SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

          [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 1999

                                       OR

          [ ] Transition Report Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

             For the transition period from __________ to __________

                          Commission File Number 0-5703

                             SIEBERT FINANCIAL CORP.

             (Exact name of registrant as specified in its charter)

New York                                                           11-1796714
(State or other jurisdiction of                                (I.R.S. Employer
incorporation or organization)                               Identification No.)

                   885 Third Avenue, New York, New York 10022

                    (Address of principal executive offices)

                                 (212) 644-2400
              (Registrant's telephone number, including area code)

                         Former address: Not Applicable
                         ------------------------------
              (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  Securities  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 [ ]

The number of shares of the registrant's common stock outstanding as of November
8, 1999 was 22,883,005.


<PAGE>


         Unless otherwise indicated,  all information in this Form 10-Q has been
adjusted  to reflect a 4-for-1  stock split  effected  April 7, 1998 (the "Stock
Split") and the  acquisition  on May 28, 1999, of Andrew Peck  Associates,  Inc.
("Peck") in a transaction accounted for as a pooling of interests.  Accordingly,
all prior information has been adjusted to include historical  statements of the
financial  position  and  results of  operations  of Peck.  Unless  the  context
otherwise  requires,  the "Company"  shall mean Siebert  Financial Corp. and its
wholly owned subsidiary.

         The Company's  quarterly and annual operating results are affected by a
wide  variety of factors  that could  materially  and  adversely  affect  actual
results,   including:   changes  in  general  economic  and  market  conditions,
fluctuations  in trading volume and prices of securities,  changes and prospects
for changes in interest  rates and demand for brokerage and  investment  banking
services,  increases in  competition  within and without the discount  brokerage
business  through  broader  services  offerings or otherwise,  competition  from
electronic  discount  brokerage firms offering greater  discounts on commissions
than the Company, prevalence of a flat fee environment, decline in participation
in equity or municipal  finance  underwritings,  decreased  ticket volume in the
discount  brokerage  division,  limited  trading  opportunities,   increases  in
expenses,  changes in net  capital or other  regulatory  requirements  and risks
related to the Year 2000.

         As a result of these and other  factors,  the  Company  may  experience
material  fluctuations  in future  operating  results on a  quarterly  or annual
basis,  which could  materially  and adversely  affect its  business,  financial
condition,  operating results, and stock price.  Furthermore,  this document and
other documents filed by the Company with the Securities and Exchange Commission
(the "SEC")  contain  certain  forward  looking  statements  with respect to the
business of the Company,  including  prospective financing  arrangements.  These
forward-looking  statements  are  subject  to certain  risks and  uncertainties,
including  those  mentioned  above,  which may cause  actual  results  to differ
significantly from these forward-looking  statements.  The Company undertakes 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 the Company  involves  various  risks,
including  those  mentioned above and those which are detailed from time to time
in the Company's SEC filings.

PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements


                                      -2-

<PAGE>



<TABLE>
<CAPTION>

                                        SIEBERT FINANCIAL CORP. & SUBSIDIARY
                                   CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


                                                                      SEPTEMBER 30,   DECEMBER 31,
                                                                          1999              1998
                                                                          ----              ----
                                                                      (UNAUDITED)
<S>                                                                      <C>                <C>
ASSETS
Cash and cash equivalents                                                $20,790,000        $6,735,000
Cash equivalents - restricted                                              1,300,000         1,300,000
Receivable from clearing broker                                            2,155,000         2,700,000
Securities owned, at market value                                          2,623,000         5,381,000
Secured demand note receivable from stockholder                                    -         2,000,000
Furniture, equipment and leasehold improvements, net                         735,000           675,000
Investment in affiliate                                                      838,000         1,572,000
Deferred financing costs                                                           -           270,000
Income taxes receivable                                                      729,000                 -
Prepaid expenses and other assets                                          1,081,000           861,000
                                                                         -----------       -----------
                                                                         $30,251,000       $21,494,000
                                                                         ===========       ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
Securities sold, not yet purchased, at market value                         $ 46,000          $567,000
Accounts payable and accrued liabilities                                   2,517,000         3,627,000
                                                                         -----------       -----------
                                                                           2,563,000         4,194,000
                                                                         -----------       -----------
Commitments and contingent liabilities

Subordinated borrowings payable to stockholder                                     -         3,000,000
                                                                         -----------       -----------


Stockholders' equity:
Common stock, $.01 par value; 49,000,000 shares authorized,
22,874,005 and 21,604,960 issued and outstanding at
September 30, 1999 and December 31,1998, respectively                        229,000           215,000
Additional paid-in                                                        17,375,000         6,714,000
capital

Retained earnings                                                         10,084,000         7,371,000
                                                                         -----------       -----------

                                                                          27,688,000        14,300,000
                                                                         -----------       -----------

                                                                         $30,251,000       $21,494,000
                                                                         ===========       ===========
</TABLE>



                                 See notes to consolidated financial statements.

                                      -3-
<PAGE>


SIEBERT FINANCIAL CORP. & SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>

                                                           THREE MONTHS ENDED                     NINE MONTHS ENDED

                                                  -------------------------------------   -----------------------------------
                                                              SEPTEMBER 30,                          SEPTEMBER 30,
                                                         1999                 1998             1999                 1998
                                                  ---------------     -----------------   --------------      ---------------

Revenues:


<S>                                                   <C>             <C>                    <C>              <C>
   Commissions and fees                               $7,139,000      $  5,866,000           $22,762,000      $ 17,403,000
   Investment banking                                    443,000            77,000             1,093,000         3,043,000
   Trading profits                                       250,000           193,000               668,000           961,000
   Income (loss) from equity investee                   (373,000)         427,000                263,000           427,000
   Interest and dividends                                323,000           269,000               802,000           683,000
                                                      ----------      ------------           -----------      ------------

                                                       7,782,000         6,832,000            25,588,000        22,517,000
                                                      ----------      ------------           -----------      ------------

Expenses:
   Employee compensation and benefits                  2,442,000         2,124,000             8,141,000         8,186,000
   Clearing fees, including floor
      brokerage                                        1,339,000           925,000             4,173,000         2,814,000
   Advertising and promotion                           1,058,000           600,000             2,469,000         1,539,000
   Communications                                        598,000           481,000             1,813,000         1,380,000
   Occupancy                                             140,000           135,000               404,000           462,000
   Interest                                               44,000            75,000               148,000           268,000
   Other general and administrative                    1,052,000           588,000             3,090,000         2,318,000
                                                      ----------      ------------           -----------      ------------
                                                       6,673,000         4,928,000            20,238,000        16,967,000
                                                      ----------      ------------           -----------      ------------

Income before income taxes                             1,109,000         1,904,000             5,350,000         5,550,000

Provision for income taxes                               466,000           829,000             2,307,000         2,306,000
                                                      ----------      ------------           -----------      ------------

Net income                                             $ 643,000      $  1,075,000           $ 3,043,000      $  3,244,000
                                                      ==========      ============           ===========      ============

Net income per share of common stock -
    basic and diluted                                       $0.03           $0.05                  $0.13            $0.15

Weighted average shares outstanding -
    basic                                               22,873,565      21,604,334             22,741,604      21,595,999

Weighted average shares outstanding -
    diluted                                             23,370,233      22,269,704             23,247,901      22,274,383
</TABLE>



                                 See notes to consolidated financial statements.


                                      -4-

<PAGE>


SIEBERT FINANCIAL CORP. & SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>

                                                                                                  NINE MONTHS ENDED
                                                                                                     SEPTEMBER 30,
                                                                                        ----------------------------------------
                                                                                            1999                      1998
                                                                                        -----------------       ----------------
<S>                                                                                        <C>                       <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                                                              $3,043,000                $3,244,000
   Adjustments to reconcile net income to net cash (used in) provided by
    Operating activities:
   Depreciation and amortization                                                              310,000                   126,000
                Noncash compensation                                                                -                    68,000
                Utilization of deferred tax asset                                           2,307,000                         -
     Income from equity investee                                                            (263,000)                         -
     Changes in operating assets and liabilities:
       Net (increase) decrease in securities owned, at market value                                                 (2,150,000)
                                                                                            2,758,000
       Net (increase) decrease in receivable from clearing broker                           (545,000)                   386,000
       (Increase) decrease in prepaid expenses and other assets                             (204,000)                   179,000

       Net increase (decrease) in securities sold, not yet purchased,
         at market value                                                                    (521,000)                 1,400,000
       Increase (decrease) in accounts payable and accrued
         Liabilities                                                                      (1,140,000)                   264,000

      Net cash provided by operating activities                                             6,835,000                 3,717,000

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of furniture, equipment and leasehold improvements                               (627,000)                 (252,000)
  Distribution from equity investee                                                           997,000                 (427,000)

      Net cash provided by (used in) investing activities                                   6,835,000                 (679,000)

CASH FLOWS FROM FINANCING ACTIVITIES:
   Dividend on common stock                                                                 (300,000)                  (80,000)
   Repayment of Subordinated debt                                                         (1,000,000)
   Proceeds from exercise of options                                                          710,000                    39,000
    Proceeds from rights offering                                                           7,183,000                          -
             Net cash provided by (used in) financing activities                            7,723,000                   (41,000)

             Net increase (decrease) in cash and cash equivalents                          14,055,000                (2,997,000)

Cash and cash equivalents - beginning of period                                             6,735,000                  4,527,000


Cash and cash equivalents - end of period                                                 $20,790,000                 $7,524,000

 SUPPLEMENTAL CASH FLOW DISCLOSURES:
   Cash paid for:
   Interest                                                                                  $148,000                  $193,000
     Income taxes                                                                            $567,000                 1,498,000

 NONCASH INVESTING AND FINANCING ACTIVITIES:
   Dividends declared                                                                        $120,000                   $19,000
  Tax benefit from stock options exercise (see note 4)                                     $3,036,000                         _
</TABLE>

                      See notes to consolidated financial statements.


                                      -5-
<PAGE>


SIEBERT FINANCIAL CORP. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)


1.   ORGANIZATION AND BASIS OF PRESENTATION:

     The  consolidated  financial  statements  include  the  accounts of Siebert
     Financial  Corp. (the  "Company") and its wholly owned  subsidiary,  Muriel
     Siebert & Co., Inc.  ("Siebert").  All material  intercompany balances have
     been eliminated.  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.  Accordingly, the statements should be read in conjunction with
     the audited financial statements included in the Company's Annual Report on
     Form 10-KSB for the year ended December 31, 1998.  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.

     On May 28, 1999,  the Company  consummated  the  acquisition of Andrew Peck
     Associates,  Inc.  ("Peck").  Under  the terms of the  agreement,  Peck was
     merged with and into Siebert and the separate existence of Peck ceased. All
     of the common stock of Peck  outstanding  was converted into 600,000 shares
     of the Company's  common stock. The merger is accounted for as a pooling of
     interests.  Accordingly,  the  Company's  financial  statements  have  been
     restated to include the results of Peck for all periods presented.


2.   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 2% 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 5% of  aggregate  debits.) As of  September  30, 1999 and December 31,
     1998,  Siebert had net capital of  approximately  $ 13.1  million and $11.1
     million  respectively,   as  compared  with  net  capital  requirements  of
     $250,000.

3.  TAX BENEFIT OF STOCK OPTION EXERCISES:

     During the three  quarters ended  September 30, 1999, the Company  recorded
     income taxes  receivable of, and increased  additional  paid-in capital by,
     $3,036,000  arising from the  deductibility  of the difference  between the
     exercise price of non qualifying  stock options and the market value of the
     stock on the  dates of  exercise  of the  options.  The  amounts  have been
     utilized to offset  currently  payable income taxes and the excess has been
     recorded as income taxes receivable.


<
                                      -6-
<PAGE>

4.   CAPITAL TRANSACTIONS:

     On January 15, 1999 the Company  issued  961,000 shares of its common stock
     in connection  with a rights  offering to its  shareholders.  Proceeds were
     $7.50 a share, or  approximately  $7,200,000.  The proceeds after deducting
     expenses of  approximately  $270,000 were credited  $19,600 to common stock
     and $7,176,000 to additional paid in capital.

     During the quarter  ended  September  30, 1999 no  employees  or  directors
     exercised  any  options.  Employees  and  directors  exercised  options  to
     purchase  78,020  shares of common stock during the quarter  ended June 30,
     1999 and 227,240 options during the quarter ended March 31, 1999.  Proceeds
     of the  exercises,  aggregating  approximately  $710,000  (180,000  for the
     quarter  ended June 30, 1999,  and 530,000 for the quarter  ended March 31,
     1999) were credited  $3,000 to common stock and $707,000 to additional paid
     in capital.

     Pursuant to its 1998 Restricted  Stock Award Plan, the Company issued 4,250
     shares of its common  stock to 87  employees  during the second  quarter of
     1999. The aggregate market value of the restricted  stock,  which vests one
     year  from the date of the  grant,  was  approximately  $122,000,  which is
     charged to expense over the vesting period.


5.          RELATED PARTY TRANSACTIONS:

     In September 1999, the Company returned  $2,000,000 of secured demand notes
     receivable   and  $1,000,000  in  cash  to  its  Chairwoman  and  principal
     shareholder in exchange for the  cancellation of $3,000,000 of subordinated
     notes payable.


                                      -7-
<PAGE>

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


         This  discussion  should  be read in  conjunction  with  the  Company's
Consolidated  Financial  Statements and the Notes thereto contained elsewhere in
this Quarterly Report.

BUSINESS ENVIRONMENT

         Market  conditions  during the first four  months of 1999  reflected  a
continuation of the 1996 bull market characterized by record volume, record high
market levels and large daily swings in the market  averages while interest rate
concerns  coupled with a slower market  environment  and normal  seasonal summer
slowdown led to lower  trading  volume in the markets  overall  during the third
quarter.  Meanwhile,  competition  continued  to  intensify  among  all types of
brokerage firms including  discount brokers,  as well as from new firms entering
the discount brokerage business.  Electronic trading continues to account for an
increasing  amount of trading  activity  with some firms  offering very low flat
rate trading  execution  fees that are difficult for any  conventional  discount
firm to meet.  Many of these  flat fee  brokers,  however,  impose  charges  for
services  such as mailing,  transfers and handling  exchanges  which the Company
does not currently  impose,  and also direct their  executions to captive market
makers.  Continued  competition from ultra low cost flat fee brokers and broader
service  offerings from other discount  brokers could limit the Company's growth
or even lead to a decline in the Company's  customer base which would  adversely
affect its results of operations.  Industry-wide  changes in trading  practices,
such as the advent of  decimal  pricing  and the  increasing  use of  Electronic
Communications  Networks, are expected to put continuing pressure on fees earned
by discount brokers for the sale of order flow.

         The  Company,  like other  securities  firms,  is directly  affected by
general economic and market conditions including  fluctuations in trading 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 the  Company's  results  of  operations.  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.  Accordingly,  earnings for any
period  should not be considered  representative  of earnings to be expected for
any other period.

CURRENT DEVELOPMENTS

         On January 15, 1999, the Company  completed a rights  offering in which
existing  stockholders  received the right to purchase one share of Common Stock
at $7.50 for each  share of Common  Stock  owned of record as of July 29,  1998.
Approximately  961,000 shares of Common Stock were issued pursuant to the rights
offering,  generating net proceeds to the Company of  approximately  $7,000,000,
after the payment of offering expenses of approximately $270,000.

         In January 1999, the Company,  through its clearing agent, unveiled its
new  interactive  palm-top  service that allows  Siebert  clients to make equity
trades, receive  confirmations,  get real-time quotes and alerts, access account
data,  send and receive e-mail and more; all without a phone or computer.  Using
the newest wireless two-way  interactive beeper  technology,  this beeper-sized,
4.9-ounce  battery-operated  device can be programmed to provide instant account
updates and real-time quotes.

         On May 28, 1999, the Company consummated the acquisition of Andrew Peck
Associates,  Inc. ("Peck").  Under the terms of the acquisition agreement,  Peck
was merged with and into Siebert and the separate  existence of Peck ceased. All
of the common stock of Peck outstanding was converted into 600,000 shares of the
Company's  common stock.  The merger is accounted for as a pooling of interests.
Accordingly,  the Company's  financial  statements have been restated to include
the results of Peck for all periods presented.



                                      -8-
<PAGE>


RESULTS OF OPERATIONS

THREE MONTHS ENDED  SEPTEMBER 30, 1999 COMPARED TO THREE EONTHS ENDED  SEPTEMBER
30, 1998


         REVENUES.  Total revenues for the three months ended September 30, 1999
were $7.8 million,  an increase of $950,000,  or 13.9%,  over the same period in
1998.

         Commission and fee income increased $1.3 million,  or 21.7%, during the
three months  ended  September  30, 1999 to $7.1  million due to higher  trading
volume,  partially offset by lower  commissions  earned per trade resulting from
the increased use of lower priced  electronic  trading1,  price  reductions  for
other related services caused by increased  competition from ultra low cost flat
fee brokers and a reduction of order flow fees.  The portion of trades  executed
electronically continues to increase, amounting to approximately 47.9% of trades
executed for the quarter  ended  September  30, 1999 as compared to 19.5% in the
quarter ended September 30,1998.  Of the electronic trades,  95.2% were executed
on the Company's SiebertNet Web site for the quarter ended September 30, 1999 as
compared to 79% for the quarter end September 30, 1998.

         Investment  banking  revenues for the three months ended  September 30,
1999 were $443,000,  an increase of $366,000,  or 475.3%,  from the three months
ended  September  30,  1998.  The increase was  primarily  due to the  Company's
increased  participation  in the number of  underwritings  completed  during the
quarter.

         The loss from equity investee Siebert,  Brandford,  Shank & Co., L.L.C.
("SBS") for the three months ended September 30, 1999 was $373,000,  compared to
net income of $427,000 for the same period in 1998. The decrease was due in part
to the decreased  number of municipal  bond  offerings as interest rates trended
higher.

         Trading  profits for the three  months  ended  September  30, 1999 were
$250,000, an increase of $57,000, or 29.5% from the three months ended September
30,  1998.  In July 1999,  management  decided to  curtail  proprietary  trading
activity  and invest the  Company's  funds in lower risk  investments  including
money market funds.

         Income from interest and dividends for the three months ended September
30, 1999 was $323,000,  an increase of $54,000,  or 20.1%, from the three months
ended  September  30, 1998  primarily due to higher cash balances as a result of
the Company's rights offering.

         EXPENSES.  Total expenses for the three months ended September 30, 1999
were $6.7 million,  an increase of $1.7 million, or 35.4%, from the three months
ended September 30, 1998.

         Employee  compensation  and benefit  costs for the three  months  ended
September 30, 1999 were $2.4 million, an increase of $318,000, or 15 %, from the
three months ended September 30, 1998.

         Clearing and floor  brokerage fees for the three months ended September
30, 1999 were $1.3  million,  an increase of  $414,000,  or 44.8% from the three
months  ended  September  30, 1998.  The  increase was due to the  substantially
increased  volume of tickets  executed,  approximately  69%, offset in part by a
lower per ticket charges to Siebert.

         Advertising and promotion expenses for the three months ended September
30, 1999 were $1.1  million,  an increase of  $458,000,  or 76.3% from the three
months ended  September  30, 1998 due  primarily to  increased  spot  television
advertising and increased media costs.

         Communications  expense for the three months ended  September  30, 1999
was  $598,000,  an increase of $117,000,  or 24.3%,  from the three months ended
September 30, 1998 primarily due to increased  quote usage by customers and news
services  offered by the Company  coupled  with an increase in the volume of the
Company business.

1    Electronic   trading   includes   SiebertNet(TM),    MarketPhone(TM),   and
     MobileBroker(TM).


                                      -9-
<PAGE>


         Occupancy  costs for the three  months  ended  September  30, 1999 were
$140,000,  an increase of $5,000, or 3.7%, from the three months ended September
30, 1998.

         Interest  expense for the three  months  ended  September  30, 1999 was
$44,000,  a decrease of $31,000,  or 41.3% from the three months ended September
30, 1998  primarily due to the decreased use of short  positions in  proprietary
trading  activities,  coupled with a decreased  activity in proprietary  trading
generally. This trading activity was curtailed by management in July 1999.

         GENERAL AND ADMINISTRATIVE. General and administrative expenses for the
three  months  ended  September  30,  1999 were $1.1  million,  an  increase  of
$464,000,  or 78.9% from the three months ended September 30, 1998 primarily due
to merger costs in connection with the Peck acquisition, higher consulting fees,
and increased  fulfillment  fees as new account leads  increased and the Company
outsourced some of its mailings.


         TAXES.  Provision for income taxes decreased for the three months ended
September  30, 1999 to $466,000 a decrease of $363,000,  or 43.8% from the three
months ended September 30, 1998, due to lower net income.

NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
1998

         REVENUES.  Total revenues for the nine months ended  September 30, 1999
were $25.6 million,  an increase of $3.1 million, or 13.6%, over the same period
in 1998.

         Commission and fee income  increased $5.4 million,  or 30.8%,  over the
nine months  ended  September  30, 1998 to $22.7  million due to higher  trading
volume partially offset by lower commissions earned per trade resulting from the
increased use of lower priced  electronic  trading,  price  reductions for other
related  services caused by increased  competition  from ultra low cost flat fee
brokers  and a  reduction  of order flow fees.  The  portion of trades  executed
electronically continues to increase, representing approximately 42.8% of trades
executed  for the nine  months  ended  September  30,  1999 as compared to 15.6%
during the nine months ended September 30, 1998. Of the electronic  trades,  92%
were  executed on the  Company's  SiebertNet  Web site for the nine months ended
September 30, 1999 as compared to 72% during the nine months ended September 30,
1998.

         Investment  banking  revenues for the nine months ended  September  30,
1999 were $1.1  million,  a  decrease  of $1.9  million,  or 64.1% from the nine
months ended  September 30, 1998, as the Company began  reporting its investment
in, and the  operations  of, SBS using the equity  method of  accounting in July
1998.  Prior  to that  time,  the  operations  of what  is now  SBS  were  fully
consolidated  with those of Siebert.  SBS  generates a majority of its revenues,
from tax exempt securities underwriting.

         The  income  from  equity  investee  (SBS)  for the nine  months  ended
September 30, 1999 was $263,000, a decrease of $164,000, or 38.4%, from the nine
months ended  September 30, 1998. The decrease  reflects  higher interest rates,
particularly  in the third  quarter,  which  resulted  in fewer  municipal  bond
offerings.

         Trading  profits  for the nine  months  ended  September  30, 1999 were
$668,000, a decrease of $293,000, or 30.5%, from the nine months ended September
30, 1998, primarily due to reduced income opportunities in the trading of listed
bond funds, the firm's principal trading activity, coupled with the exclusion of
SBS trading  profits in the current  nine month  period.  Additionally,  in July
1999,  management decided to curtail proprietary trading activity and invest the
Company's funds in lower risk investments, including money market funds.

         Income from interest and dividends for the nine months ended  September
30, 1999 was $802,000,  an increase of $119,000,  or 17.4%, from the nine months
ended  September  30, 1998  primarily due to higher cash balances as a result of
the Company's rights offering.

         EXPENSES.  Total expenses for the nine months ended  September 30, 1999
were $20.2 million,


                                      -10-
<PAGE>

an increase of $3.3 million,  or 19.5%, from the nine months ended September 30,
1998.

         Employee  compensation  and  benefit  costs for the nine  months  ended
September 30, 1999 were $8.1 million,  a decrease of $45,000,  or 1.0%, from the
nine months  ended  September  30, 1998  primarily  due to the  treatment of the
Company's  investment  in SBS using the  equity  method of  accounting,  thereby
decreasing the number of employees on the Company's payroll.

         Clearing and floor  brokerage fees for the nine months ended  September
30, 1999 were $4.2 million, an increase of $1.4 million, or 48.3%, from the nine
months ended  September  30, 1998.  The increase was due to increased  volume of
tickets executed,  approximately 90%, offset in part by lower per ticket charges
to  Siebert.  During  the 1998  period a refund  of  $750,000  was  recorded  in
connection with the renegotiated clearing agreement.

         Advertising and promotion  expenses for the nine months ended September
30, 1999 were $2.5  million,  an increase  of  $930,000,  or 60.4% from the nine
months ended  September  30, 1998  primarily  due to increased  spot  television
advertising and increased media costs.

         Communications expense for the nine months ended September 30, 1999 was
$1.8  million,  an increase  of  $433,000,  or 31.4% from the nine months  ended
September 30, 1998 primarily due to increased  quote usage by customers and news
services  offered by the Company,  coupled with an increase in the volume of the
Company's business.

         Occupancy  expenses for the nine months ended  September  30, 1999 were
$404,000,  a decrease of $58,000,  or 12.6% from the nine months ended September
30, 1998 principally due to the exclusion of SBS occupancy costs for the current
period.

         Interest  expense  for the nine  months  ended  September  30, 1999 was
$148,000, a decrease of $120,000, or 44.8%, from the nine months ended September
30, 1998  primarily due to the decreased use of short  positions in  proprietary
trading activities, coupled with decreased activity in the Company's proprietary
trading  activities.  In July 1999,  management  decided to curtail  proprietary
trading  activities  and invest the  Company's  funds in lower risk  investments
including money market funds.

         GENERAL AND ADMINISTRATIVE. General and administrative expenses for the
nine months ended September 30, 1999 were $3.1 million, an increase of $772,000,
or 33.3%,  from the nine months ended September 30, 1998 primarily due to merger
costs in  connection  with  the Peck  acquisition,  higher  consulting  fees and
increased  fulfillment  fees as new  account  leads  increased  and the  Company
outsourced some of its mailings.

         TAXES.  Provision for income taxes  increased for the nine months ended
September 30, 1999 to $ 2.3 million, an increase of $1,000, from the nine months
ended September 30, 1998.

LIQUIDITY AND CAPITAL RESOURCES

         The Company's assets are highly liquid,  consisting  generally of cash,
money market funds and securities freely saleable in the open market.  Siebert's
total assets at September 30, 1999 were $30.2 million. As of September 30, 1999,
$25.6 million,  or 84.8%, of total assets were regarded by the Company as highly
liquid.

         The Company  generated a tax deduction of $3.0 million arising from the
exercise of employees'  stock options during the nine months ended September 30,
1999.  This asset was  partially  utilized to offset $2.3 million of current tax
liability and the balance was recorded as income taxes  receivable since it will
be used to offset future tax liabilities or to claim a refund of previously paid
taxes.

         Siebert is subject to the net capital requirements of the SEC, the NYSE
and other

                                      -11-

<PAGE>


regulatory authorities.  At September 30, 1999, Siebert's regulatory net capital
was $ 13.1 million,  $12.9 million in excess of its minimum capital  requirement
of $250,000.

YEAR 2000

         Many  existing  computer  programs  use only two  digits to  identify a
specific year and therefore may not accurately  recognize the upcoming change in
the century. If not corrected,  many computer  applications could fail or create
erroneous  results by or at the Year 2000.  Due to the  Company's  dependence on
computer  technology  in its  operations,  and the  dependence  of the financial
services  industry  on computer  technology,  the nature and impact of Year 2000
processing  failures on the Company's business,  financial position,  results of
operations or cash flows could be material.  The Company is currently  modifying
its  computer  systems  in order to  enable  its  systems  to  process  data and
transactions   incorporating   Year  2000  dates  without   material  errors  or
interruptions.  Because systems critical to the Company's functioning other than
its computer  systems also may be affected by the century change,  the Company's
Year 2000 compliance efforts also encompass  facilities and equipment which rely
on date-dependent technology, such as, building equipment that contains embedded
technology.

         The Company  utilizes both systems housed primarily on its own computer
network  and  systems  housed on the  computers  of third  parties,  such as its
clearing broker and payroll vendor,  to conduct its normal business  activities.
Some of the systems on its network  are  proprietary  but many are off the shelf
programs  acquired from vendors.  The Company has  inventoried  those systems it
believes are critical to its  operations  and has received  assurances  from the
developers,  vendors and third  parties that those systems are, or will be prior
to December  31, 1999,  Year 2000  compliant.  Although  nothing has come to the
Company's  attention  which would cause it to believe that the assurances it has
received are not  accurate,  the failure of one or more  critical  systems to be
Year 2000 compliant  could have a material  adverse effect on the results of its
operations.  The Company has tested and  continues to test all critical  systems
during 1999. The total costs incurred to date and in the future relating to this
issue are not expected to be material.

         While the Company  believes that its critical  hardware and software is
Year 2000 compliant,  the Company has adopted a contingency  plan that addresses
critical  systems  such as  communications,  quotes,  Internet  site and  backup
trading facility.  The plan provides for redundant systems in case the Company's
primary systems fail. The Company's clearing agent,  National Financial Services
Corporation  ("NFSC") is  certified  as Year 2000  compliant  through its parent
company,  Fidelity  Investments.  NFSC's  inability to operate and the Company's
lack of alternative  clearing  arrangements would have a material adverse effect
on our business operations.

IMPACT OF INFLATION

         General inflation in the economy increases  operating  expenses of most
businesses.  The Company has provided  compensation  increases generally in line
with the inflation rate and incurred higher prices for goods and services. While
the Company is subject to inflation as described above, management believes that
inflation  currently does not have a material effect on the Company's  operating
results,  but there can be no assurance  that this will continue to be so in the
future.

NEW ACCOUNTING PRINCIPLES

         During 1997, and 1998, the Financial  Accounting Standards Board issued
the following account standards: Statement of Financial Accounting Standards No.
130,  "Reporting  Comprehensive  Income" (SFAS No. 130),  Statement of Financial
Accounting  Standards No. 131,  "Disclosures about Segments of an Enterprise and
Related Information" (SFAS No. 131), Statement of Financial Accounting Standards
No. 132 "Employers  Disclosures about Pension and other Post retirement  Benefit
Plans" (SFAS No. 132) and  Statement of Financial  Accounting  Standards No. 133
"Accounting  for Derivative  Instruments  and Hedging  Activities.  There was no
material  effect  from the  adoption  of SFAS 131 and 132 and  Company  does not
expect any material effect from adoption of SFAS Nos. 133, as amended,  which is
effective for fiscal periods beginning after June 15, 2000.

                                      -12-

<PAGE>


Item 3.  Quantitative and Qualitative Disclosures About Market Risk

FINANCIAL INSTRUMENTS HELD FOR TRADING PURPOSES:

         Through Siebert,  the Company maintains  inventories in exchange-listed
and Nasdaq equity  securities on both a long and short basis.  The fair value of
all  securities  at September  30, 1999 was  approximately  $2.6 million in long
positions and  approximately  $46,000 in short positions.  The fair value of all
securities  at  September  30,  1998  was  approximately  $4.8  million  in long
positions and  approximately  $638,000 in short positions.  Using a hypothetical
10% increase or decrease in prices,  the  potential  loss or gain in fair value,
respectively,   is  estimated  to  be   approximately   $258,000  and  $412,000,
respectively,  due to the  offset  of  change  in fair  value in long and  short
positions.

FINANCIAL INSTRUMENTS HELD FOR PURPOSES OTHER THAN TRADING:

         Working capital is generally temporarily invested in dollar denominated
money market funds and overnight certificates of deposits. These investments are
not subject to material changes in value due to interest rate movements.

                                      -13-

<PAGE>


PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

         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.

Item 2.  Changes in Securities and Use of Proceeds

                  None

Item 3.  Defaults Upon Senior Securities

                  None

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

                  None

Item 5.  Other Information

                  None

Item 6.  Exhibits and Reports on Form 8-K

                  (a)      Exhibits

                  10.10    Employment  Agreement,  dated as of  April  9,  1999,
                           between the Company and Daniel Jacobson

                  27       Financial Data Schedule

                  (b)      Reports on Form 8-K

                           None

                                      -14-

<PAGE>


                                   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.


         NAME                      TITLE                       DATE
         ----                      -----                       ----

/s/Muriel F. Siebert      Chair, President and Director        November 12, 1999
-----------------------
Muriel F.  Siebert        (principal executive officer)



/s/Mitchell M. Cohen      Chief Financial Officer             November 12, 1999
-----------------------
Mitchell M.  Cohen        and Assistant Secretary
                          (principal financial and
                          accounting officer)

                                      -15-