Cantor Fitzgerald to launch clearing arm

Source: Cantor Fitzgerald

Cantor Fitzgerald & Co., a leading global financial services firm, plans to launch Cantor Clearing, a service providing clearing, settlement and technology solutions for financial services firms.

Subject to FINRA approval, Cantor Clearing will provide a comprehensive suite of services to correspondent clearing firms including institutional broker dealers, online direct access broker dealers, registered investment advisors and other asset managers.

Cantor Clearing will use SunGard's integrated suite of clearing and settlement solutions to help streamline front-to-back securities processing for clients, focusing on the middle market, providing a single back-office books and records platform with real-time settlement and clearance interfaces to industry clearing houses, exchanges and other facilities. SunGard's integrated features, including pre-and post-trade analytics and portfolio analysis tools, will help drive efficiencies in transaction clearing and settlement, providing a cost-effective and competitive framework compared to alternative clearing solutions.

Noel Kimmel, CEO of Cantor Clearing and Head of Cantor Prime Services said, "The formation of Cantor Clearing will complement our comprehensive suite of products and services, and is a natural extension of our growing Prime Services platform. By leveraging existing in-house capabilities, our robust global infrastructure, cross-asset expertise and SunGard's technology, we will provide a comprehensive solution tailored to the needs of middle market clients. Cantor Clearing reflects our commitment to supporting the changing market landscape and evolving needs of our clients."

Shawn P. Matthews, Chief Executive Officer of Cantor Fitzgerald & Co., said, "We are excited about the opportunity to offer correspondent clearing services to clients, and to provide scalable solutions that support the management and growth of their businesses. We expect tremendous synergies, not only with our Prime Services group, but with Cantor's institutional sales and trading business, further enhancing our ability to serve clients' needs."

John Grimaldi, executive vice president of SunGard's North American securisecurities operations and securities finance business, said, "SunGard's suite of clearing solutions is helping correspondent clearing businesses like Cantor Clearing increase efficiency and improve client service and retention. SunGard's real-time functionality allows customers to see positions and balances as they trade, enabling real-time transparency throughout the day. SunGard also supports multiple margin methodologies, helping Cantor Clearing to more effectively calculate and report relevant data to its correspondents and compete more effectively in a challenging industry."

While the new services require FINRA approval, Cantor Clearing anticipates providing such services in the fourth quarter of 2012.

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