Statement of Financial Condition
UBS Securities LLC
Notes to the Statement of Financial Condition (continued)
(In Thousands)
13. Related Party Transactions (continued)
The Company enters into securities borrow and securities loan transactions primarily with UBS
London Branch and UBS Financial Services Inc. under securities lending agreements. Securities
borrow activities, which are entered into for short sales and other financing activities are reported
in securities borrowed on the statement of financial condition and are as set forth above. Securities
loan activities, which are entered into for financing purposes, are reported in securities loaned on
the statement of financial condition and are as set forth in the table above.
The Company enters into unsecured short-term lending agreements with UBS Americas Holding
LLC. Short-term borrowings are due on demand and bear interest based on variable rates ranging
from 0.08% to 0.60% as of December 31, 2021.
Balances related to these agreements are reported as short-term borrowings on the statement of
financial condition and are represented in the table above.
The Company also enters into term subordinated lending agreements with UBS Americas Holding
LLC. This subordinated debt is reported in the Liabilities and Members' Equity section of the
statement of financial condition. See Note 11.
Prepaid Variable Forward Agreements
The Company hedges prepaid variable forward agreements with UBS London Branch. See Note
6 for additional details of the transactions. Payables in connection with these transactions are
reported in financial liabilities designated at fair value on the statement of financial condition.
Affiliate Arrangements
Pursuant to various service fee arrangements, the Company provides and receives services to and
from affiliates. The related receivable and payable are included in other assets and other liabilities
and accrued expenses on the statement of financial condition.
The Company primarily uses office space leased by the UBS AG New York Branch, and is charged
accordingly under the aforementioned service fee arrangements.
The Company is provided technical, operational and computer service support primarily through
UBS Business Solutions LLC, an affiliated entity, in the normal course of business.
In addition, other costs were initially expensed in UBS affiliated companies and allocated back to
the Company on a regular basis through the use of service level agreements.
These costs include charges for, but are not limited to, Communications & Branding, Vendor
Management, Group Internal Audit, Group Management and Group Corporate Services.
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