Execution
Services
Penson Financial Services Limited will provide
you with market access. Our powerful combination of technology and
market expertise results in fast reliable executions. With trading
desks in London, Dallas, Montreal and Toronto, the Penson Group
provides access to Canadian, US, and Global markets and supports
equity, options, futures, fixed income and foreign exchange trading.
Clearing and Settlement
Penson’s expertise, technology and
choice of business partners has introduced a clearing alternative
not previously available in the UK. In addition, our ability to
access the U.S. and Canadian clearing services of our sister firms
gives us a unique advantage in those markets, since we can guarantee
efficient and cost effective clearing. The Penson group companies
include membership of: CREST, LSE, NASD, SEC, CDS, DTC, CDCC, NSCC,
OCC, FUNDSERV, with International Equity and Bond settlements being
serviced in London via arrangements with local European agents and
global custodians.
Specifically Penson Financial Services Limited
can provide you with a range of services as follows:
Model A
As Clearer/ Settlement Agent we are responsible
for settlement of our Correspondent’s trades using their custodial
and banking facilities. Contract notes and confirms are issued in
the Correspondent’s name and stock and cash are moved under
delegated mandate. Title remains with the Correspondent firm and
assets and liabilities appear on the Correspondent’s Balance
Sheet. We enter into a Service Contract with our Correspondent under
which we provide a multi-currency books & records service incorporating
all the reports and information necessary to support operational
and regulatory reporting requirements.
Our Model A service can be supplemented by our Global Custody service.
Model B (Fully Disclosed)
Model B services are generally used in a
‘private client or retail’ environment. As Clearer we
adopt your trade and the associated settlement risk. Contract notes
and confirms are issued in Penson's name, with reference
to you as the introducing broker . Settlement is effected in
our name which is ‘given-up’ to the market at the time
of execution. Your clients assets and liabilities resulting from
the trades appear on Penson's Balance Sheet (as opposed
to yours as 'broker'). A tri-party Agreement will be entered into
between Penson, yourselves, and your client.
CREST Sponsored Membership
As a registered CREST User / Sponsor we
are able to provide you with our Crest Sponsored membership service.
This is available to those companies who either take our full Model
A books and records service or those that have their own systems
but require access to the CREST settlement system and settlement
support. As one of our Sponsored Members you will have your own
Cash Memorandum Account (CMA) linked to one of the CREST designated
clearing banks. Each firm has its own dematerialised stock accounts
thus allowing the operation of a designated or non-designated nominee
service. A suite of intraday reports will be tailored to suit your
needs. The reports will include matching/settlement status report,
stamp duty liability schedule, other market claims report –
dividends, corporate actions, etc. The service also includes our
‘automatic splitting’ facility which maximises your
cash flow by ensuring same day turnaround of partial deliveries
inward. This is especially relevant to high volume trading firms.
Custody and Administration
Our Custody and Administration service
utilises our comprehensive multi currency back-office and custody
system which forms the primary books and records for basic functions
and management reporting. We also provide a full administration
function including deposits/withdrawals, transfers, registered account
transactions and corporate actions. The system’s functionality
is enhanced with our customised reporting function, which provides
user defined account and trade management reports. Web access applications
provide account access, unlimited transaction history, data export
to external programs, email reports, ad-hoc reports and queries.
This can be accessed 24 hours a day.
As custodian for your securities, the foundation of our financial
strength is our parent Penson Worldwide Inc., which is capitalized
through a Texas life insurance group with assets in excess of $200
million and equity capital of over $100 million. Penson also carries
supplemental insurance cover at no charge to our customers.
We are regulated by the Financial Services Authority and members
of the London Stock Exchange and the Association of Private Client
Investment Managers (APCIMS). Our affiliation with these agencies
affords you the highest level of integrity, protection and service.
New Generation Wealth
Management
and Portfolio Modelling Service
This enhanced quality product offering will provide
those investment houses who manage client and institutional funds
with the necessary tools to manage, analyse, monitor and re-balance
their clients portfolios. Alerts being given top the fund manager
as a result of any change in investment circumstances.
New Generation Wealth Management covers:
- Portfolio Management including performance
measurement and modelling
- 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 the correspondent
and their clients
This new comprehensive
front-to-back service will provide one of the most efficient and
cost effective solutions to all areas of fund management.
Compliance
and Reporting
We believe our customers
know the best way to monitor their business. We generate customised
reports, summaries, and daily and monthly production of regulatory
and management information enabling our Correspondents to monitor
and control their risks.
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