Penson will provide Code Securities with Model B (fully- disclosed) clearing services, including real-time, web-enabled access to support its pan European equities business. Code Securities provides a range of advisory, fundraising and stock broking services for companies and investors in the European life sciences and medtech sectors.

Code Securities, which received its grant of approval from FSA in September 2004, decided to outsource its clearing business in a bid to limit back-office infrastructure whilst maximising efficiency. Code Securities selected Penson based on its flexibility, speed to market, customer-focused approach and competitive pricing model.

Under the terms of its agreement, Penson clears and settles the trades under the Penson name via its multi-currency, multi-market back-office and custody systems. As the clearer, Penson adopts the trade and the associated settlement risk. The system went live shortly after Code Securities received its FSA authorisation.

Phil Dixon, finance director, Code Securities Ltd., comments: "Code Securities selected Penson because of the strength of its commitment to service and delivery. From the ground up, Penson has provided infrastructure fundamental to the growth of our business. We have ambitious plans to develop and expand, focusing specifically on the life sciences and medtech sectors. We are confident Penson will continue to support the growth of our business by catering to our specific needs. By outsourcing our clearing operations to the experts, we are free to get on with what we do best."

Sharron Davey, head of sales and marketing, Penson Financial Services Ltd. adds: "Code Securities is one of nine new clients signed by Penson during 2004. Our rapidly growing client base underlines our position as a viable alternative to the more traditional, bank-owned market players. We relish the opportunity of working with correspondents, such as Code Securities, who are young and nimble, and mirror our ambitious plans for market growth."

Dan Son, President, Penson Worldwide, Inc., comments: "It is encouraging to see once more that our combination of flexible product offerings and our commitment to customer service is helping us secure new deals. It is this winning combination that will further strengthen our position as a dominant player in the global securities market in 2005."