# EDGAR Filing Document

**Accession Number:** 0001169342
**File Stem:** 0001169342-23-000002
**Filing Date:** 2023-3
**Character Count:** 19201
**Document Hash:** 10fc7f5ae5d8d8587bd9f4641ab69709
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001169342-23-000002.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0001169342-23-000002

**CONFORMED SUBMISSION TYPE**: X-17A-5

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230301

**EFFECTIVENESS DATE**: 20230301

**PERIOD START**: 20220101

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** OBEX SECURITIES LLC
- **CENTRAL INDEX KEY:** 0001169342
- **IRS NUMBER:** 134187305
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** X-17A-5
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 008-65242
- **FILM NUMBER:** 23692582

**BUSINESS ADDRESS:**
- **STREET 1:** 290 OVERLOOK ROAD
- **CITY:** NEW ROCHELLE
- **STATE:** NY
- **ZIP:** 10804
- **BUSINESS PHONE:** 914-833-1800

**MAIL ADDRESS:**
- **STREET 1:** 290 OVERLOOK ROAD
- **CITY:** NEW ROCHELLE
- **STATE:** NY
- **ZIP:** 10804

### Attached PDF Documents

**Attachment 1:** `X-17A-5public.pdf`

# UNITED STATES

# SECURITIES AND EXCHANGE COMMISSION

# Washington, D.C. 20549

# OMB APPROVAL

OMB Number: 3235-0123

Expires: Oct. 31, 2023

Estimated average burden

hours per response: 12

# ANNUAL REPORTS

# FORM X-17A-5

# PART III

# SEC FILE NUMBER

# 8-65242

# FACING PAGE

Information Required Pursuant to Rules 17a-5, 17a-12, and 18a-7 under the Securities Exchange Act of 1934

| FILING FOR THE PERIOD BEGINNING | 01/01/2022 | AND ENDING | 12/31/2022 |
| --- | --- | --- | --- |
|  | MM/DD/YY |  | MM/DD/YY |

# A. REGISTRANT IDENTIFICATION

NAME OF FIRM: ODEX Securities LLC

TYPE OF REGISTRANT (check all applicable boxes):

☑ Broker-dealer

☐ Security-based swap dealer

☐ Major security-based swap participant

☐ Check here if respondent is also an OTC derivatives dealer

ADDRESS OF PRINCIPAL PLACE OF BUSINESS: (Do not use a P.O. box no.)

290 Overlook Road

| (No. and Street) |  |  |
| --- | --- | --- |
| New Rochelle | NY | 10804 |
| (City) | (State) | (Zip Code) |

PERSON TO CONTACT WITH REGARD TO THIS FILING

| (Name) | (Area Code - Telephone Number) | (Email Address) |
| --- | --- | --- |

# B. ACCOUNTANT IDENTIFICATION

INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*

LMHS, P.C.

| (Name - if individual, state last, first, and middle name) |  |  |  |
| --- | --- | --- | --- |
| 80 Washington Street Building S | Norwell | MA | 02061 |
| (Address) | (City) | (State) | (Zip Code) |
| 2/24/2009 |  | 3373 |  |
| (Date of Registration with PCAOB)(if applicable) |  | (PCAOB Registration Number, if applicable) |  |
| FOR OFFICIAL USE ONLY |  |  |  |

* Claims for exemption from the requirement that the annual reports be covered by the reports of an independent public accountant must be supported by a statement of facts and circumstances relied on as the basis of the exemption. See 17 CFR 240.17a-5(e)(1)(ii), if applicable.

Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.

# OATH OR AFFIRMATION

I, Alice M Rooney, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of OBEX Securities LLC, as of December 31, 2022, is true and correct. I further swear (or affirm) that neither the company nor any partner, officer, director, or equivalent person, as the case may be, has any proprietary interest in any account classified solely as that of a customer.

CATHERINE A. MORHOUS
NOTARY PUBLIC, STATE OF NEW YORK
Registration No. O1MO6006223
Qualified in Westchester County
My Commission Expires 4/27/2024
Signature: Alice M Rooney
Title: CFO

Notary Public

This filing** contains (check all applicable boxes):

☑ (a) Statement of financial condition.
☑ (b) Notes to consolidated statement of financial condition.
☐ (c) Statement of income (loss) or, if there is other comprehensive income in the period(s) presented, a statement of comprehensive income (as defined in § 210.1-02 of Regulation S-X).
☐ (d) Statement of cash flows.
☐ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
☐ (f) Statement of changes in liabilities subordinated to claims of creditors.
☐ (g) Notes to consolidated financial statements.
☐ (h) Computation of net capital under 17 CFR 240.15c3-1 or 17 CFR 240.18a-1, as applicable.
☐ (i) Computation of tangible net worth under 17 CFR 240.18a-2.
☐ (j) Computation for determination of customer reserve requirements pursuant to Exhibit A to 17 CFR 240.15c3-3.
☐ (k) Computation for determination of security-based swap reserve requirements pursuant to Exhibit B to 17 CFR 240.15c3-3 or Exhibit A to 17 CFR 240.18a-4, as applicable.
☐ (l) Computation for Determination of PAB Requirements under Exhibit A to § 240.15c3-3.
☐ (m) Information relating to possession or control requirements for customers under 17 CFR 240.15c3-3.
☐ (n) Information relating to possession or control requirements for security-based swap customers under 17 CFR 240.15c3-3(p)(2) or 17 CFR 240.18a-4, as applicable.
☐ (o) Reconciliations, including appropriate explanations, of the FOCUS Report with computation of net capital or tangible net worth under 17 CFR 240.15c3-1, 17 CFR 240.18a-1, or 17 CFR 240.18a-2, as applicable, and the reserve requirements under 17 CFR 240.15c3-3 or 17 CFR 240.18a-4, as applicable, if material differences exist, or a statement that no material differences exist.
☐ (p) Summary of financial data for subsidiaries not consolidated in the statement of financial condition.
☑ (q) Oath or affirmation in accordance with 17 CFR 240.17a-5, 17 CFR 240.17a-12, or 17 CFR 240.18a-7, as applicable.
☐ (r) Compliance report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
☐ (s) Exemption report in accordance with 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
☑ (t) Independent public accountant's report based on an examination of the statement of financial condition.
☐ (u) Independent public accountant's report based on an examination of the financial report or financial statements under 17 CFR 240.17a-5, 17 CFR 240.18a-7, or 17 CFR 240.17a-12, as applicable.
☐ (v) Independent public accountant's report based on an examination of certain statements in the compliance report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
☐ (w) Independent public accountant's report based on a review of the exemption report under 17 CFR 240.17a-5 or 17 CFR 240.18a-7, as applicable.
☐ (x) Supplemental reports on applying agreed-upon procedures, in accordance with 17 CFR 240.15c3-1e or 17 CFR 240.17a-12, as applicable.
☐ (y) Report describing any material inadequacies found to exist or found to have existed since the date of the previous audit, or a statement that no material inadequacies exist, under 17 CFR 240.17a-12(k).
☐ (z) Other:

**To request confidential treatment of certain portions of this filing, see 17 CFR 240.17a-5(e)(3) or 17 CFR 240.18a-7(d)(2), as applicable.

# OBEX SECURITIES LLC

STATEMENT OF FINANCIAL CONDITION

AND

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

DECEMBER 31, 2022

# OBEX Securities LLC

# CONTENTS

Report of Independent Registered Public Accounting Firm 1

# Financial Statement

Statement of Financial Condition 2

Notes to Financial Statement 3-5

LMHS, P.C.
Certified Public Accountants and Advisors

# Report of Independent Registered Public Accounting Firm

To the Member

OBEX Securities LLC

New Rochelle, New York

# Opinion on the Financial Statements

We have audited the accompanying statement of financial condition of OBEX Securities LLC, as of December 31, 2022, and the related notes (collectively referred to as the "financial statement"). In our opinion, the financial statement presents fairly, in all material respects, the financial position of OBEX Securities LLC as of December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

# Basis for Opinion

This financial statement is the responsibility of the entity's management. Our responsibility is to express an opinion on these financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to OBEX Securities LLC in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statement is free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statement. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that our audit provides a reasonable basis for our opinion.

LMHS, P.C.

LMHS, P.C.

We have served as the OBEX Securities LLC's auditor since 2020.

Norwell, Massachusetts

March 1, 2023

80 Washington Street, Building S, Norwell, Massachusetts 02061 (781) 878-9111 FX (781) 878-3666 www.lmhspc.com

Members of AICPA

# OBEX SECURITIES LLC

## STATEMENT OF FINANCIAL CONDITION

December 31, 2022

### ASSETS

| Cash and cash equivalents | $190,681 |
| --- | --- |
| Total assets | $190,681 |

### LIABILITIES AND MEMBER'S EQUITY

| Liabilities |  |
| --- | --- |
| Accounts payable and accrued expenses | $2,525 |
| Total liabilities | 2,525 |

| Member's equity | 188,156 |
| --- | --- |
| Total liabilities and member's capital | $190,681 |

See accompanying notes to financial statements. CONFIDENTIAL

3

OBEX SECURITIES LLC

NOTES TO FINANCIAL STATEMENTS

# 1. Nature of business and summary of significant accounting policies

Nature of Business

OBEX Securities LLC (the "Company") is a registered Introducing Broker with the Commodities Futures Trading Commission ("CFTC") and is a member of the National Futures Association ("NFA"). The Company is also a broker-dealer registered with the Securities and Exchange Commission ("SEC") and is a member of the Financial Industry Regulatory Authority ("FINRA"), the Securities Investor Protection Corporation ("SIPC") and the Municipal Securities Rulemaking Board ("MSRB").

The Company acts as an introducing broker and is engaged in brokerage related activities and acting as agent for foreign and United States institutional customers. Commission and interest fee income is derived principally from futures contracts, commodity options, equity, and debt securities.

Basis of Presentation

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP").

Cash and Cash Equivalents

Cash and cash equivalents include all highly liquid investments with maturities of three months or less when acquired. At December 31, 2022, cash at the clearing broker was $7,526. The Company is subject to credit risk if the clearing broker is unable to repay balances due or deliver securities in their custody.

Revenue Recognition

On January 1, 2018, the Company adopted Accounting Standards Codification ("ASC") 606 - Revenue from Contracts with Customers using the modified retrospective method and the impact was determined to be immaterial on the financial statements. The new revenue standard was applied prospectively in the financial statements from January 1, 2018 forward and reported financial information for historical comparable periods will not be revised and will continue to be reported under the accounting standards in effect during those historical periods.

Revenues are recognized when control of the promised goods or performance obligations for services is transferred to customers, in an amount that reflects the consideration we expect to be entitled to in exchange for the goods or services, referred to as "Point in Time" revenue recognition.

The Company records Advisory Service Revenue upon completion of the service obligation as described in the advisory agreement. In 2022, the Company recognized $4,770 in advisory revenue.

Security transactions and related revenues and expenses are recorded on a settlement date basis.

Investments in Securities

Securities owned and securities sold, but not yet purchased ("short Positions") are carried at quoted market values; realized gains and losses and unrealized appreciation and depreciation, are reflected in income. Short positions have additional off-balance sheet market risk to the extent that there may be an unfavorable change in the market prices and the Company has not covered the positions.

3

OBEX SECURITIES LLC

NOTES TO FINANCIAL STATEMENTS

# 1. Nature of business and summary of significant accounting policies (continued)

Income Taxes

The Company is a limited liability company, with one member, accordingly, the Company is considered a disregarded entity for income tax purposes and all activity is included in the income tax return of the member.

At December 31, 2022, management has determined that the Company had no uncertain tax positions that would require financial statement recognition. This determination will always be subject to ongoing reevaluation as facts and circumstances may require. The Company remains subject to U.S. federal and state income tax audits for all periods subsequent to 2022.

Subsequent Events

These financial statements were approved by management and available for issuance on March 1, 2023. Subsequent events have been evaluated through this date.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires the Company's management to make estimates and assumptions that affect the amounts disclosed in the financial statements. Actual results could differ from those estimates.

# 2. Net capital requirement

The Company, as a member of FINRA, is subject to the Securities and Exchange Commission Uniform Net Capital Rule 15c3-1. This Rule requires the maintenance of minimum net capital and that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1 and that equity capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1. The Company is also subject to the CFTC's minimum financial requirements which require that the Company maintain net capital, as defined, equal to the greater of its requirements under Regulation 1.17 under the Commodity Exchange Act or Rule 15c3-1. At December 31, 2022, the Company's net capital was $187,446, which was approximately $87,446 in excess of its minimum requirement of $100,000.

# 3. Off-balance sheet risk

Pursuant to clearance agreements, the Company introduces all of its securities transactions to clearing brokers on a fully-disclosed basis. All the customers' money balances and long and short security positions are carried on the books of the clearing brokers. In accordance with the clearance agreements, the Company has agreed to indemnify the clearing brokers for losses, if any, which the clearing brokers may sustain from carrying securities transactions introduced by the Company. In accordance with industry practice and regulatory requirements, the Company and the clearing brokers monitor collateral on the customers' accounts.

In addition, the receivables from the brokers/dealers are pursuant to these clearance agreements and includes a clearing deposit of $1,990 which is include in cash and cash equivalent.

4

OBEX SECURITIES LLC

NOTES TO FINANCIAL STATEMENTS

# 4. Concentrations of credit risk

In the normal course of business, the Company's customer activities involve the execution, settlement, and financing of various customer securities transactions. These activities may expose the Company to off-balance-sheet risk in the event the customer or other broker is unable to fulfill its contracted obligations and the Company has to purchase or sell the financial instrument underlying the contract at a loss.

The Company maintains its cash balances in various financial institutions. These balances are insured by the Federal Deposit Insurance Corporation up to $250,000 per institution.

# 5. Exemption from Rule 15c3-3

The Company is exempt from the Securities and Exchange Commission Rule 15c3-3 and, therefore, is not required to maintain a "Special Reserve Bank Account for the Exclusive Benefit of Customers".

# 6. Related party transactions

OBEX Investments LLC ("OBEX Investments"), a company related through common ownership, provided the Company with office space and administrative services in 2022 under a management agreement which expired on December 31, 2022. The Company paid $190,500 to OBEX Investments for the year ended December 31, 2022, under this agreement.

# 7. Receivable from brokers/dealers

At December 31, 2022, there was not a balance due from clearing firms for commission receivables.

# 8. Lease Obligations

On February 26, 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (ASU) No2016-2 Leases (topic 842) to increase transparency and compatibility among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing transactions. On January 1, 2020, the Company adopted ASU 2016-2. The application of this new lease obligation standard did not result in any adjustments to the opening balance of retained earnings.

5

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

## FORM X-17A-5

### ANNUAL AUDITED REPORT

### Filer Information

**Filer CIK:** 0001169342

**Filer CCC:** XXXXXXXX

**Is this a LIVE or TEST filing?:** LIVE

**Would you like a Return Copy?:** Yes

### Submission Information

**Report Period Begin Date:** 01-01-2022

**Report Period End Date:** 12-31-2022

**Type of Registrant:** Broker-dealer

**Any material weaknesses identified?:** No

### Registrant Identification

**Name of Broker-Dealer:** OBEX SECURITIES LLC

**Business Address:** 290 OVERLOOK ROAD, NEW ROCHELLE, NY, 10804

**Contact Person:** Alice Rooney

**Contact Phone:** 9148331800

### Independent Public Accountant Identification

**Accountant Name:** LMHS, P.C.

**Accountant Address:** 80 Washington Street Building S, Norwell, MA, 02061

**Accountant Type:** Certified Public Accountant

### OATH OR AFFIRMATION

I, **Alice Rooney**, swear (or affirm) that, to the best of my knowledge and belief, the accompanying financial statements and supporting schedules pertaining to the firm of **OBEX SECURITIES LLC**, as of **12-31-2022**, are true and correct.

**Signature:** Alice Rooney

**Title:** CFO

**Notarized:** Yes