SYDNEY--()--Penson Worldwide, Inc. (NASDAQ: PNSN) announced today that its Australian clearing subsidiary, Penson Financial Services Australia Pty Ltd (PFSA), will provide equities clearing services for Wilson HTM Investment Group (ASX: WIG) starting in September under a five year agreement. This is the seventh correspondent broker-dealer in Australia that PFSA has signed since commencing clearing operations nine months ago.
“There is a major transformation going on in the clearing industry here and abroad”
Wilson HTM (www.wilsonhtm.com.au), an integrated investment house that dates to 1895, employs a staff of more than 400 across offices in Sydney, Brisbane, Melbourne and a number of regional centres. It has a strategic relationship with Deutsche Bank, which has a 19.55% equity stake in Wilson HTM.
Deane Sweeney, Wilson HTM COO, said outsourcing its clearing with Penson, instead of self-clearing as it has done previously, will improve scalability to support growth, permit greater focus on the core business of trading and advisory services, enhance technology and service offerings, and improve capital management, as well as transition its clearing activities from a fixed cost to a variable cost model.
“We appreciate that Wilson HTM, a well known and highly respected broking firm, has decided to entrust their clearing business to Penson,” said Craig Mason, Managing Director and CEO of PFSA (www.penson.com/PFSA). “While the Penson name is relatively new to Australia, our people are highly regarded locally for their extensive expertise. This has given us an advantage in growing our business in Australia; providing our growing roster of brokerage firms with quality, non-conflicted, third party clearing solutions,” he said.
“Using Penson, Wilson HTM will no longer require in-house clearing related systems, or need to invest capital in the establishment and maintenance of such technology. Wilson HTM will pay for clearing services on a variable basis as its clients’ trade,” Mr. Mason added.
“In addition, Penson’s solution will enable Wilson HTM to deliver professional enterprise class clearing capabilities that a single organization could not achieve economically on its own,” Mr. Mason said. “Wilson HTM can quickly scale trading in response to client or market demand, without the lumbering cost of traditional in-house clearing-related IT and operational support.”
“There is a major transformation going on in the clearing industry here and abroad,” Mr. Mason said. “It is being driven by the desire on the part of brokerage firms to focus their capital on achieving their greatest customer value, versus building their own pipes for processing trades, and is being made possible with the emergence of a non-conflicted provider such as Penson.”
“The problem with traditional self clearing model is that it consumes a large proportion of IT resources and ties up budgets just keeping the system running and up to date – none of which confers any real strategic advantage to the business,” Mr. Mason explained. “Moving to Penson’s third party clearing platform enables a firm like Wilson HTM to benefit from our greater scale and resources. As a local clearer, we make it possible for Wilson HTM to expand trading to virtually any kind of listed security in Australia. In addition, because of Penson’s global presence, Wilson HTM can expand trading to virtually any kind of listed security traded on any major exchange. As a non-conflicted firm solely devoted to serving the needs of broker dealers around the world, Penson is focused on continual improvement and best industry practices. We only win when our correspondents win.”
About Penson Worldwide: www.penson.com
The Penson Worldwide group of companies provides execution, clearing, custody, settlement and technology infrastructure products and services to financial services firms and others servicing the global financial services industry. The Penson Worldwide group of companies includes Penson Financial Services, Inc., Penson Financial Services Canada Inc., Penson Financial Services Ltd., Nexa Technologies, Inc., Penson GHCO, Penson Asia Limited, and Penson Financial Services Australia Pty Ltd, among other companies. Headquartered in Dallas, Texas, Penson has served the clearing needs of the global financial services industry since 1995. Penson Worldwide - Building the Best Clearing and Execution Services Firm in the World.
Penson Financial Services, Inc. is a member of the New York Stock Exchange, NYSE Alternext, Chicago Stock Exchange, FINRA, the Chicago Board Options Exchange (CBOE), OneChicago, the International Securities Exchange (ISE), the NYSE Arca Exchange, the Options Clearing Corp (OCC), the MSRB, NSCC, ICMA, DTC, Euroclear, SIPC and is a participant of the Boston Options Exchange (BOX). Penson Financial Services Canada Inc. is a participating organization with the Toronto Stock Exchange, the Montreal Exchange, the CNQ Exchange and the TSX Venture Exchange, is regulated by the Investment Industry Regulatory Organization of Canada, is a member of the CIPF, CDCC and CDS and subscribes to various Canadian Alternative Trading Systems. Penson Financial Services Ltd. is a member of the London Stock Exchange and is authorized and regulated by the Financial Services Authority. Penson Financial Services Australia Pty Ltd is a member of the ASX Group, which operates the Australian Stock Exchange and the Sydney Futures Exchange. Penson GHCO is a registered Futures Commission Merchant and clearing member at the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, Kansas City Board of Trade, Minneapolis Board of Trade, NYSE Liffe, and ICE Futures.
About Wilson HTM : www.wilsonhtm.com.au
Wilson HTM Investment Group Ltd (ASX: WIG) is an investment house dating from 1895. WIG has evolved from a broking model to one centred around the investment management philosophy of client out-performance or alpha for private, corporate and institutional clients. WIG’s businesses comprises:
- capital markets, including Institutional Broking, Corporate Finance (including equity capital markets and mergers and acquisitions) and Research;
- wealth management, including Financial Advisory and Planning, discretionary and non-discretionary portfolios managed by Authorised Investment Managers (AIMs), stockbroking and the Specialty funds business of Priority Growth and Priority Core and Funds Management Services.
- business investment including developing and operating boutique funds management businesses under the Pinnacle banner and investing in selected equity and fund investments as principal.
Forward-Looking Statements
Statements contained in this news release that are not based on current or historical fact are forward-looking in nature. Such forward-looking statements are based on current plans, estimates and expectations. Forward-looking statements are based on known and unknown risks, assumptions, uncertainties and other factors. Actual results, performance, or achievements may differ materially from any future results, performance, or achievements expressed or implied by such forward-looking statements. Penson undertakes no obligation to publicly update or revise any forward-looking statement.
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