Record keeper DST getting into the clearing business

Firm hires Craig Gordon, former head of clearing at RBC Capital, to lead the effort

Apr 28, 2014 @ 11:35 am

By Bruce Kelly

recordkeeping, clearing, dst, rbc capital
+ Zoom

DST Systems Inc., a leading financial services technology company, is getting into the clearing business for independent broker-dealers, and has tapped an experienced industry executive to lead the effort.

The company announced Monday it hired Craig Gordon to lead the new clearing business. Mr. Gordon was the head of clearing at RBC Capital Markets, where he spent 14 years. He left that job in January.

DST's move to clearing is counter to the prevailing trend of financial services firms running away from the low-margin, high-cost clearing business. There are about 15 clearing firms left in an industry that, 20 years ago, had more than 100.

DST is the world's largest provider of third-party mutual fund record keeping services, according to a statement from the company.

“Our end goal is to be recognized as the industry leader in providing full-service clearing through a salable and efficient platform,” Mr. Gordon said in the statement. “I think we have a real opportunity to quickly transform the clearing services model into one that actually helps broker-dealers grow their business.”

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Albridge's Butler: Making advisers of tomorrow more effective and efficient

Gadget Girl checks out the latest tech from Albridge and how they're helping advisers stay one step ahead of the curve.

Video Spotlight

Will It Last As Long As Your Clients Do?

Sponsored by Prudential

Video Spotlight

The Catalyst

Sponsored by Pershing

Latest news & opinion

Brian Block's $4 million bonus was tied to a key metric at ARCP

Prosecution rests case in fraud trial against CFO of American Realty Capital Properties.

Edward Jones is winning the Google search war

Brokerage firm's digital marketing investment helps land it at the top of local and overall search engine results, report finds.

Voya's win in 401(k) fee suit involving Financial Engines bodes well for other record keepers

Fidelity, Aon Hewitt and Xerox HR Solutions are currently defending against similar fiduciary-breach claims.

Collective investment trusts getting more attention from 401(k) advisers

The funds are catching on due largely to lower costs and more product availability, but come with some inherent drawbacks.

Vanguard rides robo-advice wave to $65B in assets

Personal Advisor Services, four times the size of its closest competitor, combines digital and human touch.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print