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U.S. SECURITIES AND EXCHANGE COMMISSION  WASHINGTON,
DC 20549


FORM 10-Q

|           |                                                                                   
|---------- | ----------------------------------------------------------------------------------
|(Mark One)
|           |                                                                                   
|x          | Quarterly
 report under Section 13 or 15(d) of the Securities Exchange Act of 1934
|           |                                                                                   
|           | For the quarterly period
 ended September 30, 2007                                
|           |                                                                                   
|o          | Transition
 report under Section 13 or 15(d) of the Exchange Act                  
|           |                                                                                   
|           | For the transition period
 from _____________________ to _____________________    
|           |                                                                                   
|           | Commission file number
0-5703                                                     

Siebert
Financial Corp.

|                                                                                    |  |                                      
|----------------------------------------------------------------------------------- |  | -------------------------------------
|(Exact
 Name of Issuer as Specified in its Charter)                                
|                                                                                    |  |                                      
|New York                                                                            |  | 11-1796714                           
|                                                                                    |  |                                      
|(State
 or Other Jurisdiction of Incorporation)                                     |  | (I.R.S.
 Employer Identification No.)
|                                                                                   
|885 Third Avenue, New York, NY 10022                                               
|                                                                                   
|(Address
 of Principal Executive Offices)                                          
|                                                                                   
|(212) 644-2400                                                                     
|                                                                                   
|(Issuers
 Telephone Number, Including Area Code)                                  
|                                                                                   
|                                                                                   
|(Former
 Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Indicate
by check mark whether the registrant: (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the
past 90 days.

Yes x      No o

Indicate
by check mark whether the registrant is a large accelerated, an accelerated
filer or a non-accelerated filer. See definition of accelerated filer and
large accelerated filer in Rule 12b-2 of the Exchange Act.

|                                       |                     |                        
|-------------------------------------- | ------------------- | -----------------------
|(Check one) Large
 Accelerated Filer o | Accelerated Filer o | Non-Accelerated Filer x

Indicate by check mark
whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).

Yes o      No x

State
the number of shares outstanding of each of the issuers classes of common
equity, as of the latest practicable date: As of November 1, 2007, there were
22,206,546 shares of Common Stock, par value $.01 per share, outstanding.

1

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Unless
the context otherwise requires, the Company shall mean Siebert Financial
Corp. and its wholly owned subsidiaries and Siebert shall mean Muriel Siebert
& Co., Inc., a wholly owned subsidiary of the Company.

Certain
statements contained in the Managements Discussion and Analysis of Financial
Condition and Results of Operations below and elsewhere in this document, as
well as oral statements that may be made by us or by our officers, directors or
employees acting on our behalf, that are not statements of historical or
current fact constitute forward looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward looking
statements involve risks and uncertainties and known and unknown factors that
could cause our actual results to be materially different from our historical
results or from any future results expressed or implied by such forward looking
statements, including, without limitation: changes in general economic and
market conditions; fluctuations in volume and prices of securities; demand for
brokerage and investment banking services; competition within and without the
discount brokerage business, including the offer of broader services;
competition from electronic discount brokerage firms offering lower rates on
commissions than we do prevalence of a flat fee environment; decline in
participation in equity or municipal finance underwritings; limited trading
opportunities; the method of placing trades by our customers; computer and
telephone system failures; our level of spending on advertising and promotions;
trading errors and the possibility of losses from customer non-payment of
amounts due; other increases in expenses and changes in net capital or other
regulatory requirements. We undertake no obligation to publicly release the results
of any revisions to these forward-looking statements which may be made to
reflect events or circumstances after the date when such statements were made
or to reflect the occurrence of unanticipated events. An investment in us
involves various risks, including those mentioned above and those which are
detailed from time to time in our Securities and Exchange Commission filings.

2

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Part I - FINANCIAL INFORMATION

Item 1. Financial Statements

Siebert Financial Corp. & Subsidiaries 
Consolidated Statements of Financial Condition

|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------------------------- | ---------- | ------------------ | - | ---------- | -
|                                                                                                                                                                                                                                     |  | September 30, 2007
 (Unaudited) |            | December 31,
 2006 |  
|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  
|ASSETS                                                                                                                                                                                                                               |  |                                 |            |                    |   |            |  
|Cash and cash equivalents                                                                                                                                                                                                            |  | $                               | 33,993,000 |                    | $ | 32,606,000 |  
|Cash equivalents  restricted                                                                                                                                                                                                        |  |                                 | 1,300,000  |                    |   | 1,300,000  |  
|Receivable from clearing brokers                                                                                                                                                                                                     |  |                                 | 2,078,000  |                    |   | 2,468,000  |  
|Securities owned, at market value                                                                                                                                                                                                    |  |                                 | 248,000    |                    |   |            |  
|Furniture, equipment and leasehold
 improvements, net                                                                                                                                                                                |  |                                 | 869,000    |                    |   | 510,000    |  
|Investments in and advances to equity
 investees                                                                                                                                                                                     |  |                                 | 5,380,000  |                    |   | 6,765,000  |  
|Prepaid expenses and other assets                                                                                                                                                                                                    |  |                                 | 2,154,000  |                    |   | 1,211,000  |  
|Intangibles, net                                                                                                                                                                                                                     |  |                                 | 949,000    |                    |   | 1,182,000  |  
|Deferred taxes                                                                                                                                                                                                                       |  |                                 | 805,000    |                    |   | 827,000    |  
|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  
|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  
|                                                                                                                                                                                                                                     |  | $                               | 47,776,000 |                    | $ | 46,869,000 |  
|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  
|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                                                                                                 |  |                                 |            |                    |   |            |  
|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  
|Liabilities:                                                                                                                                                                                                                         |  |                                 |            |                    |   |            |  
|Accounts payable and accrued liabilities                                                                                                                                                                                             |  |                                 | 6,740,000  |                    |   | 6,460,000  |  
|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  
|Contingencies                                                                                                                                                                                                                        |  |                                 |            |                    |   |            |  
|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  
|Stockholders equity:                                                                                                                                                                                                                |  |                                 |            |                    |   |            |  
|Common stock, $.01 par value; 49,000,000
 shares authorized, 23,206,046 shares issued and 22,206,546 shares outstanding
 at September 30, 2007 and 23,202,046 shares issued and 22,202, 546 shares
 outstanding at December 31, 2006 |  |                                 | 232,000    |                    |   | 232,000    |  
|Additional paid-in capital                                                                                                                                                                                                           |  |                                 | 18,800,000 |                    |   | 18,719,000 |  
|Retained earnings                                                                                                                                                                                                                    |  |                                 | 26,508,000 |                    |   | 25,962,000 |  
|Less: 999,500 shares of treasury stock, at
 cost at September 30, 2007 and December 31, 2006                                                                                                                                         |  |                                 | (4,504,000 | )                  |   | (4,504,000 | )
|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  
|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  
|                                                                                                                                                                                                                                     |  |                                 | 41,036,000 |                    |   | 40,409,000 |  
|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  
|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  
|                                                                                                                                                                                                                                     |  | $                               | 47,776,000 |                    | $ | 46,869,000 |  
|                                                                                                                                                                                                                                     |  |                                 |            |                    |   |            |  

See notes to consolidated financial
statements.

3

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Siebert Financial Corp. & Subsidiaries
Consolidated Statements of Operations
(Unaudited)

|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|---------------------------------------------- |  | --------------------------------- | ---------- | -------------------------------- | - | ---------- |  | ---- | ---------- |  | - | ---------- | 
|                                               |  | Three Months Ended
 September 30, |            | Nine Months Ended
 September 30, |  
|                                               |  |                                   |            |                                  |  
|                                               |  | 2007                              |            | 2006                             |   | 2007       |  | 2006 |           
|                                               |  |                                   |            |                                  |   |            |  |      |           
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|Revenues:                                      |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|Commissions and fees                           |  | $                                 | 6,096,000  |                                  | $ | 5,326,000  |  | $    | 19,264,000 |  | $ | 18,226,000 | 
|Investment banking                             |  |                                   | 713,000    |                                  |   | 231,000    |  |      | 2,665,000  |  |   | 791,000    | 
|Trading profits                                |  |                                   | 190,000    |                                  |   | 259,000    |  |      | 395,000    |  |   | 612,000    | 
|Interest and dividends                         |  |                                   | 451,000    |                                  |   | 444,000    |  |      | 1,337,000  |  |   | 1,233,000  | 
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|                                               |  |                                   | 7,450,000  |                                  |   | 6,260,000  |  |      | 23,661,000 |  |   | 20,862,000 | 
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|Expenses:                                      |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|Employee compensation and
benefits             |  |                                   | 2,582,000  |                                  |   | 2,577,000  |  |      | 8,537,000  |  |   | 7,825,000  | 
|Clearing fees, including floor
brokerage       |  |                                   | 1,241,000  |                                  |   | 1,128,000  |  |      | 4,208,000  |  |   | 3,958,000  | 
|Professional fees                              |  |                                   | 2,240,000  |                                  |   | 799,000    |  |      | 4,548,000  |  |   | 2,570,000  | 
|Advertising and
promotion                      |  |                                   | 120,000    |                                  |   | 206,000    |  |      | 638,000    |  |   | 880,000    | 
|Communications                                 |  |                                   | 753,000    |                                  |   | 466,000    |  |      | 1,538,000  |  |   | 1,329,000  | 
|Occupancy                                      |  |                                   | 317,000    |                                  |   | 296,000    |  |      | 959,000    |  |   | 862,000    | 
|Other general and
administrative               |  |                                   | 690,000    |                                  |   | 713,000    |  |      | 2,149,000  |  |   | 2,183,000  | 
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|                                               |  |                                   | 7,943,000  |                                  |   | 6,185,000  |  |      | 22,577,000 |  |   | 19,607,000 | 
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|(Loss) income from equity investees            |  |                                   | (395,000   | )                                |   | 1,472,000  |  |      | 961,000    |  |   | 3,556,000  | 
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|(Loss) income before income taxes              |  |                                   | (888,000   | )                                |   | 1,547,000  |  |      | 2,045,000  |  |   | 4,811,000  | 
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|(Benefit) provision for income taxes           |  |                                   | (293,000   | )                                |   | 650,000    |  |      | 939,000    |  |   | 2,021,000  | 
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|Net (loss) income                              |  | $                                 | (595,000   | )                                | $ | 897,000    |  | $    | 1,106,000  |  | $ | 2,790,000  | 
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|                                               |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|Net (loss) income per share of common stock
 - |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|Basic and Diluted                              |  | $                                 | (.03       | )                                | $ | .04        |  | $    | .05        |  | $ | .13        | 
|Weighted average shares outstanding -          |  |                                   |            |                                  |   |            |  |      |            |  |   |            | 
|Basic                                          |  |                                   | 22,206,546 |                                  |   | 22,116,680 |  |      | 22,205,491 |  |   | 22,120,669 | 
|Diluted                                        |  |                                   | 22,206,546 |                                  |   | 22,133,267 |  |      | 22,281,407 |  |   | 22,139,055 | 

See notes to consolidated financial
statements.

4

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Siebert Financial Corp. & Subsidiaries 
Consolidated Statements of Cash Flows 
(Unaudited)

|                                                                                   |  |                                  |            |      |   |            |  
|---------------------------------------------------------------------------------- |  | -------------------------------- | ---------- | ---- | - | ---------- | -
|                                                                                   |  | Nine
 Months EndedSeptember
 30, |           
|                                                                                   |  |                                  |           
|                                                                                   |  | 2007                             |            | 2006 |  
|                                                                                   |  |                                  |            |      |  
|Cash flows from operating
activities:                                              |  |                                  |            |      |   |            |  
|Net income                                                                         |  | $                                | 1,106,000  |      | $ | 2,790,000  |  
|Adjustments to reconcile net
income to net
 cash provided by operating activities: |  |                                  |            |      |   |            |  
|Depreciation and
amortization                                                      |  |                                  | 498,000    |      |   | 582,000    |  
|Income from equity
investees                                                       |  |                                  | (961,000   | )    |   | (3,556,000 | )
|Deferred taxes                                                                     |  |                                  | 22,000     |      |   | 88,000     |  
|Distribution from equity
investees                                                 |  |                                  | 2,419,000  |      |   | 1,418,000  |  
|Employee stock based
compensation                                                  |  |                                  | 70,000     |      |   | 118,000    |  
|Changes in:                                                                        |  |                                  |            |      |   |            |  
|Receivable from clearing
brokers                                                   |  |                                  | 390,000    |      |   | 1,103,000  |  
|Prepaid expenses and other
assets                                                  |  |                                  | (943,000   | )    |   | 50,000     |  
|Securities owned, at market
value                                                  |  |                                  | (248,000   | )    |   |            |  
|Accounts payable and accrued
liabilities                                           |  |                                  | 280,000    |      |   | (820,000   | )
|                                                                                   |  |                                  |            |      |   |            |  
|Net cash provided by operating
activities                                          |  |                                  | 2,633,000  |      |   | 1,773,000  |  
|                                                                                   |  |                                  |            |      |   |            |  
|                                                                                   |  |                                  |            |      |   |            |  
|Cash flows from investing
activities:                                              |  |                                  |            |      |   |            |  
|                                                                                   |  |                                  |            |      |   |            |  
|Purchase of furniture, equipment
and
 leasehold improvements                       |  |                                  | (624,000   | )    |   | (110,000   | )
|Payment of net advances made to
equity
 investees                                  |  |                                  | (73,000    | )    |   | (114,000   | )
|                                                                                   |  |                                  |            |      |   |            |  
|Net cash used in investing
activities                                              |  |                                  | (697,000   | )    |   | (224,000   | )
|                                                                                   |  |                                  |            |      |   |            |  
|                                                                                   |  |                                  |            |      |   |            |  
|Cash flows from financing
activities:                                              |  |                                  |            |      |   |            |  
|Dividend on common
stock                                                           |  |                                  | (560,000   | )    |   | (359,000   | )
|Proceeds from exercise of
options                                                  |  |                                  | 11,000     |      |   |            |  
|Repurchase of common
stock                                                         |  |                                  |            |      |   | (46,000    | )
|                                                                                   |  |                                  |            |      |   |            |  
|Net cash used in financing
activities                                              |  |                                  | (549,000   | )    |   | (405,000   | )
|                                                                                   |  |                                  |            |      |   |            |  
|                                                                                   |  |                                  |            |      |   |            |  
|Net increase in cash and cash
equivalents                                          |  |                                  | 1,387,000  |      |   | 1,144,000  |  
|                                                                                   |  |                                  |            |      |   |            |  
|Cash and cash equivalents - beginning of
 period                                   |  |                                  | 32,606,000 |      |   | 30,980,000 |  
|                                                                                   |  |                                  |            |      |   |            |  
|                                                                                   |  |                                  |            |      |   |            |  
|Cash and cash equivalents - end of
period                                          |  | $                                | 33,993,000 |      | $ | 32,124,000 |  
|                                                                                   |  |                                  |            |      |   |            |  
|                                                                                   |  |                                  |            |      |   |            |  
|Supplemental cash flow
disclosures:                                                |  |                                  |            |      |   |            |  
|Cash paid for:                                                                     |  |                                  |            |      |   |            |  
|Income taxes                                                                       |  | $                                | 2,058,000  |      | $ | 2,312,000  |  

See notes to
consolidated financial statements.

5

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Siebert Financial Corp. & Subsidiaries
Notes to Consolidated Financial Statements 
Nine Months Ended September 30, 2007 and 2006 
(Unaudited)

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1. | Organization and Basis of Presentation:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The
 consolidated financial statements include the accounts of Siebert Financial
 Corp. (the Company) and its wholly owned subsidiaries Muriel Siebert &
 Co., Inc. (Siebert) and Siebert Womens Financial Network, Inc. (WFN).
 All material intercompany balances and transactions have been eliminated.
 Investment in two entities in which the Company has ownership interest of 49%
 and 33.33% are accounted for by the equity method. The statements are
 unaudited; however, in the opinion of management, all adjustments considered
 necessary to reflect fairly the Companys financial position and results of
 operations, consisting of normal recurring adjustments, have been included.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The
 accompanying consolidated financial statements do not include all of the
 information and footnote disclosures normally included in financial statements
 prepared in accordance with generally accepted accounting principles in the
 United States of America. Accordingly, the statements should be read in
 conjunction with the audited financial statements included in the Companys
 Annual Report on Form 10-K for the year ended December 31, 2006. Because of
 the nature of the Companys business, the results of any interim period are
 not necessarily indicative of results for a full year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|2. | Earnings (Loss) Per Share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Basic earnings (loss) per share is calculated by
dividing net income (loss) by the weighted average outstanding shares
during the period. Diluted earnings (loss) per share is calculated by
dividing net income (loss) by the number of shares outstanding under
the basic calculation and adding all dilutive securities, which
consist of options. The treasury stock method is used to reflect the
dilutive effect of outstanding options, which, for the three months
ended September 30, 2006 amounted to 16,587 additional shares, added
to the basic weighted average outstanding shares of 22,116,680, and
for the nine months ended September 30, 2007 and 2006 amounted to
75,916 and 18,386 additional shares, respectively, added to the basic
weighted average outstanding shares of 22,205,491 and 22,120,669
respectively. The Company recognized a net loss for the three months
ended September 30, 2007. Accordingly, basic and diluted earnings per
common share are the same as the effect of dilutive securities would
be anti-dilutive to loss per share. Potentially diluted securities consisting of outstanding options not included in the
computation of diluted income per share as the effect would have been anti-dilutive for the three months ended September 30, 2007
and 2006 amounted to 1,473,000 and 1,629,800, respectively and for the nine months ended September 30, 2007 and 2006 amounted
to 1,162,500 and 1,629,800, respectively.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|3. | Stock-Based Compensation:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | In December
 2004, the Financial Accounting Standards Board (FASB) issued SFAS No. 123R
 Share-Based Payment (SFAS 123R), which requires all share-based payments
 to employees, including grants of employee stock options, to be recognized in
 the statement of operations as an operating expense, based on their fair
 values on grant date. Prior to the adoption of SFAS 123R the Company
 accounted for stock based compensation using the intrinsic value method. The
 Company adopted the provisions of SFAS No. 123R effective January 1, 2006,
 using the modified prospective transition method. Under the modified
 prospective method, non-cash compensation expense is recognized for the
 portion of outstanding stock option awards granted prior to the adoption of
 SFAS 123R for which service has not been rendered, and for any future stock
 option grants. Accordingly, periods prior to adoption have not been restated.
 The Company recognizes share-based compensation costs on a straight-line
 basis over the requisite service periods of awards,  which would normally be the
 vesting period.                                                                                                                                                                                                                                                                                                                                          
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | The
 following tables summarize information related to options outstanding at
 September 30, 2007 and 2006 and for the nine months periods then ended:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

|                                                    |  |     |           |   |                                    |      |        |  |                                    |   |   |      | 
|--------------------------------------------------- |  | --- | --------- | - | ---------------------------------- | ---- | ------ |  | ---------------------------------- | - | - | ---- | 
|                                                    |  |     | 2007      |   | 2006                               |     
|                                                    |  |     |           |   |                                    |     
|                                                    |  |     | Shares    |   | Weighted
 Average
 Exercise
 Price |      | Shares |  | Weighted
 Average
 Exercise
 Price |  
|                                                    |  |     |           |   |                                    |      |        |  |                                    |  
|                                                    |  |     |           |   |                                    |      |        |  |                                    |   |   |      | 
|Outstanding - beginning of the period               |  |     | 1,603,966 |   | $                                  | 4.28 |        |  | 1,767,610                          |   | $ | 4.16 | 
|Granted                                             |  |     |          |   |                                    |     |        |  | 25,000                             |   | $ | 2.75 | 
|Forfeited                                           |  |     | (126,966  | ) | $                                  | 4.36 |        |  | (27,000                            | ) | $ | 4.03 | 
|Exercised                                           |  | (c) | (4,000    | ) | $                                  | 2.72 |        |  |                                   |   |   |     | 
|                                                    |  |     |           |   |                                    |      |        |  |                                    |   |   |      | 
|                                                    |  |     |           |   |                                    |      |        |  |                                    |   |   |      | 
|Outstanding - end of period                         |  | (a) | 1,473,000 |   | $                                  | 4.28 |        |  | 1,765,610                          |   | $ | 4.14 | 
|                                                    |  |     |           |   |                                    |      |        |  |                                    |   |   |      | 
|                                                    |  |     |           |   |                                    |      |        |  |                                    |   |   |      | 
|Fully vested and expected to vest at end of
 period |  | (b) | 1,410,500 |   | $                                  | 4.31 |        |  | 1,765,610                          |   | $ | 4.14 | 
|                                                    |  |     |           |   |                                    |      |        |  |                                    |   |   |      | 
|                                                    |  |     |           |   |                                    |      |        |  |                                    |   |   |      | 
|Exercisable at end of period                        |  | (b) | 1,410,500 |   | $                                  | 4.31 |        |  | 1,663,610                          |   | $ | 4.19 | 
|                                                    |  |     |           |   |                                    |      |        |  |                                    |   |   |      | 

6

---



(a) Weighted
average remaining contractual terms of 4.2 years and aggregate intrinsic value
of $264,000.

(b) Weighted
average remaining contractual terms of 4.1 years and aggregate intrinsic value
of $230,000.

(c) Aggregate
intrinsic value at date of exercise was $4,000.

As of
September 30, 2007, there were $95,000 of unrecognized compensation costs
related to unvested options which are expected to be recognized over a
weighted-average period of 4 years.

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4. | Net Capital:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Siebert is
 subject to the Securities and Exchange Commissions Uniform Net Capital Rule
 (Rule 15c3-1), which requires the maintenance of minimum net capital. Siebert
 has elected to use the alternative method, permitted by the rule, which
 requires that Siebert maintain minimum net capital, as defined, equal to the
 greater of $250,000 or two percent of aggregate debit balances arising from
 customer transactions, as defined. (The net capital rule of the New York
 Stock Exchange also provides that equity capital may not be withdrawn or cash
 dividends paid if resulting net capital would be less than five percent of
 aggregate debits.) As of September 30, 2007, Siebert had net capital of
 approximately $28,638,000 as compared with net capital requirements of
 $250,000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|5. | Intuit Lawsuit:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Siebert filed a lawsuit
 against Intuit Inc. (Intuit) in New York State Supreme Court on September
 17, 2003. The complaint sought approximately $11 million for alleged joint
 expenses and compensatory damages and $33.3 million in punitive damages for
 claims relating to the Joint Brokerage Service conducted during the years
 ended December 31, 2003 and 2002 under the Strategic Alliance Agreement
 between Siebert and Intuit.  Intuit counterclaimed against Siebert,
 seeking approximately $8 million for alleged joint expenses and compensatory
 damages.  On September 6, 2005, the Court dismissed certain of Sieberts
 causes of action and its request for punitive damages.  On October 26,
 2007, the parties entered into a Stipulation and Order of Dismissal With
 Prejudice, dismissing all claims and counterclaims, and withdrawing all
 related motions pending before the Court, without any payments by or to
 either party; the parties also exchanged general releases. The Company has liabilities of approximately $2,000,000
recorded from prior to December 31, 2003 when Siebert conducted the Joint
Brokerage service with Intuit. As a result of the settlement those liabilities will be reversed in the fourth quarter of 2007.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|6. | Siebert Brandford Shank & Co., LLC:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Summarized
 financial data (presented in thousands) of Siebert Brandford Shank & Co.,
 LLC, (SBS) as of and for the three and nine months ended September 30, 2007 and 2006
 is set forth below. Siebert holds a 49% ownership interest in SBS which serves as an underwriters for Municipal bond offerings. Income
 from SBS is considered to be integral to Sieberts operations and material to
 the results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

|                                                                                                  |  |      |            |      |   |            | 
|------------------------------------------------------------------------------------------------- |  | ---- | ---------- | ---- | - | ---------- | 
|                                                                                                  |  | 2007 |            | 2006 |  
|                                                                                                  |  |      |            |      |  
|                                                                                                  |  |      |            |      |  
|Total assets including secured demand note
 of $1,200,000 in each period due from Siebert         |  | $    | 23,908,000 |      | $ | 30,598,000 | 
|Total liabilities including subordinated
 liabilities of $1,200,000 in each period due to Siebert |  |      | 14,851,000 |      |   | 20,915,000 | 
|Total members capital                                                                            |  |      | 9,057,000  |      |   | 9,683,000  | 
|Total revenues - 9 months                                                                         |  |      | 17,895,000 |      |   | 19,635,000 | 
|Net income - 9 months                                                                             |  |      | 1,977,000  |      |   | 4,864,000  | 
|Total revenues - 3 months                                                                         |  |      | 3,807,000  |      |   | 7,864,000  | 
|Net (loss) income - 3 months                                                                      |  |      | (886,000   | )    |   | 3,774,000  | 

| |                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Siebert
 charged SBS $180,000 for general and administrative services for the nine
 month period ended September 30, 2007 and 2006, which Siebert believes
 approximates the cost of furnishing such services.                                     
| |                                                                                                                                                                                                                                                    
| | Sieberts
 share of SBSs undistributed earnings amounted to $4,046,000 and $4,353,000
 at September 30, 2007 and 2006, respectively. Such amounts may not be
 immediately available for distribution to Siebert for various reasons
 including the

7

---



|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | amount of
 SBSs available cash, the provisions of the agreement between Siebert and the
 principals and SBSs continued compliance with its regulatory and net capital
 requirements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|7. | SBS Financial Products Company, LLC:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | The Company
 entered into an Operating Agreement, effective as of April 19, 2005 (the
 Operating Agreement), with the two individual principals of SBS (the
 Principals) for the formation of SBS Financial Products Company, LLC, a
 Delaware limited liability company (SBSFPC). Pursuant to the terms of the
 Operating Agreement, the Company and each of the Principals made an initial
 capital contribution of $400,000 in exchange for a 33.33% initial interest in
 SBSFPC. SBSFPC engages in derivatives transactions related to the municipal
 underwriting business. The Operating Agreement provides that profit will be
 shared 66.66% by the Principals and 33.33% by the Company.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | The
 Companys share of SBSFPCs undistributed earnings amounted to $400,000 and
 $1,316,000 at September 30, 2007 and 2006, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Summarized
 financial data of SBSFPC as of and for the three and nine months September 30, 2007 and
 2006 is set forth below. Income from SBSFPC is considered to be integral to
 the Companys operations and material to the results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                  

|                             |  |      |            |      |   |            | 
|---------------------------- |  | ---- | ---------- | ---- | - | ---------- | 
|                             |  | 2007 |            | 2006 |  
|                             |  |      |            |      |  
|Total assets                 |  | $    | 37,270,000 |      | $ | 44,793,000 | 
|Total liabilities            |  |      | 34,870,000 |      |   | 39,646,000 | 
|Total members capital       |  |      | 2,400,000  |      |   | 5,147,000  | 
|Total revenues - 9 months    |  |      | 441,000    |      |   | 5,505,000  | 
|Net (loss) income - 9 months |  |      | (24,000    | )    |   | 3,521,000  | 
|Total revenues - 3 months    |  |      | 224,000    |      |   | 734,000    | 
|Net income - 3 months        |  |      | 116,000    |      |   | 616,000    | 

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|8.  | Commitments and Contingent Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Siebert
 terminated the fully disclosed clearing agreement (the Clearing Agreement)
 with Pershing LLC (formerly the Pershing division of Donaldson, Lufkin &
 Jenrette Securities Corporation) (Pershing) in 2003. Based on consultation
 with counsel, Siebert believes that the $1,500,000 that it advanced to Pershing
 in January 2003 should have been returned and that Pershing may be liable for
 damages. Pershing expressed its belief that it was entitled to retain the
 advance and receive a minimum of $3 million for its unreimbursed costs, a
 termination fee of $500,000 and $5 million for lost revenues. Siebert
 received a release for the $3 million related to disputed claims for
 unreimbursed fees and costs. In 2004, Siebert decided not to commence
 proceedings against Pershing and charged off the $1,500,000 advance to
 Pershing. Siebert believes the Pershing claims are without merit and that the
 ultimate outcome of this matter will not have a material adverse effect on
 the Companys results of operations or financial position.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | The Company
 is involved in various routine lawsuits of a nature deemed by the Company
 customary and incidental to its business. In the opinion of management, the
 ultimate disposition of such actions will not have a material adverse effect
 on its financial position or results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|9.  | Dividend:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | On June 4,
 2007, the Board of Directors declared a dividend of twelve cents per share on
 common stock of the Company, which was paid on June 29, 2007 to shareholders
 of record at the close of business on June 20, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | The Chief
 Executive Officer of the Company waived the right to receive the dividend in
 excess of the aggregate amount paid to other shareholders.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|10. | New Accounting Pronouncements:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | In June
 2006, the Financial Accounting Standards Board (FASB) issued FASB
 Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an
 interpretation of FASB Statement No. 109 (FIN 48). FIN 48 clarifies the
 accounting for uncertainties in income taxes recognized in a companys
 financial statements in accordance with Statement 109 and prescribes a
 recognition threshold and measurement attributes for tax positions taken or
 expected to be taken on a tax return. Additionally, FIN 48 provides guidance
 on derecognition, classification, interest and penalties, accounting in
 interim periods, disclosure and transition. We adopted the provisions of FIN
 48 as of January 1, 2007. The adoption of FIN 48 did not impact our financial
 position, results of operations or cash flows for the nine months ended
 September 30, 2007. The Company is not subject to any tax examination for any
 federal or major state tax jurisdiction for the years prior to 2003.                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | In September
 2006, the Financial Accounting Standards Board issued SFAS No. 157 (SFAS
 157), Fair Value Measurements. SFAS 157 defines fair value and establishes
 a framework for measuring fair value. It also expands the disclosures about
 the use of fair value to measure assets and liabilities. SFAS 157 is
 effective beginning the first fiscal year that begins after November 15,
 2007. Management is currently evaluating the impact, if any, of the adoption
 of SFAS 157 on the Companys financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|11. | Presentation:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|    | Certain
 amounts in the 2006 financial statements have been reclassified for
 comparative purposes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

8

---



Item 2. Managements Discussion and Analysis
of Financial Condition and Results of Operations

This
discussion should be read in conjunction with our audited consolidated
financial statements as of and for the year ended December 31, 2006, and the
unaudited consolidated financial statements and the notes thereto contained
elsewhere in this Quarterly Report.

Business Environment

The
uncertainty over the state of the economy due to the high price
of oil and the increase of defaults relating to subprime mortgages
weighed on the markets in the third quarter of 2007 and continues to
affect interest in buying stocks.  Competition in the brokerage
industry remains intense although many of Sieberts competitors
have been consolidated or have gone out of business.

Like
other securities firms, we are directly affected by general economic and market
conditions including fluctuations in volume and prices of securities, changes
and prospects for changes in interest rates and demand for brokerage and
investment banking services, all of which can affect our relative
profitability. In periods of reduced market activity, profitability is likely
to be adversely affected because certain expenses, including salaries and
related costs, portions of communications costs and occupancy expenses remain
relatively fixed. Earnings, or loss, for any period should not be considered
representative of any other period.

Critical Accounting Policies

We
generally follow accounting policies standard in the brokerage industry and
believe that our policies appropriately reflect our financial position and
results of operations. Our management makes significant estimates that effect
the reported amounts of assets, liabilities, revenues and expenses and the
related disclosure of contigent assets and liabilities included in the
financial statements. The estimates relate primarily to revenue and expense
items in the normal course of business as to which we receive no confirmations,
invoices, or other documentation at the time the books are closed for a period.
We use our best judgment, based on our knowledge of these revenue transactions
and expenses incurred, to estimate the amounts of such revenue and expense. We
are not aware of any material differences between the estimates used in closing
our books for the last five years and the actual amounts of revenue and
expenses incurred when we subsequently receive the actual confirmations,
invoices or other documentation. Estimates are also used in determining the
useful lives of intangible assets, and the fair market value of intangible
assets and securities. Our management believes that its estimates are
reasonable.

Results of Operations

We
believe that our business reflects the current difficult business environment
for discount and online and institutional brokers. We had net loss of $595,000
for the three months ended September 30, 2007 and net income of $1,106,000 for
the nine months ended September 30, 2007, respectively.

Three Months Ended
September 30, 2007 Compared to Three Months Ended September 30, 2006

Total
revenues for the three months ended September 30, 2007 were $7.5 million, an
increase of $1.2 million or 19.0% from the same period in 2006.

Commission
and fee income for the three months ended September 30, 2007 was $6.1 million,
an increase of $770,000 or 14.5% from the same period in 2006 due to an
increase in institutional trading, the commission recapture operation and
commissions generated by retail customers trading volumes as well as an
increase in the average commission charged per trade.

Investment
banking revenues for the three months ended September 30, 2007 were $713,000,
an increase of $482,000 or 208.7% due to our participation in more new issues
in the equity and debt capital markets.

Trading
profits were $190,000 for the three months ended September 30, 2007, a decrease
of $69,000 or 26.6% over the same period in 2006 due to an overall decrease in
trading volume.

Interest
and dividends for the three months ended September 30, 2007 were $451,000, an
increase of $7,000 or 1.6% from the same period in 2006 primarily due to higher
cash balances.

Total
expenses for the three months ended September 30, 2007 were $7.9 million, an
increase of $1.8 million or 28.4% from the same period in 2006.

Employee
compensation and benefit costs for the three months ended September 30, 2007
were $2.6 million, an increase of $5,000 or .2% from the same period in 2006.
This increase was due to an increase in commissions paid based on production
offset by a decrease in bonus accrual, heath insurance and employment of
temporary employees.

Clearing
and floor brokerage costs for the three months ended September 30, 2007 were
$1.2 million, an increase of $113,000 or 10.0% from the same period in 2006
primarily due to an increase in listed floor executions for institutional
customers

9

---



executed at
the New York Stock Exchange, increased volume relating to the commission
recapture operations and increased volume of trade executions for retail
customers.

Professional
fees for the three months ended September 30, 2007, was $2.2 million, an
increase of $1.4 million or 180.4% from the same period in 2006 due to an
increase in consulting fees relating to the commission recapture business and
Sarbanes-Oxley and legal fees relating to the Intuit case and other compliance
issues.

Advertising
and promotion expenses for the three months ended September 30, 2007 were
$120,000, a decrease of $86,000 or 41.7% from the same period in 2006 primarily
due to the reduction in print advertising in the third quarter of 2007.

Communications
expense for the three months ended September 30, 2007, was $753,000, an
increase of $287,000 or 61.6% from the same period in 2006 primarily due to an
increase in costs associated with our new website.

Occupancy
costs for the three months ended September 30, 2007 were $317,000, an increase
of $21,000 or 7.1% from the same period in 2006 due to an increase in rent in
the Florida branches and California and New Jersey offices.

Other
general and administrative expenses for the three months ended September 30,
2007 were $690,000, a decrease of $23,000 or 3.2% from the same period in 2006
due to the decrease in depreciation and amortization expenses, postage,
subscriptions, travel and entertainment, registration and exchange fees offset
by increases in printing, insurance and transportation costs.

Loss
from Sieberts equity investment in Siebert Brandford Shank & Co., LLC, an
entity in which Siebert holds a 49% equity interest (SBS), for the three
months ended September 30, 2007, was $434,000 compared to income of $1.3
million from the same period in 2006 primarily due to SBS participating in less
municipal bond offerings. SBS serves as an underwriter for municipal bond
offerings. Income from our equity investment in SBS Financial Products Company,
LLC, an entity in which we hold a 33.33% equity interest (SBSFPC) for the three
months ended September 30, 2007, was $39,000 compared to income from our equity
investment in SBSFPC of $205,000, a decrease of $166,000 from the same period
in 2006. This decrease was due to a decrease in the number and size of the
transactions SBSFPC entered into in the third quarter of 2007. Loss and income
from equity investees is considered to be integral to our operations and
material to the results of operations.

The
tax benefit for the three months ended September 30, 2007 was $293,000 and a
tax provision for the three months ended September 30, 2006 was $650,000,
respectively, due to our loss before benefit of $888,000 for the three months
ended September 30, 2007 and income before income taxes of $1,547,000,
respectively. Such provisions represented effective tax rates of 32% and 42%,
respectively. The effective rate changed due to an increase of the expected effective rate from 42% to 46% in the three months ended September
30, 2007 due to permanent differences.

Nine Months Ended
September 30, 2007 Compared to Nine Months Ended September 30, 2006

Total
revenues for the nine months ended September 30, 2007 were $23.7 million, an
increase of $2.8 million or 13.4% from the same period in 2006.

Commission
and fee income for the nine months ended September 30, 2007 was $19.3 million,
an increase of $1.0 million or 5.7% from the same period in 2006 due to an
increase in institutional trading and the commission recapture operation offset
by commissions generated by a decrease in retail customers trading volumes as
well as a decrease in the average commission charged per trade.

Investment
banking revenues for the nine months ended September 30, 2007 were $2.7
million, an increase of $1.9 million or 236.9% from the same period in 2006 due
to our participation in more new issues in the equity and debt capital markets.

Trading
profits were $395,000 for the nine months ended September 30, 2007, a decrease
of $217,000 or 35.5% over the same period in 2006 due to an overall decrease in
trading volume.

Interest
and dividends for the nine months ended September 30, 2007 were $1.3 million,
an increase of $104,000 or 8.4% from the same period in 2006 primarily due to
higher interest rates and higher cash balances.

Total
expenses for the nine months ended September 30, 2007 were $22.5 million, an
increase of $3.0 million or 15.2% from the same period in 2006.

Employee
compensation and benefit costs for the nine months ended September 30, 2007
were $8.5 million, an increase of $712,000 or 9.1% from the same period in
2006. This increase was due to an increase in commissions paid based on
production and bonus accrual offset by a decrease in employment of temporary
employees and health insurance.

Clearing
and floor brokerage costs for the nine months ended September 30, 2007 were
$4.2 million, an increase of $250,000 or 6.3% from the same period in 2006
primarily due to an increase in listed floor executions for institutional
customers executed at the New York Stock Exchange and an increase in volume
relating to the commission recapture operations offset by a decreased volume of
trade executions for retail customers.

10

---



Professional
fees for the nine months ended September 30, 2007, was $4.6 million, an
increase of $2.0 million or 77.0% from the same period in 2006 due to an
increase in consulting fees relating to the commission recapture business and
Sarbanes-Oxley and legal fees relating to the Intuit case and other compliance
issues.

Advertising
and promotion expenses for the nine months ended September 30, 2007 were
$638,000, a decrease of $242,000 or 27.5% from the same period in 2006
primarily due to the reduction in print advertising production in 2007 and the
airing of television commercials in the Florida region in 2006.

Communications
expense for the nine months ended September 30, 2007, was $1.5 million, an
increase of $209,000 or 15.7% from the same period in 2006 primarily due to an
increase in costs associated with our new website.

Occupancy
costs for the nine months ended September 30, 2007 were $959,000, an increase
of $97,000 or 11.3% from the same period in 2006 due to an increase in rent in
the Florida branches and New Jersey and California offices.

Other
general and administrative expenses for the nine months ended September 30,
2007 were $2.2 million, a decrease of $34,000 or 1.6% from the same period in
2006. This decrease was a result of decreases in depreciation and amortization,
placement fees, supplies, postage, registration and exchange fees offset by
increases in printing, subscriptions, dues and transportation costs.

Income
from the Sieberts equity investment in Siebert Brandford Shank & Co., LLC,
an entity in which Siebert holds a 49% equity interest (SBS) for the nine
months ended September 30, 2007, was $968,000, compared to income of $2.4
million, a decrease of $1.4 million or 60.0% from the same period in 2006. This
decrease was due to SBS participating in less municipal bond offerings. SBS
serves as an underwriter for municipal bond offerings. Loss from our equity
investment in SBS Financial Products Company, LLC an entity in which we hold a
33% equity interest (SBSFPC) for the nine months ended September 30, 2007,
was $7,000 as compared to income from our equity investment in SBSFPC of $1.2
million from the same period in 2006. This decrease was due to a decrease in
the number of transactions SBSFPC entered into in 2007. Income and loss from
equity investees is considered to be integral to our operations and material to
the results of operations.

The
tax provisions for the nine months ended September 30, 2007 and 2006 was
$939,000 and $2.0 million, respectively, based on our income before income tax
of $2.1 million and $4.8 million, respectively. Such provisions represented
effective tax rates of 46% and 42%, respectively.

Liquidity and Capital Resources

Our
assets are highly liquid, consisting generally of cash, money market funds and
commercial paper. Our total assets at September 30, 2007 were $48 million. As
of that date, $36.1 million, or 76%, of total assets were regarded by us as
highly liquid.

On
June 4, 2007, our Board of Directors declared a dividend of twelve cents per
share on common stock, which was paid on June 29, 2007 to shareholders of
record at the close of business on June 20, 2007. Our Chief Executive Officer
waived the right to receive the dividend in excess of the aggregate amount paid
to other shareholders.

Siebert
is subject to the net capital requirements of the SEC, the NYSE and other
regulatory authorities. At September 30, 2007, Sieberts regulatory net capital
was $28.6 million, $28.4 million in excess of its minimum capital requirement
of $250,000.

Siebert
has entered into a Secured Demand Note Collateral Agreement with SBS under
which it is obligated to lend to SBS up to $1.2 million pursuant to a secured
promissory note on a subordinated basis. Amounts pledged by Siebert under the
facility are reflected on our balance sheet as cash equivalents  restricted.
SBS pays Siebert interest on this amount at the rate of 8% per annum. The
facility expires on August 31, 2008, at which time SBS is obligated to repay to
Siebert any amounts borrowed by SBS thereunder.

Item 3. Quantitative and Qualitative
Disclosures About Market Risk

Working
capital is generally temporarily invested in dollar denominated money market
funds and commercial paper. These investments are not subject to material
changes in value due to interest rate movements. We also invest in certain
short-term municipal bonds, the values of which may fluctuate during the period
they are held by us.

In
the normal course of its business, Siebert enters into transactions in various
financial instruments with off-balance sheet risk. This risk includes both
market and credit risk, which may be in excess of the amounts recognized in our
financial statements. Retail customer transactions are cleared through clearing
brokers on a fully disclosed basis. If customers do not fulfill their
contractual obligations, the clearing broker may charge Siebert for any loss
incurred in connection with the purchase or sale of securities at prevailing
market prices to satisfy the customers obligations. Siebert regularly monitors
the activity in its customer accounts for compliance with its margin
requirements. Siebert is exposed to the risk of loss on unsettled customer
transactions if customers and other counter parties are unable to fulfill their
contractual obligations.

11

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Item 4T. Controls and Procedures

We
carried out an evaluation, under the supervision and with the participation of
management, including our Chief Executive Officer and Chief Financial Officer,
of the effectiveness of the design and operation of our disclosure controls and
procedures as of the end of the period covered by this report pursuant to
Exchange Act Rule 13a-15 under the Securities Exchange Act of 1934, as amended.
Based upon that evaluation, our Chief Executive Officer and Chief Financial
Officer concluded that our disclosure controls and procedures are effective to
ensure that the information we are required to disclose in reports that we file
or submit under the Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized and reported within the time periods specified in the
rules and forms of the Securities and Exchange Commission and to ensure that
information required to be disclosed is accumulated and communicated to our
management, including our Chief Executive Officer and Chief Financial Officer
to allow timely decisions regarding required disclosure.

There
were no changes in our internal controls over financial reporting that occurred
during our most recent fiscal quarter that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.

12

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Part II - OTHER INFORMATION

Item 1. Legal
Proceedings

We
are involved in various routine lawsuits of a nature deem to be customary and
incidental to our business. In the opinion of management, the ultimate
disposition of such actions will not have a material adverse effect on its
financial position or results of operations.

Item 1A. Risk
Factors

In addition to
the other information set forth in this report, you should carefully consider
the factors discussed in Part I, Item 1A. Risk Factors in our Annual Report
on Form 10-K for the year ended December 31, 2006, which could materially
affect our business, financial position and results of operations. There are no
material changes from the risk factors set forth in Part I, Item 1A, Risk
Factors, of our Annual Report on Form 10-K for the year ended December 31,
2006.

Item 2. Unregistered
Sale of Equity Securities and Use of Proceeds

On May 15,
2000, our Board of Directors authorized a buy back of up to one million shares
of our common stock. As of September 30, 2007, we had essentially completed the
repurchase. A summary of our repurchase activity for the three months ended
September 30, 2007 is as follows:

|                |  |                                    |   |                               |  |                                                                         |  |                                                                        |         |  |  |     | 
|--------------- |  | ---------------------------------- | - | ----------------------------- |  | ----------------------------------------------------------------------- |  | ---------------------------------------------------------------------- | ------- |  |  | --- | 
|Period          |  | Total Number
 Of Shares
 Purchased |   | Average Price
 Paid Per Share |  | Total Number of
 Shares Purchased
 as Part of Publicly
 Announced Plans |  | Maximum 
 Number of Shares
 That May Yet Be
 Purchased Under
 The Plan |        
|                |  |                                    |   |                               |  |                                                                         |  |                                                                        |        
|July 2007       |  |                                    | 0 |                               |  |                                                                         |  |                                                                        | 999,500 |  |  | 500 | 
|                |  |                                    |   |                               |  |                                                                         |  |                                                                        |         |  |  |     | 
|August 2007     |  |                                    | 0 |                               |  |                                                                         |  |                                                                        | 999,500 |  |  | 500 | 
|                |  |                                    |   |                               |  |                                                                         |  |                                                                        |         |  |  |     | 
|September
 2007 |  |                                    | 0 |                               |  |                                                                         |  |                                                                        | 999,500 |  |  | 500 | 
|                |  |                                    |   |                               |  |                                                                         |  |                                                                        |         |  |  |     | 
|                |  |                                    |   |                               |  |                                                                         |  |                                                                        |         |  |  |     | 
|Total           |  |                                    | 0 |                               |  |                                                                         |  |                                                                        | 999,500 |  |  | 500 | 

Item 3. Defaults
Upon Senior Securities

None

13

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Item 4. Submission
of Matters to a Vote of Security Holders

None

Item 5. Other
Information

None

Item 6. Exhibits

(a)

| |      |                                                                                                                                                               
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 31.1 | Certification
 of Muriel F. Siebert pursuant to Exchange Act Rules 13a-14 and 15d-14, as adopted
 pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.  
| |      |                                                                                                                                                               
| | 31.2 | Certification
 of Joseph M. Ramos, Jr. pursuant to Exchange Act Rule 13a-14 and 15d-14, as
 adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
| |      |                                                                                                                                                               
| | 32.1 | Certification
 of Muriel F. Siebert of Periodic Financial Report under Section 906 of the
 Sarbanes-Oxley Act of 2002.                                        
| |      |                                                                                                                                                               
| | 32.2 | Certification
 of Joseph M. Ramos, Jr. of Periodic Financial Report under Section 906 of the
 Sarbanes- Oxley Act of 2002.                                    

14

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SIGNATURES

Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.

| |                           |                                                      
| | ------------------------- | -----------------------------------------------------
| | SIEBERT
 FINANCIAL CORP. 
| |                           |                                                      
| | By:                       | /s/ Muriel
 F. Siebert                               
| |                           |                                                      
| |                           | Muriel F.
 Siebert                                   
| |                           | Chairwoman
 and President                            
| |                           | (principal
 executive officer)                       
| |                           |                                                      
| | Dated:
 November 14, 2007
| |                           |                                                      
| | By:                       | /s/ Joseph
 M. Ramos, Jr.                            
| |                           |                                                      
| |                           | Joseph M.
 Ramos, Jr.                                
| |                           | Executive
 Vice President and Chief Financial Officer
| |                           | (principal financial
 and accounting officer)        
| |                           |                                                      
| | Dated:
 November 14, 2007

15

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