U.S.-based Fidelity Investments has launched Fidelity Clearing Canada ULC, a new business dedicated to providing clearing, custody and back-office support services to Canadian-based brokerage firms and the Canadian brokerage arms of U.S.-based firms. The business is part of Fidelity’s U.S.-based clearing organization, National Financial.
Competition across the region is sparse, with Penson Worldwide the only major clearing firm with offices in both countries. Fidelity has been making a point in expanding into the region. Fidelity Investments Canada ULC (“Fidelity Canada”) recently officially opened its new Montreal office after 12 years in Boston. The new office is home to members of Fidelity’s Team Canada, as well as its retail and institutional sales and servicing teams. As part of its expansion in Canada, Fidelity also announced portfolio manager transitions within its Team Canada.
Fidelity also said that Richard Ness will serve as acting CEO of Fidelity Clearing Canada and that it has already established correspondent clearing relationships with two Canadian broker/dealers, Integral Wealth Securities and execution specialist JitneyTrade.
“Based on a growing demand among our U.S. broker/dealer clients for a clearing provider to support their Canadian brokerage units, as well as an expanding opportunity to service Canadian broker/dealers, we saw a need to extend our services to this market,” said Richard N. Hart III, senior vice president, National Financial. “We have assembled a strong and experienced management team under Rick that we are confident can meet the distinct needs of the Canadian brokerage market.”
Based in Toronto, Fidelity Clearing Canada will offer brokerage firms back-office support such as trade execution, clearing and custody. In addition, the company will support a comprehensive platform of investment products, including mutual funds and individual securities, as well as sophisticated brokerage technology for firms and their brokers to help conduct and manage their business.
Ness has 25 years of experience in global financial services, including building and growing core brokerage operations for Canadian and U.S. financial institutions. He assumes his position for Fidelity Clearing Canada from Tactico, an international business consultancy with offices in Montreal, Toronto and Los Angeles. Prior to Tactico, Ness served as president and CEO of Penson Financial Services Canada.
“By leveraging the resources and scale of the Fidelity organization, we are well-positioned to provide premier financial services organizations with the tools and support they need to achieve enhance operational efficiencies and grow,” said Ness. “We are further encouraged by the fact that as we launch the business, two Canadian financial services firms, Integral Wealth Securities and JitneyTrade, have already converted their business to our platform.”
“For us, it was an unbeatable combination to have an agile, Canadian-managed clearing operation backed by the global resources of Fidelity Investments,” said John Gibson, CEO, Integral Wealth Services. “Fidelity Clearing Canada’s capabilities are vast and we believe our relationship with them will not only help reduce our costs but also help mitigate our risks and facilitate growth.”