Penson Worldwide Changes Name

London, 1 October 2004: Penson Worldwide Settlements is changing its name to:

Penson Financial Services Limited

Penson Worldwide Moves to New Office

London, 21 June 2004: Penson is moving to a new office. Our new address will be:

Penson Worldwide Settlements Ltd.
2nd Floor
One Oliver's Yard
London
EC1Y 1HQ United Kingdom

Phone number: +44 (0) 20 7549 1500
Fax number: +44 (0) 20 7336 8157

Penson Worldwide Launches Industry-First eTrading Solution Combining a Hosted OMS with Direct Market Access, Backed by Established Clearing, Settlement and Custody Service

Low-Cost Multi-Market, Multi-Exchange, Multi-Instrument from Single Front-End

London, 2 February 2004: Penson Worldwide, a leading provider of clearing, custody, and settlement services in North America & Europe, today extended its European offering and launched an electronic execution service to meet the growing needs of its European broker/dealer and asset management client base. Penson's 'one-stop shop' execution, clearing, custody and settlement service will support its clients' trading activities via their own Exchange memberships and provide electronic direct market access trading of equities, derivatives and CFDs to all other European and North American markets. The addition of this low-cost, hosted Order Management Solution (OMS) and electronic Direct Market Access to Penson's more traditional business areas of clearing, settlement and custody will provide UK, Irish and European broker/dealers and private client asset managers with an end-to-end e-trading solution.

Chris Gregory, Director of Execution Services, Penson Worldwide, comments: "2004 marks a new phase in Penson's development as we expand our services to accomodate the front and middle office. We wanted to provide our global client base with a 'one stop shop' trading solution that simplifies the processes within the increasingly sophisticated worlds of agency trading, as well as risk arbitrage, hedge fund and programme trading, and further improving Straight-Through Processing. Penson's end-to-end eTrading platform will do just that."

The project, providing a multi-market, multi-instrument trading system, Exchange-hub connectivity and electronic Direct Market Access brokerage, all backed by Penson's established comprehensive settlement, clearing and custody service covering all European Equities, Exchange-traded Derivatives, and CFD Swaps, is due for completion by the end of Q1 2004.

The Exchange-hub connectivity for Penson's Execution Service is provided in partnership with RTS Realtime Systems.

The trading will be supported in two ways:

1. Exchange connectivity trading software enables clients to trade under their own membership against Exchanges and Retail Service Providers (RSPs)
2. Multi-market, multi-instrument, electronic Direct Market Access through Penson

The trading software is available in three levels:

1. Professional Level II client application, with full OMS, risk management and trading functionality, with hosted server architecture;
2. Browser-based version of the full trading functionality;
3. White labeled client order entry browser.

Penson's International Execution Service, backed by a single, multi-asset clearing, settlement and margin account from Penson, will also deliver significant cost savings to its financial institution client base.

Gregory adds: "Financial institutions worldwide are increasingly experiencing hikes in the fixed costs of maintaining their own operational infrastructure. This factor, combined with growing regulatory compliance demands and the need to constantly evolve to maintain a competitive edge, has paved the way to an increase in demand for quality, dependable and low-cost outsourced alternatives. We are already seeing the demand for these services among our existing and prospective customer base and we now look forward to reaching out to the wider market."

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Press Enquiries To:  Cre8 Results

Notes to Editors - Penson Background Information

1. Penson provides clearing, settlement and custody services to broker dealers and private client asset managers in US, Canada and UK
2. In the UK, historically provide: outsourced back-office ~ Model A Crest clearing and Model B Crest clearing.
3. Penson is one of the top three largest clearers in each of its home markets - globally it handles between 500,000 and 700,000 trades a day and hold over $1.75 bn customer assets in custody.
4. Bank of New York (BONY) take over of Pershing (about 1 year ago) has clarified Penson as the only viable alternative provider of outsourced (backoffice) services to stockbrokers and private client asset managers in the UK.

About Penson Worldwide:   www.penson.com

Penson Worldwide, Inc. is the holding company for Penson Financial Services, Inc., Penson Worldwide Settlements, Ltd., Penson Financial Services Canada, Inc., and Penson Financial Futures, Inc. The Penson Worldwide group of companies provides clearing, custody, and settlement services in the United States, Canada, the United Kingdom, and Europe for broker/dealers trading in securities and financial futures, including single stock futures, and fixed income products. Penson Financial Services, Inc., headquartered in Dallas, Texas, has served the clearing needs of all types of broker/dealers since 1995.

Penson Financial Services, Inc. is a member of the Chicago Stock Exchange, National Association of Securities Dealers, Inc. and SIPC. Penson Financial Services Canada, Inc. is a participating organization with the Toronto Stock Exchange, the Montreal Exchange, the Canadian Venture Exchange, is regulated by the Investment Dealers Association of Canada, and is a member of the CIPF. Penson Worldwide Settlements, Ltd. is a member of the London Stock Exchange and is regulated by the Financial Services Authority. Penson Financial Futures is a Futures Clearing Merchant member of the National Futures Association.

About RTS Realtime Systems Group:   www.rtsgroup.net

RTS Realtime Systems Group is a market leader in electronic trading software for futures, options and equity traders. In business since 1992 as a privately held and profitable company, RTS has local sales and support offices in the financial centres of Amsterdam, Chicago, Frankfurt, London, New York, Paris, Sydney, and a logo partner in Athens.

As one of the pioneers in the industry, RTS has developed a suite of products for market makers, proprietary traders, brokers, and day traders, including the RTD Quote MachineŽ, the RTD Electronic EyeŽ and its basket trading system. By offering an integrated trading, risk management and pre-execution limit control system, the RTD software products provide a comprehensive solution for trading on different exchanges worldwide from a single window. Trading, speed, reliability, a proven track record and world-class trading functionality have made RTD an outstanding product in the industry.

Clearing Broker, Penson Worldwide, Appoints Chris Gregory as Director of Execution Services

Penson Worldwide Announces One-Stop Shop Clearing & Execution Service for European Brokers

London, 9 December 2003: Penson Worldwide, a leading provider of clearing, custody, and settlement services in North America & Europe, today announced its appointment of Chris Gregory, Director of Execution Services. Based from Penson Worldwide's Finsbury Square offices, Gregory will be responsible for extending Penson's electronic execution service to meet the growing needs of its European brokers.

Gregory's appointment indicates a strategic move for the clearing broker. Penson already offers its North American clients a 'one-stop shop' clearing and execution service. The company has now committed to extending these services to its European customer base.

Gregory comments: "The potential we have within Penson, including the service's front-end functionality and our existing North American trading capabilities, is superb. It's now time to release that potential to the European market through a cost-effective, best-of-breed execution and clearing service."

Gregory joins Penson Worldwide from SunGard Global Execution Services (SGES) where as Managing Director he established the company and was instrumental in building, launching and running SunGard's electronic, direct-access broker service. Part of SunGard Data Systems, SGES was a London Stock Exchange, Deutsche Borse, Euronext and Stockholmsborsen member firm, trading on all major European and US Exchanges. Prior to joining SGES, Gregory was Head of US Member Services, Tradepoint Stock Exchange (The precursor to Virt-X), New York, responsible for launching electronic trading in UK equities on Tradepoint for US institutional investors, broker dealers and hedge funds.

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Press Enquiries To:  Cre8 Results

Notes to Editors - Penson Background Information

1. Penson provides clearing, settlement and custody services to broker dealers and private client asset managers in US, Canada and UK
2. In the UK, historically provide: outsourced back-office ~ Model A Crest clearing and Model B Crest clearing.
3. Penson is one of the top three largest clearers in each of its home markets - globally it handles between 500,000 and 700,000 trades a day and hold over $1.75 bn customer assets in custody.
4. Bank of New York (BONY) take over of Pershing (about 1 year ago) has clarified Penson as the only viable alternative provider of outsourced (backoffice) services to stockbrokers and private client asset managers in the UK.

About Penson Worldwide:   www.penson.com

Penson Worldwide, Inc. is the holding company for Penson Financial Services, Inc., Penson Worldwide Settlements, Ltd., Penson Financial Services Canada, Inc., and Penson Financial Futures, Inc. The Penson Worldwide group of companies provides clearing, custody, and settlement services in the United States, Canada, the United Kingdom, and Europe for broker/dealers trading in securities and financial futures, including single stock futures, and fixed income products. Penson Financial Services, Inc., headquartered in Dallas, Texas, has served the clearing needs of all types of broker/dealers since 1995.

Penson Financial Services, Inc. is a member of the Chicago Stock Exchange, National Association of Securities Dealers, Inc. and SIPC. Penson Financial Services Canada, Inc. is a participating organization with the Toronto Stock Exchange, the Montreal Exchange, the Canadian Venture Exchange, is regulated by the Investment Dealers Association of Canada, and is a member of the CIPF. Penson Worldwide Settlements, Ltd. is a member of the London Stock Exchange and is regulated by the Financial Services Authority. Penson Financial Futures is a Futures Clearing Merchant member of the National Futures Association.

Penson announces extension to their UK clearing services with Business Architects collaboration.

London, October 16, 2002: Penson Worldwide Settlements Limited, a subsidiary of the Dallas-based Penson Worldwide Inc., have signed an agreement with Business Architects International, one of the industry’s leading vendors of front office portfolio management software to provide portfolio measurement, modeling, order management and quality client reporting as additional services to their current execution, clearing, settlement and global custody services.

This enhanced delivery offering is aimed at the UK retail investment and wealth management industry allowing fund managers, stockbrokers, solicitors and IFAs to manage their clients investment assets more efficiently and cost effectively. Penson can now provide an outsourced front to back office, full service capability for both retail and institutional investment managers.

This “New Generation” wealth management service delivery covers:

Portfolio management including performance measurement and modeling
Full client valuation and Capital Gains Tax reporting
Order management with rebalancing and bulk ordering
Order routing and execution
Trade confirmation and matching
Full cash and stock management
Online web access for both correspondents and clients

PWSL currently offer a Model A service which ranges from full back office outsourcing down to individual CREST sponsored membership. This “New Generation” delivery Model B (Fully Disclosed) service is the culmination of a two-year development program, which has drawn on the group’s market experience as a leading US processor of over 750,000 daily trades on the NYSE/NASDAQ and the integration of their settlement systems together with “Best of Class” European vendors of front office solutions, direct market execution links and specialist Capital Gains Tax providers.

David Wilson, Business Architects UK Director comments, “This is the new generation of end to end investment management, an affordable and lower cost option offering more services than any existing combined internal front to back office system or third party administrator.”

The PWSL offering is seen as a competitor to typical retail and private banking back office systems such as Consort, Exact, JHC and Globus. Whilst in the front office Pulse, Wealth Management Software and Advent and Triple A are competitors. The outsource competitors are Pershing’s G2 and Nucleus, and the recently announced BNY/Tilney offering.

According to Dan Son, President of Penson Worldwide, Inc., “We decided to look at the UK market with a fresh approach and asked fund managers what they really wanted. Clearly, the feedback indicated more sophisticated portfolio measurement and execution at the front. This is a collaboration of best of class financial component vendors in the industry joining forces in the belief that the incumbent service providers have been complacent for too long.”

The new service will be officially launched in January 2003.

About Penson Worldwide

Penson Worldwide, Inc. is the holding company for Penson Financial Services, Inc., Penson Worldwide Settlements, Ltd., Penson Financial Services Canada, Inc., and Penson Financial Futures, Inc. The Penson Worldwide group of companies provides clearing, custody, and settlement services in the United States, Canada, the United Kingdom, and Europe for broker/dealers trading in securities and financial futures, including single stock futures, which are expected to make their debut in the U.S. markets in the near future. Penson Financial Services, Inc., headquartered in Dallas, Texas, has served the clearing needs of all types of broker/dealers since 1995.

The firm is particularly well equipped to serve the needs of online brokers, direct access broker/dealers, and firms that serve the active trading market segment. Penson’s competitive advantages include its use of leading-edge technology and innovation, and its customer service orientation.

Penson Financial Services, Inc. is a member of the Chicago Stock Exchange, National Association of Securities Dealers, Inc. and SIPC. Penson Financial Services Canada, Inc. is a participating organization with the Toronto Stock Exchange, the Montreal Exchange, the Canadian Venture Exchange, is regulated by the Investment Dealers Association of Canada, and is a member of the CIPF. Penson Worldwide Settlements, Ltd. is a member of the London Stock Exchange and is regulated by the Financial Services Authority. Penson Financial Futures is a Futures Clearing Merchant member of the National Futures Association.

About Business Architects

Business Architects International is a leading European software company focused on solutions for the financial marketplace.

The company offers private banks and investment management companies a wide range of customer specific business applications for asset management. Business Architects combines financial know-how with technology expertise. All solutions are based on best-practice business models and component technology, enabling our customers to adapt rapidly to, and move with, changing business conditions and generating a significant competitive edge.

The range of products includes eXimius, a front & mid office investment software product combining portfolio management & CRM in a unified package.

Business Architects was founded in December 1997 and has offices in Brussels, Amsterdam, Luxembourg, Paris, Frankfurt, London and Dublin. The company has 120 employees. Customers include: Achmea, AGF, Axa-Degroof, BBL, Centea, Credimo, Crédit Foncier de France, Demetris, Dexia, Europay International, F. van Lanschot Bankiers, Fortis, Gerling Namur, ING, Kas Bank, Rabobank, and Realbank.

Penson Worldwide Settlements, Ltd. Licenses X-Trader Application from MBA Systems.

X-Trader is a comprehensive order management system that enables brokers and investment managers to capture, route and execute orders electronically.

London, December 2: Penson Worldwide Settlements, Ltd. ("Penson") and MBA Systems have signed an agreement for Penson to license MBA Systems' X-Trader application. X-Trader will become an integral part of the comprehensive services that Penson provides to European brokers. These services include the provision of execution, clearing, settlement, and custody, which Penson supplies on an outsourced basis.

X-Trader enables Penson and its customers to capture, route and execute orders electronically, employing true straight through processing techniques. It facilitates the execution of transactions without the need for manual intervention and ensures that orders are filled on a "best execution" basis. It allows Penson to access a full range of execution venues, including all major Retail Service Providers (RSPs) and SETS.

"Of all the suppliers we considered, MBA had the most impressive track record in developing and supporting electronic trading systems for the securities market," says Daniel Son, President of Penson Worldwide, Inc., "Our agreement with them means that we will be able to offer our customers excellent market connectivity to key RSPs combined with the very best "best execution" and straight through processing facilities."

Notes to editor:

About Penson Worldwide

Penson Worldwide, Inc. is the holding company for Penson Financial Services, Inc., Penson Worldwide Settlements, Ltd., Penson Financial Services Canada, Inc., and Penson Financial Futures, Inc, among other companies. The Penson Worldwide group of companies provides clearing, custody, and settlement services in the United States, Canada, the United Kingdom, and Europe for broker/dealers trading in securities and financial futures, including single stock futures.

The firm is particularly well equipped to serve the needs of online brokers, direct access broker/dealers, and firms that serve the active trading market segment. Penson's competitive advantages include its use of leading-edge technology and innovation, as well as its focus on customer service.

Penson Financial Services, Inc. is a member of the Chicago Stock Exchange, NASD, Inc., the Options Clearing Corp. and SIPC. Penson Financial Services Canada, Inc. is a participating organization with the Toronto Stock Exchange, the Montreal Exchange, the Canadian Venture Exchange, is regulated by the Investment Dealers Association of Canada, and is a member of the CIPF. Penson Worldwide Settlements, Ltd. is a member of the London Stock Exchange and is regulated by the Financial Services Authority. Penson Financial Futures, Inc. is a non-clearing Futures Commission Merchant member of the National Futures Association, and is a member of Nasdaq Liffe Markets (NQLX). Penson Financial Services, Inc. and Penson Financial Futures, Inc. are notice registered to trade Single Stock Futures and Narrow-Based Indices.

About MBA Systems

MBA Systems, formed in 1987, is an established supplier of trading and information systems to the UK securities industry. The company supplies and supports online investment applications that enable its clients to trade electronically and distribute data and content to a wide range of private client stockbrokers and investment management firms. It supplies its solutions either standalone or as a managed service on a facilities management basis from its data centre in Winchester, United Kingdom.

Penson Targets U.K. Clearing Biz

by Michael Sisk Correspondent

For years, when it came to clearing trades in the United Kingdom, Pershing Ltd. was the only game in town-but the competition is heating up. BNY Clearing Services International jumped into the market last year, and now a relatively small outfit based in Dallas, Penson Worldwide, plans to go head to head with two of the industry's goliaths. Penson has inked a raft of agreements over the past two months, which President Daniel Son said is the culmination of a multiyear process following its acquisition of a London-based model-A clearer, Worldwide Settlements, to enhance systems capabilities. In early November, Penson received approval from the FSA in London to become a full-service model-B clearing firm, which is more akin to the U.S. model and requires capital and the taking on of liabilities.

"We've waited to have these superior systems in place before making these announcements," Son said. "Now we want to capture some market share." Son explains that Penson was prompted to buy Worldwide Settlement three years ago when its U.S. correspondents-it currently clears 600,000 to 750,000 trades per day in the United States for more than 100 correspondents-expressed a desire to execute in European and Canadian markets. (At about the same time that Penson bought Worldwide Settlements, it bought a Canadian firm, now known Penson Financial Services Canada, which is the third-largest clearer in Canada, handling about 9,000 trades per day.) "We're pretty unique" to be in Europe, Son said. "We've got a relatively small capital base." Unlike Pershing and BNY, Penson's 30-person, multicurrency London operation will focus only on clearing trades for customers of U.S.- and U.K.-based firms. Right now, Penson has about 20 clients in London. "We don't see ourselves clearing German transactions for German citizens," Son said. "It's impractical to compete in the individual jurisdictions."

While taking on Pershing and BNY in any jurisdiction might at first blanch seem brazen-if not ill-conceived-competitors and analysts agree that European clearing stands to grow substantially over the next 10 years; those companies willing to make an investment now in a market with relatively few competitors stand to benefit. Keep in mind, said Robert Iati, research director at TowerGroup, while there are now just three firms in the United Kingdom vying for this business, the U.S. has more than 100 clearing firms. Also, he said, "there will be less and less self-clearing in Europe; firms will be looking to a third party."

The list of Penson alliances announced this fall has certainly caught the attention of some in the industry. In October, Penson struck an agreement with Business Architects International to add portfolio measurement and modeling, order management and client reporting to the execution, clearing, settlement and global custody service offered by BAI, with the goal of offering full front-to-back office outsourcing by 2003. On Nov. 21, Penson announced its selection of SunGard Securities Processing's STN Settlements solution for its London operation. STN Settlements is a clearance and settlement service that connects market participants' depositories and clearing institutions, including Euroclear and Swift. STN links to Sun's Phase3 multicurrency system to provide straight-through processing, which Penson has used since 1995. "With the Swift and Euroclear interfaces contained in STN Settlements, we will be able to better handle the many settlement rules in each country," said Mark Fawver, VP of international clearing and settlement at Penson Financial Services. Most recently, Penson earlier this month signed a licensing agreement with MBA Systems' order management application, X-Trader, which Son describes as "the last piece of the puzzle." X-Trader enables Penson and its customers to capture, route and execute orders electronically, employing straight-through processing techniques. It facilitates the execution of transactions without the need for manual intervention and ensures that orders are filled on a best-execution basis. It allows Penson to access a full range of execution venues, including all six major retail service providers (RSPs) and the London Stock Exchange Sets platform. "MBA was the best choice for us," Son said. "The compatibility of FIXML's market access, combined with Penson's use of Swift, allowed us a high rate of straight-through processing."

Ron Morgan, CEO of Pershing Ltd, which is based in London, said it's no wonder that Penson is making a U.K. move, given the tremendous growth potential in Europe. Even though the markets are obviously in a funk, he sees the equity culture growing significantly in the long run. "The retail market has greatly increased in size since 1990 [the year Pershing opened its doors in London]," he said. "It's now eight times the size. But it's still small compared to where it should be." Europe is still a nascent equity culture that will slowly gather steam, Morgan said, drawing in more and more of the 400 million people in the European Union-about 1.5 times the size of the U.S. population. (Sources estimated the number of correspondent broker-dealers in the EU to be around 1,200 to 1,500). Helping this equity culture to gel will be institutions that must fund the long-term liabilities of their pension funds with stocks, and the fact that countries of the E.U. are working to promote cross-border trades by easing tax consequences. The equity culture will benefit further if the U.K. adopts the euro and if cross-border institutions that provide the equity infrastructure in Europe continue to merge-such as Euroclear and Crest. Given all these developments, Morgan said he wouldn't expect London to remain a one-clearer town. "They're trying to ruin my paradise," Morgan jokes, "but we welcome it. They've just started, so I haven't run into them yet, but I expect to. We'll have to wait and see how it plays out-it's still the early days." Iati said Penson's moves are smart, and clearly aimed at distinguishing itself in a crowded U.S. field. "What they are trying to do is separate themselves in some way. Penson is trying to compete-if not with the big boys-then [at least] separate themselves from the midsized firms." Such European positioning could also make the firm an attractive acquisition candidate down the road, Iati said.

Penson's biggest challenge, Iati speculates, will be establishing name recognition and relationships considering the firm is not particularly well known even in the states. "You've got to prove yourself," Iati said. This at a time when a major bigger competitor, namely BNY, is pushing to establish itself. "BNY sees growth in Europe, and London is a key market to be in and is a launching pad for Europe," Frank J. Colella, VP and director of marketing in BNY Clearing's international division, told Securities Industry News supplement Clearing Quarterly & Directory earlier this year. The firm has spent 2002 rolling out new technologies-Gloss from Automatic Data Processing-and pursuing full membership in the central securities depositories of the United Kingdom, French and Dutch markets, to complement membership in the German and Swiss markets. BNY's stated goal earlier this year was to double the number of clients to 20 or so by the end of 2002. Given Pershing's well-established presence in the United Kingdom, combined with the aggressive moves of BNY-which at least enjoys some name recognition and deep pockets-makes Penson developing its own name recognition all the more critical. Son concurs with Iati that this is the major issue facing the firm. "Name recognition is the biggest challenge-competing with big international players," he said. "We're becoming better known, but it's still a challenge." Penson's trump card, he said, is "customer service and technology." For example, Penson has a desktop integrated trading solution called OmniPro-targeted at professional traders-which it will roll out to Europe in 2003. The Penson model, according to Son, "has worked in the United States and Canada, and it can work in Europe."

© 2000-2002 Penson Financial Services Limited. All rights reserved.