Institutional broker Code Securities has chosen Penson Financial Services to provide it with Model B (fully-disclosed) clearing services, in European equities.
Code Securities – which provides advisory, fundraising and stock broking services for companies and investors in the European life sciences and medical technology sectors – was authorised as a broker by the Financial Services Authority (FSA) in the UK in September 2004.
“Code Securities selected Penson because of the strength of its commitment to service and delivery,” says Phil Dixon, finance director, Code Securities Ltd. “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.”
Under the terms of its agreement, Penson will clear and settle Code trades under the Penson name via its back-office and custody systems. As the clearer, Penson adopts the trade and the associated settlement risk.
Sharron Davey, head of sales and marketing, Penson Financial Services Ltd, says Code Securities was the ninth new client 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,” she says. “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.”