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.”