Pershing pushes northward

New Canadian affiliate joins Toronto Stock Exchange to execute and clear trades

Sep 20, 2012 @ 1:47 pm

By Dan Jamieson

Pershing LLC has begun what it hopes will be a major push into Canada.

The company announced last week that its new Canadian affiliate, Pershing Securities Canada Ltd., has become a member of the Toronto Stock Exchange. This move will let Pershing execute and clear trades in Canadian securities for its U.S. customers, and allow it eventually to clear and custody for Canadian customers.

The planned first step for the new affiliate is to clear and execute Canadian securities within Pershing for U.S. institutional customers, said Francis La Salla, the Pershing managing director responsible for international operations.

“The next step [for Pershing Securities Canada] is a fully disclosed institutional business, then retail,” Mr. La Salla explained.

Pershing has been executing transactions in U.S. securities for Canadian firms for the past 30 years.

The new affiliate will “allow us to speak to Canadian broker-dealers to handle their clearing business,” he said.

Pershing plans to build a physical presence in Toronto to support its clearing and custody business, but has yet to open an office.

“It wouldn't surprise me if we brought in people by the end of next year, subject to our ability to get volume,” Mr. La Salla said.

Pershing will face an “oligopoly” of large banks that dominate the investment industry in Canada, said Dan Hallett, a vice president and director at HighView Financial Group in Oakville, Ontario, an independent advisory firm.

“I can't remember the last time someone set up an independent [broker-dealer] shop in Canada,” he said. “It's gotten tougher and tougher because of the increased regulatory regime.”

But some new independent advisory firms have opened over the past few years in Canada, Mr. Hallett added. These firms are similar to multifamily office firms in the U.S.

“Firms like ours always need platform partners,” he said.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

The secret to working with next gen clients?

Alan Moore of XY Planning says working with millennials isn't as difficult as some advisers make it sound. Here are three strategies for success.

Video Spotlight

We started as a boutique firm with huge ambitions. Schwab was a perfect fit.

Sponsored by Schwab Advisor Services

Recommended Video

Keys to a successful deal

Latest news & opinion

10 millennials making their mark in Washington — and beyond

These next-generation leaders are raising their voices and gaining influence over financial advice regulation and legislation.

Warburg Pincus among private equity managers interested in acquiring Kestra Financial

Sources say Kestra is being valued at between $600 million and $800 million, about eight to 10 times EBITDA.

10 highest paid professions in America today

These are the top-paying jobs in the U.S., according to Glassdoor.

Former Merrill Lynch star broker Thomas Buck sentenced to 40 months in prison

He pleaded guilty to securities fraud in 2017; charged clients excessive commissions.

Rules for claiming Social Security at 70

Some individuals' benefits will begin automatically; others have to take action.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print