| Pershing scores its first two hits |
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| Since becoming a member of the Irish Stock Exchange at the start of this year, Pershing International Securities Limited has already signed up its first two clients, Goodbody Stockbrokers and Bloxham Stockbrokers. |
Pershing will provide a fully outsourced clearing and settlement service to Goodbody. Through its ‘Model A’ clearing services, Pershing will settle all of Goodbody’s client trades and issue contract notes in the firm’s name.
Bloxham Stockbrokers will outsource its trading, clearing and settlement to Pershing under its ‘Model B’ approach.
Under a Model A arrangement Pershing provides a ‘back-office for hire’ service, which involves the mechanics of the clearing process being outsourced to Pershing but nothing else. The correspondent continues to use its own name and balance sheet to support transactions and has responsibility for best execution, client suitability and other related issues. Under a Model B arrangement, Pershing Securities International Ltd will become the legal counterparty for trades and will adopt the settlement risk associated with those trades and as a result has a contractual obligation with the underlying client.
This means that Pershing assumes full legal liability for the trade and responsibility for settlement and the transfer of stock from seller to buyer, managing the link with CREST.
Pershing is a global provider of clearing and financial services outsourcing solutions to nearly 1,100 institutional and retail financial organizations and investment advisors who collectively represent more than 5 million individual investors. It is a subsidiary of The Bank of New York. |
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| Article appeared in the May 2004 issue.
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