Fidelity looks north, expands clearing biz into Canada
Fidelity Investments said this morning it is expanding its clearing business north of the border into Canada, with the intention of serving U.S. broker-dealers looking for a toehold in the market, while also targeting Canadian broker-dealers.
Fidelity Investments said this morning it is expanding its clearing business north of the border into Canada, with the intention of serving U.S. broker-dealers looking for a toehold in the market, while also targeting Canadian broker-dealers.
U.S. clearing firms don’t have much reach in the Canadian market of roughly 200 broker-dealers that use clearing firms. Penson Worldwide Inc. performs clearing operations for broker-dealers there, while broker-dealers with reps in Canada —such as Raymond James & Associates Inc., and Edward D. Jones & Co. LP — clear and hold assets in custody for those advisers.
The new group, called Fidelity Clearing Canada ULC, was “set up for U.S. broker-dealers who have or want offices in Canada,” said Richard Hart, a senior vice president for National Financial Services LLC, Fidelity’s clearing arm.
Fidelity has two Canadian broker-dealers as clearing clients: Integral Wealth Securities Ltd. and execution specialist JitneyTrade.
Fidelity, which will offer back-office support, such as trade execution clearing and custody, has hired Richard Ness, a veteran of Penson in Canada but most recently a consultant with Tactico Inc., as acting CEO of Fidelity Clearing Canada.
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