Statement of Financial Condition
UBS Securities LLC
Notes to the Statement of Financial Condition (continued)
(In Thousands)
13. Related Party Transactions (continued)
Banking Activities
Bank balances at affiliates are reported in cash and cash equivalents or short-term borrowings on
the statement of financial condition. Outstanding balances at December 31, 2021 are reflected in
the table above.
The Company clears customer and proprietary commodity transactions primarily for UBS London
Branch. Receivables and payables in connection with these services are reported in receivable from
and payable to brokers, dealers and clearing organizations on the statement of financial condition.
At December 31, 2021, receivables and payables related commodity transactions totaled $212,756
and $208,149 respectively. A commission is either earned or charged related to these transactions.
The Company also provides securities and futures execution, clearance and custody services
primarily for UBS London Branch. Receivables and payables in connection with these services
are reported in receivable from and payable to brokers, dealers and clearing organizations on the
statement of financial condition. At December 31, 2021, receivables and payables related securities
and futures execution totaled $283,059 and $1,362,787 respectively.
Brokerage Activities
At times, affiliates, primarily UBS London Branch and UBS Europe SE, are counterparties to
trades executed by the Company. In the event these trades fail to settle on contractual settlement
date, outstanding receivables or payables are reported in receivable from and payable to brokers,
dealers and clearing organizations on the statement of financial condition. At December 31, 2021,
receivables and payables related to fails totaled $374,418 and $627,511 respectively.
SEC Rule 15a-6 Transactions
The Company acts as chaperoning broker with respects to trades between certain foreign affiliates
and their US clients in accordance with SEC Rule 15a-6. These transactions need not be included
on balance sheet. In this capacity, the Company may be exposed to the risk of the foreign affiliates'
non- performance. This risk is considered to be remote.
Collateralized Financing Activities
The Company enters into resale and repurchase agreements primarily with UBS Stamford Branch
and UBS Financial Services Inc., as well as other affiliates under master repurchase agreements.
Resale agreements, which are entered into primarily to facilitate client activities and to cover short
sales, are reported in securities purchased under agreement to resell on the statement of financial
condition and are as set forth in the table above. Repurchase agreements, which are entered into
for financing purposes, are reported in securities sold under agreements to repurchase on the
statement of financial condition and are as set forth on the table above.
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