Source: Penson Financial Services
Penson Financial Services Ltd., part of the Penson Worldwide group, a leading provider of execution, clearing, custody and settlement services for the global securities markets, today announced it has been selected as outsourced clearing partner for leading UK securities house KBC Peel Hunt Ltd.
Penson will provide KBC Peel Hunt with clearing services, including real-time, web-enabled access to support its London-based business. The new service will go live on Monday 8 November 2004.
KBC Peel Hunt provides market making services to London Stock Exchange members and agency trading for institutional clients. It is switching clearing providers in a bid to enhance customer service, reduce costs and improve efficiencies. The Penson Bureau suite of services will support both business lines, which includes making markets in more than 1,200 small and mid-cap UK stocks and average daily volumes of over 4,000 transactions per day.
Tim Cockroft, CEO, KBC Peel Hunt, comments: "This is a strategic move for KBC. We have outsourced our clearing services for a number of years, enabling us to focus on our core business activities. Penson's flexible approach, industry experience and leading-edge technology solutions are unparalleled in the market."
KBC Peel Hunt has also authorised Penson to operate as 'nominee under mandate' for all UK equities. According to this agreement, Penson will act as the holder of records, responsible for the registration and transfer of securities, including the delivery of physical securities to CREST. Penson will provide this service from its City of London office, minimising operational risk and trade processing time.
Sharron Davey, Head of Sales and Marketing, Penson Financial Services Ltd, says: "This is a significant win for Penson. With nine new clients signed this year, including such a well respected, high profile correspondent as KBC Peel Hunt, Penson's experience and commitment to delivery is paying dividends."
Davey adds: "To provide KBC Peel Hunt with comprehensive clearing services, including an entirely new web front-end to provide detailed trade information, on-line, in real-time, as well the ability to up-to-date customised report, within a six-month timeframe, is a challenge for even the most experienced provider."
The transition will take place during the weekend 5-7 November, and will be live prior to LSE opening on Monday 8 November.