Fidelity expands clearing business into Canada

Firm aims to give U.S. broker-dealers better access to that market

Sep 27, 2009 @ 12:01 am

By Bruce Kelly

Fidelity Investments said this morning it is expanding its clearing business into Canada, with the intention of serving U.S. broker-dealers looking for a toehold in the market, while also targeting Canadian broker-dealers.

U.S. clearing firms don't have much reach in the Canadian market of roughly 200 broker-dealers that use clearing firms. Penson Worldwide Inc. performs clearing operations for broker-dealers there, while broker-dealers with reps in Canada — such as Raymond James & Associates Inc., and Edward D. Jones & Co. LP — clear and hold assets in custody for those advisers.

The new group, called Fidelity Clearing Canada ULC, was “set up for U.S. broker-dealers who have or want offices in Canada,” said Richard Hart, a senior vice president for National Financial Services LLC, Fidelity's clearing arm.

Fidelity has two Canadian -broker-dealers as clearing clients: Integral Wealth Securities Ltd. and execution specialist Jitney-Trade.

Fidelity, which will offer back-office support, such as trade execution clearing and custody, has hired Richard Ness as acting CEO of Fidelity Clearing Canada. A veteran of Penson in Canada, he has most recently been a consultant with Tactico Inc.

E-mail Bruce Kelly at bkelly@investmentnews.com.

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