# EDGAR Filing Document

**Accession Number:** 0000921107
**File Stem:** 0000921107-23-000005
**Filing Date:** 2023-3
**Character Count:** 35146
**Document Hash:** 016d82f909d7667cd2e24194410819cf
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000921107-23-000005.hdr.sgml**: 20230330

**ACCESSION NUMBER**: 0000921107-23-000005

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

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230330

**DATE AS OF CHANGE**: 20230330

**EFFECTIVENESS DATE**: 20230330

**PERIOD START**: 20220101

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CODA MARKETS, INC.
- **CENTRAL INDEX KEY:** 0000921107
- **IRS NUMBER:** 352340554
- **STATE OF INCORPORATION:** CT
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** X-17A-5
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 008-47077
- **FILM NUMBER:** 23782227

**BUSINESS ADDRESS:**
- **STREET 1:** 2624 PATRIOT BOULEVARD
- **STREET 2:** SUITE 210
- **CITY:** GLENVIEW
- **STATE:** IL
- **ZIP:** 60026
- **BUSINESS PHONE:** 2245212494

**MAIL ADDRESS:**
- **STREET 1:** 2624 PATRIOT BOULEVARD
- **STREET 2:** SUITE 210
- **CITY:** GLENVIEW
- **STATE:** IL
- **ZIP:** 60026

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PDQ ATS, INC.
- **DATE OF NAME CHANGE:** 20081008

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PB TRADE LTD
- **DATE OF NAME CHANGE:** 20080905

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PDQ ATS, INC.
- **DATE OF NAME CHANGE:** 20080904

### Attached PDF Documents

**Attachment 1:** `CODA_YE_2022_Public_EDGAR.pdf`

# **CODA Markets, Inc.**  
**Financial Statements and Supplemental Schedules**  
**With Report of Independent Registered Public Accounting Firm**

As of and for the year ended December 31, 2022

## CONFIDENTIAL DOCUMENT

This report is deemed confidential in accordance with Rule 17A-5(e)(3) under the Securities Exchange Act of 1934. The Statement of Financial Condition has been filed with the Securities and Exchange Commission simultaneously herewith as a public document.

Confidential Pursuant to Rule 17a-5(e)(3) and Rule 17 CFR 1.10(g)

DocuSign Envelope ID: DC8AAA86-A874-4DB1-8546-F549CE1ED09A

# 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

SEC FILE NUMBER

8-47077

# ANNUAL REPORTS

# FORM X-17A-

# PART II

# 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 01/01/22 AND ENDING 12/31/22

MM/DD/YY

MM/DD/YY

# A. REGISTRANT IDENTIFICATION

NAME OF FIRM: CODA Markets, Inc.

TYPE OF REGISTRANT (check all applicable boxes):

☑ Broker-dealer ☐ Security-based swap dealer ☐ Major security-based swap participan

☐ Check here if respondent is also an OTC derivatives dealer

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

2624 Patriot Blvd.

(No. and Stre

Glenview

(City)

IL

(State)

60026

(Zip Cod

PERSON TO CONTACT WITH REGARD TO THIS FILING

John Mollica 212-658-1106 jmollica@apexfintechsolutions.com

(Name)

(Area Code - Telephone Number)

(Email Address)

# B. ACCOUNTANT IDENTIFICATION

INDEPENDENT PUBLIC ACCOUNTANT whose reports are contained in this filing*

RSM US LLP

(Name - if individual, state last, first, and middle name)

30 South Wacker Drive, Suite 3300

(Address)

Chicago

(City)

IL

(State)

60606

(Zip Code)

09/24/2003

49

(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 num

DocuSign Envelope ID: DC8AAA86-A874-4DB1-8546-F549CE1ED09A

# OATH OR AFFIRMATION

I, John Mollica, swear (or affirm) that, to the best of my knowledge and belief, the financial report pertaining to the firm of CODA Markets, Inc., 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.

The Company is making this filing without a notarization based upon the updated Division of Markets Staff Statement Regarding Requirements for Certain Paper Submissions in Light of COVID-19 Concerns (6/18/2020) and difficulties arising from COVID-19.

Notary Publ

DocuSigned by:  
 002400DD74A041E...

Title:
CEO

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 flow
☑ (e) Statement of changes in stockholders' or partners' or sole proprietor's equity.
☐ (f) Statement of changes in liabilities subordinated to claims of creditor
☑ (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-
☐ (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.

## Table of Contents

| Report of Independent Registered Public Accounting Firm | 2 |
| --- | --- |
| Financial Statements |  |
| Statement of Financial Condition | 4 |
| Statement of Operations | 5 |
| Statements of Changes in Stockholder's Equity | 6 |
| Statement of Cash Flows | 7 |
| Notes to the Financial Statements | 8 |
| Supplemental Information |  |
| Schedule I: Computation of Net Capital Pursuant to Rule 15c3-1 Under the Securities Exchange Act of 1934 | 19 |
| Schedule II: Formula for Determination of Customer Account Reserve Requirements of Brokers and Dealers Pursuant to Rule 15c3-3 Under the Securities Exchange Act of 1934 | 21 |
| Schedule III: Information Relating to the Possession or Control Requirements for Brokers and Dealers Pursuant to Rule 15c3-3 Under the Securities Exchange Act of 1934 | 22 |
| Exemption Report as Required by Rule 17a-5 Under the Securities Exchange Act of 1934 |  |
| Report of Independent Registered Public Accounting Firm | 24 |
| Exemption Report | 25 |

1

RSM US LLP

# Report of Independent Registered Public Accounting Firm

Board of Directors
CODA Markets, Inc.

# Opinion on the Financial Statements

We have audited the accompanying statement of financial condition of CODA Markets, Inc. (the Company), as of December 31, 2022, the related statements of operations, changes stockholder's equity, and cash flows for the year then ended, and the related notes to the financial statements. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

# Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's 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 the Company in accordance with 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 statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

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 statements. 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 statements. We believe that our audit provides a reasonable basis for our opinion.

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2

RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International.

### **Supplemental Information**

The supplementary information contained in Schedules I, II and III (the Supplemental Information) has been subjected to audit procedures performed in conjunction with the audit of the Company's financial statements. The Supplemental Information is the responsibility of the Company's management. Our audit procedures included determining whether the Supplemental Information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the Supplemental Information. In forming our opinion on the Supplemental Information, we evaluated whether the Supplemental Information, including its form and content, is presented in conformity with 17 C.F.R. § 240.17a-5. In our opinion, the supplementary information contained in Schedules I, II and III is fairly stated, in all material respects, in relation to the financial statements as a whole.

We have served as the Company's auditor since 2022.

*RSM US LLP*

Chicago, Illinois March 30, 2023

3

# **CODA MARKETS, INC.**  
 **STATEMENT OF FINANCIAL CONDITION**

|  | December 31, 2022 |
| --- | --- |
| Assets |  |
| Cash | $4,513,793 |
| Receivables, net |  |
| Receivables from affiliates | 135,038 |
| Brokers, dealers, correspondents and clearing organizations | 3,392,732 |
| Total receivables, net | 3,527,770 |
| Property and equipment, net | 546,076 |
| Intangible assets, net | 1,225 |
| Other assets | 744,915 |
| Total assets | $9,333,779 |
| Liabilities and stockholder’s equity |  |
| Payables to brokers, dealers, correspondents and clearing organizations | 48,198 |
| Payables to Affiliates | 153,682 |
| Accrued expenses and other liabilities | 1,781,530 |
| Total liabilities | 1,983,410 |
| Commitments and contingencies |  |
| Stockholder’s equity |  |
| Common stock, $0.01 par value | 10 |
| 20,000 shares authorized; 1,000 issued and outstanding |  |
| Additional paid-in capital | 13,040,053 |
| Accumulated deficit | (5,689,694) |
| Total stockholder’s equity | 7,350,369 |
| Total liabilities and stockholder’s equity | $9,333,779 |

*See accompanying notes to financial statements.*

Confidential Pursuant to Rule 17a-5(e)(3)

4

# **CODA MARKETS, INC.**  
 **STATEMENT OF OPERATIONS**

|  | Year Ended December 31, 2022 |
| --- | --- |
| Revenues |  |
| Commissions and payment for order flow revenue | $19,819,815 |
| Reimbursable fees | 4,799,242 |
| Other income | 156,689 |
| Total non-interest income | 24,775,746 |
| Interest income | 9,950 |
| Total net interest income | 9,950 |
| Total revenues | 24,785,696 |
| Expenses |  |
| Employee compensation and benefits | 16,538,131 |
| Execution, clearing and brokerage fees | 9,742,475 |
| Reimbursable fees | 4,799,242 |
| Communications | 2,616,751 |
| Administrative and general | 962,433 |
| Occupancy, depreciation and amortization | 681,981 |
| Total expenses | 35,341,013 |
| Loss before income taxes | (10,555,317) |
| Income tax benefit | (2,385,738) |
| Net loss | $(8,169,579) |

*See accompanying notes to financial statements.*

Confidential Pursuant to Rule 17a-5(e)(3)

5

# **CODA MARKETS, INC.**  
 **STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY**

|  | Common Stock |  | Additional Paid-in Capital | Retained Earnings (Accumulated deficit) | Total Stockholder's Equity |
| --- | --- | --- | --- | --- | --- |
|  | Shares | Amount |  |  |  |
| Balance as of December 31, 2021 | 1,000 | $10 | $3,002,408 | $2,479,885 | $5,482,303 |
| Capital contributions | - | - | 1,500,000 | - | 1,500,000 |
| Share-based compensation | - | - | 8,537,645 | - | 8,537,645 |
| Net loss | - | - | - | (8,169,579) | (8,169,579) |
| Balance as of December 31, 2022 | 1,000 | $10 | $13,040,053 | $(5,689,694) | $7,350,369 |

*See accompanying notes to financial statements.*

Confidential Pursuant to Rule 17a-5(e)(3)

6

# **CODA MARKETS, INC.**  
 **STATEMENT OF CASH FLOWS**

|  | Year Ended December 31, 2022 |
| --- | --- |
| Cash flows from operating activities |  |
| Net loss | $(8,169,579) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |
| Share-based compensation | 8,537,645 |
| Depreciation and amortization | 326,082 |
| Allowance for credit losses on receivables from correspondents | (35,289) |
| Deferred income taxes | (601,750) |
| Changes in operating assets and liabilities: |  |
| Receivables from brokers, dealers, correspondents and clearing organizations, net | 1,202,653 |
| Receivables from customers | 149,489 |
| Receivables from affiliates | 15,962 |
| Other assets | 576,993 |
| Payables to customers | 48,198 |
| Payables to affiliates | 72,432 |
| Accrued expenses and other liabilities | (730,574) |
| Net cash provided by operating activities | 1,392,262 |
| Cash flows from investing activities |  |
| Purchase of property and equipment | (82,879) |
| Net cash used in investing activities | (82,879) |
| Cash flows from financing activities |  |
| Capital contributions | 1,500,000 |
| Net cash provided by financing activities | 1,500,000 |
| Net change in cash | 2,809,383 |
| Cash at beginning of year | 1,704,410 |
| Cash at end of year | $4,513,793 |

*See accompanying notes to financial statements.*

Confidential Pursuant to Rule 17a-5(e)(3)

7

# SUPPLEMENTAL INFORMATION

Confidential Pursuant to Rule 17a-5(e)(3)

18

# **CODA MARKETS, INC.**  
 **Schedule I**  
 **Financial and Operational Combined Uniform Single Report Part IIA**  
 **December 31, 2022**

| Total ownership equity from Statement of Financial Condition | $ | 7,350,369 |
| --- | --- | --- |
| Deduct ownership equity not allowable for Net Capital | $ | 0 |
| Total ownership equity qualified for Net Capital | $ | 7,350,369 |
| Add: |  |  |
| Liabilities subordinated to claims of general creditors allowable in computation of net capital | $ | 0 |
| Other (deductions) or allowable credits (list) | $ | 0 |
| Total capital and allowable subordinated liabilities | $ | 7,350,369 |
| Deductions and/or charges: |  |  |
| Total non-allowable assets from Statement of Financial Condition | $ | 2,960,267 |
| Secured demand note deficiency | $ | 0 |
| Commodity futures contracts and spot commodities - proprietary capital charges | $ | 0 |
| Other deductions and/or charges | $ | 0 $(2,960,267) |
| Other additions and/or allowable credits (List) |  |  |
| Net capital before haircuts on securities positions | $ | 4,390,102 |
| Haircuts on securities (computed, where applicable, pursuant to 15c3-1(f)): |  |  |
| Contractual securities commitments | $ | 0 |
| Subordinated securities borrowings | $ | 0 |
| Trading and investment securities: |  |  |
| Exempted securities | $ | 0 |
| Debt securities | $ | 0 |
| Options | $ | 0 |
| Other securities | $ | 0 |
| Undue Concentration | $ | 0 |
| Other (List) | $ | 0 $0 |
| Net Capital | $ | 4,390,102 |

# **COMPUTATION OF BASIC NET CAPITAL REQUIREMENT**

| PART A |  |
| --- | --- |
| Minimum net capital required (6-2/3% of Total aggregate indebtedness) | $131,921 |
| Minimum dollar net capital requirement of reporting broker or dealer and minimum net capital requirement of subsidiaries computed in accordance with Note | $5,000 |
| Net capital requirement (greater of Minimum net capital required or Minimum dollar net capital requirement) | $131,921 |
| Excess net capital (Net Capital less Net capital requirement) | $4,258,181 |
| Net capital less greater of 10% of Total aggregate indebtedness or 120% of Minimum dollar net capital requirement | $4,192,221 |

Confidential Pursuant to Rule 17a-5(e)(3)

19

# **CODA MARKETS, INC.**  
 **Schedule I**  
 **Financial and Operational Combined Uniform Single Report Part IIA**  
 **December 31, 2022**

# **COMPUTATION OF AGGREGATE INDEBTEDNESS**

| Total aggregate indebtedness liabilities from Statement of Financial Condition | $ | 1,978,810 |
| --- | --- | --- |
| Add: |  |  |
| Drafts for immediate credit | $ | 0 |
| Market value of securities borrowed for which no equivalent value is paid or credited | $ | 0 |
| Other unrecorded amounts (list) | $ | 0 |
| Total aggregate indebtedness | $ | 1,978,810 |
| Percentage of aggregate indebtedness to net capital (Total aggregate indebtedness divided by Net Capital) |  | 45.07% |
| Percentage of debt to debt-equity total computed in accordance with Rule 15c-3-1(d) |  | 0.00% |

Note: There are no material differences between the preceding computation and the Company's corresponding unaudited part II A of Form X-17A-5 as of December 31, 2022.

Confidential Pursuant to Rule 17a-5(e)(3)

20

# **CODA MARKETS, INC.**

# **Schedule II**

# **Formula for Determination of Customer Account Reserve Requirements of Brokers and Dealers Pursuant to Rule  
15c3-3 Under the Securities Exchange Act of 1934**

CODA Markets, Inc. claimed an exemption from 17 C.F.R. § 240.15c3-3 under the following provisions of 17 C.F.R. § 240.15c3-3 (k)(2)(ii), and was in compliance with the conditions of the exemption as of December 31, 2022.

Confidential Pursuant to Rule 17a-5(e)(3)

21

# **CODA MARKETS, INC.**

# **Schedule III**

# **Information Relating to the Possession or Control Requirements for Brokers and Dealers Pursuant to Rule 15c3-3  
Under the Securities Exchange Act of 1934**

CODA Markets, Inc. claimed an exemption from 17 C.F.R. § 240.15c3-3 under the following provisions of 17 C.F.R. § 240.15c3-3 (k)(2)(ii), and was in compliance with the conditions of the exemption as of December 31, 2022.

Confidential Pursuant to Rule 17a-5(e)(3)

22

# CODA Markets, Inc.

Exemption Report
December 31, 2022

This report is deemed CONFIDENTIAL in accordance with Rule 17a-5(e)(3) under the Securities Exchange Act of 1934.

RSM US LLP

## Report of Independent Registered Public Accounting Firm

Board of Directors and Shareholders
CODA Markets, Inc.

We have reviewed management's statements, included in the accompanying Exemption Report, in which (a) CODA Markets, Inc. identified the following provisions of 17 C.F.R. § 240.15c3-3(k) under which CODA Markets, Inc. claimed an exemption from 17 C.F.R. § 240.15c3-3: Paragraph (k)(2)(ii) (the exemption provisions) and (b) CODA Markets, Inc. stated that CODA Markets, Inc. met the identified exemption provisions throughout the most recent fiscal year without exception. CODA Markets, Inc.'s management is responsible for compliance with the exemption provisions and its statements.

Our review was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included inquiries and other required procedures to obtain evidence about CODA Markets, Inc.'s compliance with the exemption provisions. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on management's statements. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to management's statements referred to above for them to be fairly stated, in all material respects, based on the provisions set forth in paragraph (k)(2)(ii) of 17 C.F.R. § 240.15c3-3.

Chicago, Illinois
March 30, 2023

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RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International.

DocuSign Envelope ID: DC8AAA86-A874-4DB1-8546-F549CE1ED09A

# **CODA MARKETS, INC.**
**EXEMPTION REPORT**
**YEAR ENDED DECEMBER 31, 2022**

CODA Markets, Inc. (the “Company”) is a registered broker-dealer subject to Rule 17a-5 promulgated by the Securities and Exchange Commission (17 C.F.R 240.17a-5 “Reports to be made by certain brokers and dealers”) and FINRA. This Exemption Report was prepared as required by 17 C.F.R240.17a-5(d) (1) and (4). To the best of its knowledge and belief, the Company states the following:

1. The Company claimed an exemption from 17 C.F.R. 240.15c3-3 under the following provisions of 17 C.F.R. 240.15c3-3 (k)(2)(ii).
2. The Company met the identified exemption provisions in 17 C.F.R. 240.15c3-3(k)(2)(ii) throughout the most recent fiscal year without exception.

CODA Markets, Inc.

I, John Mollica, swear that, to the best of my knowledge and belief, this Exemption Report is true and correct.

DocuSigned by:  
\_\_\_\_\_  
John Mollica

3/28/2023

Date

25

# CODA Markets, Inc.

Schedule of Assessment and Payments General Assessment Reconciliation (Form SIPC-7)
December 31, 2022

This report is deemed CONFIDENTIAL in accordance with Rule 17a-5(e)(3) under the Securities Exchange Act of 1934.

RSM US LLP

## Report of Independent Registered Public Accounting Firm on Applying Agreed-Upon Procedures

Board of Directors
CODA Markets, Inc.

We have performed the procedures included in Rule 17a-5(e)(4) under the Securities Exchange Act of 1934 and in the Securities Investor Protection Corporation (SIPC) Series 600 Rules, which are enumerated below on the accompanying General Assessment Reconciliation (Form SIPC-7) for the year ended December 31, 2022. Management of CODA Markets, Inc. (the Company) is responsible for its Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7.

Management of the Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting you and SIPC in evaluating the Company's compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2022. Additionally, SIPC has agreed to and acknowledged that the procedures performed are appropriate for their intended purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The appropriateness of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the appropriateness of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

The procedures we performed and our findings are as follows:

1. Compared the listed assessment payments in Form SIPC-7 with respective cash disbursement record entries, noting no differences.
2. Compared the Total Revenue amounts reported on the Annual Audited Report Form X-17A-5 Part III for the year ended December 31, 2022, with the Total Revenue amounts reported in Form SIPC-7 for the year ended December 31, 2022, noting the following difference:

| Total revenue reported on the Annual Audited Report Form X-17A-5 Part III | $24,785,696 |
| --- | --- |
| Difference | 4,799,241 |
| Total revenue reported in Form SIPC 7 | $19,986,455 |

3. Compared any adjustments reported in Form SIPC-7 with supporting schedules and working papers, noting no differences.
4. Recalculated the arithmetical accuracy of the calculations reflected in Form SIPC-7 and in the related schedules and working papers supporting the adjustments, noting no differences.

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AUDIT | TAX | CONSULTING

RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International.

We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants and in accordance with the standards of the Public Company Accounting Oversight Board (United States). We were not engaged to, and did not, conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the Company's Form SIPC-7 and for its compliance with the applicable instructions on Form SIPC-7 for the year ended December 31, 2022. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the Company and SIPC and is not intended to be, and should not be, used by anyone other than these specified parties.

*RSM US LLP*

Chicago, Illinois March 30, 2023

**SIPC-7**

(36-REV 12/18)

SECURITIES INVESTOR PROTECTION CORPORATION

Mail Code: 8967 P.O. Box 7247 Philadelphia, PA 19170-0001

General Assessment Reconciliation

12/31/2022

**SIPC-7**

(36-REV 12/18)

For the fiscal year ended

(Read carefully the instructions in your Working Copy before completing this Form)

**TO BE FILED BY ALL SIPC MEMBERS WITH FISCAL YEAR ENDINGS**

1. Name of Member, address, Designated Examining Authority, 1934 Act registration no. and month in which fiscal year ends for purposes of the audit requirement of SEC Rule 17a-5:

CODA Markets, Inc.
2624 Patriot Boulevard
Glenview, IL 60026-8024
FINRA CRD# 36187 SEC #8-47077

Note: If any of the information shown on the mailing label requires correction, please e-mail any corrections to form@sipc.org and so indicate on the form filed.

Name and telephone number of person to contact respecting this form.

Jarred Beckerman 214-765-1278

| 2. A. General Assessment (item 2e from page 2) | $20,280 |
| --- | --- |
| B. Less payment made with SIPC-6 filed (exclude interest) | (11,821) |
| 07/27/2022 |  |
| Date Paid |  |
| C. Less prior overpayment applied | (-0-) |
| D. Assessment balance due or (overpayment) | 8,459 |
| E. Interest computed on late payment (see instruction E) for _____ days at 20% per annum | -0- |
| F. Total assessment balance and interest due (or overpayment carried forward) | $8,459 |
| G. PAYMENT: ☑ the box Check mailed to P.O. Box ☐ Funds Wired ☐ ACH ☑ Total (must be same as F above) | $8,459 |
| H. Overpayment carried forward | $(-0-) |

3. Subsidiaries (S) and predecessors (P) included in this form (give name and 1934 Act registration number):

The SIPC member submitting this form and the person by whom it is executed represent thereby that all information contained herein is true, correct and complete.

CODA Markets, Inc.

(Name of Corporation, Partnership or other organization)

Jarred Beckerman

Digitally signed by Jarred Beckerman
Date: 2023.02.28 10:29:07 -05'00'

(Authorized Signature)

Dated the 28 day of February, 2023.

Director, Controller

(Title)

This form and the assessment payment is due 60 days after the end of the fiscal year. Retain the Working Copy of this form for a period of not less than 6 years, the latest 2 years in an easily accessible place.

**SIPC REVIEWER**

Dates:

Postmarked

Received

Reviewed

Calculations _____

Documentation _____

Forward Copy _____

Exceptions:

Disposition of exceptions:

# DETERMINATION OF "SIPC NET OPERATING REVENUES" AND GENERAL ASSESSMENT

Amounts for the fiscal period beginning 01/01/2022 and ending 12/31/2022

Item No.

2a. Total revenue (FOCUS Line 12/Part IIA Line 9, Code 4030)

Eliminate cents

$19,986,455

2b. Additions:

(1) Total revenues from the securities business of subsidiaries (except foreign subsidiaries) and predecessors not included above.
(2) Net loss from principal transactions in securities in trading accounts.
(3) Net loss from principal transactions in commodities in trading accounts.
(4) Interest and dividend expense deducted in determining item 2a.
(5) Net loss from management of or participation in the underwriting or distribution of securities.
(6) Expenses other than advertising, printing, registration fees and legal fees deducted in determining net profit from management of or participation in underwriting or distribution of securities.
(7) Net loss from securities in investment accounts.

Total additions

-0-
-0-
-0-
-0-
-0-
-0-
-0-

2c. Deductions:

(1) Revenues from the distribution of shares of a registered open end investment company or unit investment trust, from the sale of variable annuities, from the business of insurance, from investment advisory services rendered to registered investment companies or insurance company separate accounts, and from transactions in security futures products.
(2) Revenues from commodity transactions.
(3) Commissions, floor brokerage and clearance paid to other SIPC members in connection with securities transactions.
(4) Reimbursements for postage in connection with proxy solicitation.
(5) Net gain from securities in investment accounts.
(6) \(100\%\) of commissions and markups earned from transactions in (i) certificates of deposit and (ii) Treasury bills, bankers acceptances or commercial paper that mature nine months or less from issuance date.
(7) Direct expenses of printing advertising and legal fees incurred in connection with other revenue related to the securities business (revenue defined by Section 16(9)(L) of the Act).
(8) Other revenue not related either directly or indirectly to the securities business. (See Instruction C):

Rental Income

(Deductions in excess of $100,000 require documentation)

-0-
-0-

6,378,441

-0-
-0-

-0-
-0-

87,720

(9) (i) Total interest and dividend expense (FOCUS Line 22/PART IIA Line 13, Code 4075 plus line 2b(4) above) but not in excess of total interest and dividend income.

(ii) 40% of margin interest earned on customers securities accounts (40% of FOCUS line 5, Code 3960).

Enter the greater of line (i) or (ii)

Total deductions

2d. SIPC Net Operating Revenues

2e. General Assessment @ .0015

-0-
6,466,161

$13,520,294

$20,280

(to page 1, line 2.A.)

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

## FORM X-17A-5

### ANNUAL AUDITED REPORT

### Filer Information

**Filer CIK:** 0000921107

**Filer CCC:** XXXXXXXX

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

**Would you like a Return Copy?:** No

### 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:** CODA MARKETS, INC.

**Business Address:** 2624 PATRIOT BOULEVARD, SUITE 210, GLENVIEW, IL, 60026

**Contact Person:** John Mollica

**Contact Phone:** 2126581106

### Independent Public Accountant Identification

**Accountant Name:** RSM US LLP

**Accountant Address:** 30 S. Wacker Dr STE 3300, Chicago, IL, 60606

**Accountant Type:** Certified Public Accountant

### OATH OR AFFIRMATION

I, **John Mollica**, swear (or affirm) that, to the best of my knowledge and belief, the accompanying financial statements and supporting schedules pertaining to the firm of **CODA MARKETS, INC.**, as of **12-31-2022**, are true and correct.

**Signature:** John Mollica

**Title:** CEO