 12. TOTAL ASSETS ....................................................... $
5 200 295 300 355 418 419 420 424 430

Non-Allowable
$

Total
750

$

550 600

W

7

810 830

850

440 460

610 630

860 880

470

640

890

650
W

6

660 670

900 910

480

490 535 540

$

680 735 740

W

8

$

920 930 940 OMIT PENNIES

SEC 1696 (02-03) 3 of 16

FINANCIAL AND OPERATIONAL COMBINED UNIFORM SINGLE REPORT
PART IIA

BROKER OR DEALER STATEMENT OF FINANCIAL CONDITION FOR NONCARRYING, NONCLEARING AND
CERTAIN OTHER BROKERS OR DEALERS
LIABILITIES AND OWNERSHIP EQUITY A.I. Liabilities
$ 1045 1114 1115 1155 $

as of _____________________

Liabilities
13. Bank loans payable ................................................ 14. Payable to brokers or dealers: A. Clearance account ...........................................
B. Other ............................................................... 15. Payable to non-customers .....................................
16. Securities sold not yet purchased, at market value ....................................................... 17. Accounts payable, accrued liabilities, expenses and other ................................................ 18. Notes and mortgages payable: A. Unsecured .......................................................
B. Secured ...........................................................
19. E. Liabilities subordinated to claims of general creditors: A. Cash borrowings: ............................................ 1. from outsidersW $ 970
9 2. includes equity subordination (15c3-1(d))
of . . . $
980 B. Securities borrowings, at market value ............
from outsiders $
990 C. Pursuant to secured demand note
collateral agreements ......................................
1. from outsiders $ 1000 2. includes equity subordination (15c3-1(d))
of . . . $
1010 D. Exchange memberships contributed for
use of company, at market value ........................
E. Accounts and other borrowings not
qualified for net capital purposes ........................
20. TOTAL LIABILITIES ......................................

Non-A.I. Liabilities
1255 1315 1305 1355 1360 1205 1210 1211 1385 1390 1400
W

Total
13

$

1470 1560 1540 1610 1620 1685 1690 1700 1710

W

10


W

12

W

14

1410 1420

1720 1730

1430 $
1220 1230 $ 1440 1450 $

1740 1750 1760 1770 1780 1791 1792 1793 1794 1795 ) 1796 1800 1810 OMIT PENNIES

Ownership Equity 21. Sole Proprietorship .............................................................................................................................................................................. W $
15 W 22. Partnership (limited partners) .................................... 11 ($
1020 ) 23. Corporation: A. Preferred stock .............................................................................................................................................................................
B. Common stock .............................................................................................................................................................................
C. Additional paid-in capital ..............................................................................................................................................................
D. Retained earnings .........................................................................................................................................................................
E. Total .............................................................................................................................................................................................
F. Less capital stock in treasury ....................................................................................................................................................... W (
16 24. TOTAL OWNERSHIP EQUITY ................................................................................................................................................. $
25. TOTAL LIABILITIES AND OWNERSHIP EQUITY ...................................................................................................................... $


SEC 1696 (02-03) 5 of 16

FINANCIAL AND OPERATIONAL COMBINED UNIFORM SINGLE REPORT
PART IIA

BROKER OR DEALER COMPUTATION OF NET CAPITAL as of _____________________

1. 2. 3. 4. 5. 6.

7. 8. 9.

W

30

Total ownership equity from Statement of Financial Condition ............................................................................................................. $
Deduct ownership equity not allowable for Net Capital ........................................................................................................................ W (
19 Total ownership equity qualified for Net Capital ...................................................................................................................................
Add: A. Liabilities subordinated to claims of general creditors allowable in computation of net capital ......................................................
B. Other (deductions) or allowable credits (List) ...............................................................................................................................
Total capital and allowable subordinated liabilities ............................................................................................................................... $
Deductions and/or charges: A. Total non-allowable assets from W 17 Statement of Financial Condition (Notes B and C) ................................................................... $
3540 B. Secured demand note delinquency .........................................................................................
3590 C. Commodity futures contracts and spot commodities ­ proprietary capital charges .....................................................................................................
3600 D. Other deductions and/or charges ............................................................................................
3610 ( Other additions and/or allowable credits (List) ....................................................................................................................................
W Net capital before haircuts on securities positions ............................................................................................................................... 20 $
Haircuts on securities (computed, where applicable, pursuant to 15c3-1(f)): A. Contractual securities commitments ....................................................................................... $
3660 B. Subordinated securities borrowings ........................................................................................
3670 C. Trading and investment securities: 1. Exempted securities .........................................................................................................W
3735 18 2. Debt securities .................................................................................................................
3733 3. Options ............................................................................................................................
3730 4. Other securities ................................................................................................................
3734 D. Undue Concentration ..............................................................................................................
3650 E. Other (List) ........................................................................................................................
3736 ( $


3480 ) 3490 3500 3520 3525 3530

) 3620 3630 3640

) 3740 3750 OMIT PENNIES

10. Net Capital ..........................................................................................................................................................................................

SEC 1696 (02-03) 7 of 16

FINANCIAL AND OPERATIONAL COMBINED UNIFORM SINGLE REPORT
PART IIA

BROKER OR DEALER COMPUTATION OF NET CAPITAL REQUIREMENT Part A
11. Minimum net capital required (62/3% of line 19) ................................................................................................................................... 12. Minimum dollar net capital requirement of reporting broker or dealer and minimum net capital requirement of subsidiaries computed in accordance with Note (A) ....................................................................................................................... 13. Net capital requirement (greater of line 11 or 12) ................................................................................................................................ 14. Excess net capital (line 10 less 13) ..................................................................................................................................................... W 15. Excess net capital at 1000% (line 10 less 10% of line 19) .................................................................................................................. 22 $
$ $
$
$
3756 3758 3760 3770 3780

as of _____________________

COMPUTATION OF AGGREGATE INDEBTEDNESS
16. Total A.I. liabilities from Statement of Financial Condition .................................................................................................................... 17. Add: W A. Drafts for immediate credit ..................................................................................................... $
3800 21 B. Market value of securities borrowed for which no equivalent value is paid or credited ................................................................................................................... $
3810 C. Other unrecorded amounts (List) ............................................................................................ $
3820 18. Total aggregate indebtedness .............................................................................................................................................................. 19. Percentage of aggregate indebtedness to net capital (line 18 ÷ by line 10) ........................................................................................ 20. Percentage of debt to debt-equity total computed in accordance with Rule 15c3-1(d) ........................................................................ $
3790

$ $
%
%


3830 3840 3850 3860

COMPUTATION OF ALTERNATE NET CAPITAL REQUIREMENT Part B
21. 2% of combined aggregate debit items as shown in Formula for Reserve Requirements pursuant to Rule 15c3-3 prepared as of the date of the net capital computation including both brokers or dealers and consolidated subsidiaries' debits .......... $ 22. Minimum dollar net capital requirement of reporting broker or dealer and minimum net capital requirement of W subsidiaries computed in accordance with Note (A) ............................................................................................................................ 23 $ 23. Net capital requirement (greater of line 21 or 22) ................................................................................................................................ $
24. Excess capital (line 10 less 23) ........................................................................................................................................................... $
25. Net capital in excess of the greater of: A. 5% of combined aggregate debit items or $120,000 .................................................................................................................... $
3970 3880 3760 3910 3920

NOTES:
(A) The minimum net capital requirement should be computed by adding the minimum dollar net capital requirement of the reporting broker dealer and, for each subsidiary to be consolidated, the greater of: 1. Minimum dollar net capital requirement , or 2. 62/3% of aggregate indebtedness or 4% of aggregate debits if alternative method is used. (B) Do not deduct the value of securities borrowed under subordination agreements or secured demand note covered by subordination agreements not in satisfactory form and 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 paragraph (d) of Rule 17a-5, respondent should provide a list of material non-allowable assets.

SEC 1696 (02-03) 9 of 16

FINANCIAL AND OPERATIONAL COMBINED UNIFORM SINGLE REPORT
PART IIA

BROKER OR DEALER For the period (MMDDYY) from24 3932 to Number of months included in this statement
W

3933 3931

REVENUE

STATEMENT OF INCOME (LOSS)
3935 3938 3939 3940 3945 3949 3950 3952 3955 3970 3990 3975 3995 4030

1. Commissions: a. Commissions on transactions in exchange listed equity securities executed on an exchange ....................................................... $
b. Commissions on listed option transactions .................................................................................................................................. W 25
c. All other securities commissions ..................................................................................................................................................
d. Total securities commissions .......................................................................................................................................................
2. Gains or losses on firm securities trading accounts a. From market making in options on a national securities exchange ................................................................................................
b. From all other trading ...................................................................................................................................................................
c. Total gain (loss) ...........................................................................................................................................................................
3. Gains or losses on firm securities investment accounts ......................................................................................................................
4. Profit (loss) from underwriting and selling groups ............................................................................................................................... W 26
5. Revenue from sale of investment company shares .............................................................................................................................
6. Commodities revenue ..........................................................................................................................................................................
7. Fees for account supervision, investment advisory and administrative services ..................................................................................
8. Other revenue ......................................................................................................................................................................................
9. Total revenue ....................................................................................................................................................................................... $


EXPENSES
10. 11. 12. 13. Salaries and other employment costs for general partners and voting stockholder officers .................................................................
Other employee compensation and benefits ........................................................................................................................................
Commissions paid to other broker-dealers ..........................................................................................................................................
Interest expense ..................................................................................................................................................................................
a. Includes interest on accounts subject to subordination agreements .......................................
4070 14. Regulatory fees and expenses .............................................................................................................................................................
15. Other expenses ...................................................................................................................................................................................
16. Total expenses .................................................................................................................................................................................... $
4120 4115 4140 4075 4195 4100 4200

NET INCOME
17. Income (loss) before Federal income taxes and items below (Item 9 less Item 16) ............................................................................. $
18. Provision for Federal income taxes (for parent only) ............................................................................................................................ W 28
19. Equity in earnings (losses) of unconsolidated subsidiaries not included above ...................................................................................
a. After Federal income taxes of .................................................................................................
4338 20. Extraordinary gains (losses) ................................................................................................................................................................
a. After Federal income taxes of .................................................................................................
4239 21. Cumulative effect of changes in accounting principles ........................................................................................................................
22. Net income (loss) after Federal income taxes and extraordinary items ................................................................................................ $
4210 4220 4222 4224 4225 4230

MONTHLY INCOME
23. Income (current month only) before provision for Federal income taxes and extraordinary items ........................................................ $
4211

SEC 1696 (02-03) 11 of 16

FINANCIAL AND OPERATIONAL COMBINED UNIFORM SINGLE REPORT
PART IIA

BROKER OR DEALER For the period (MMDDYY) from _____________ to ______________ STATEMENT OF CHANGES IN OWNERSHIP EQUITY (SOLE PROPRIETORSHIP, PARTNERSHIP OR CORPORATION)
1. Balance, beginning of period ............................................................................................................................................................... $
A. Net income (loss) .........................................................................................................................................................................
W B. Additions (Includes non-conforming capital of ....................................................................... $
4262 ) 29 C. Deductions (Includes non-conforming capital of ..................................................................... $
4272 ) 2. Balance, end of period (From item 1800) ............................................................................................................................................
$ 4240 4250 4260 4270 4290

STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED TO CLAIMS OF GENERAL CREDITORS
3. Balance, beginning of period ............................................................................................................................................................... W $
30 A. Increases ......................................................................................................................................................................................
B. Decreases ....................................................................................................................................................................................
4. Balance, end of period (From item 3520) ............................................................................................................................................ $
4300 4310 4320 4330 OMIT PENNIES

SEC 1696 (02-03) 13 of 16

FINANCIAL AND OPERATIONAL COMBINED UNIFORM SINGLE REPORT
PART IIA

BROKER OR DEALER EXEMPTIVE PROVISION UNDER RULE 15c3-3
24. If an exemption from Rule 15c3-1 is claimed, identify below the section upon which such exemption is based (check one only) A. (k)(1) -- $2,500 capital category as per Rule 15c3-1 .................................................................................................................
B. (k)(2)(A) -- "Special Account for the Exclusive Benefit of customers" maintained .......................................................................
C. (k)(2)(B) -- All customer transactions cleared through another broker-dealer on a fully disclosed basis. Name of clearing firmW 4335 30 D. (k)(3) -- Exempted by order of the Commission (include copy of letter) ......................................................................................
4550 4560 4570 4580

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 Net Capital.
Type of Proposed Withdrawal or Accrual (See below for code )
W

Name of Lender or Contributor 4600 4610 4620 4630 4640 4601 4611 4621 4631 4641

Insider or Outsider? (In or Out) 4602 4612 4622 4632 4642 Total $
W

Amount to be Withdrawn (cash amount and/or Net Capital Value of Securities) 4603 4613 4623 4633 4643
36

(MMDDYY) Withdrawal or Maturity Date 4604 4614 4624 4634 4644

Expect to Renew (Yes or No) 4605 4615 4625 4635 4645

31

W

32

W

33

W

34

W

35

4699 OMIT PENNIES

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 anticipated accruals which would cause a reduction of Net Capital. These anticipated accruals would include amounts of bonuses, partners' drawing accounts, taxes, and interest on capital, voluntary contributions to pension or profit sharing plans, etc., which have not been deducted in the computation of Net Capital, but which you anticipate will be paid within the next six months.

WITHDRAWAL CODE:
1. 2. 3.

DESCRIPTIONS
Equity Capital Subordinated Liabilities Accruals

SEC 1696 (02-03) 15 of 16