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Four of the six charges against former NYSE chairman Richard Grasso have been overturned regarding his $187.5 million compensation package. The final outcome?

Grasso will settle the case
NY State will not pursue the case
Grasso lost his reputation, regardless
Not Spitzer's worst decision but up there

Previous Polls

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Clearing Department

Industry News

New Stock Lending Exchange Takes Next Step

Lendex LLC, the nascent electronic securities lending exchange backed by former Securities and Exchange Commission chairman Harvey Pitt, has inked a deal with a key partner.

Articles from Traders Magazine

Small is Beautiful

Hedge funds managers using structured products and other exotic strategies have become toxic for small prime brokers. Small primes, sometimes referred to as "mini-primes," might have tallied some business with big hedge funds that had exotic strategies. But these days, that is no longer the case, after the credit crunch and the fall of Bear Stearns. This change in strategy speaks to the severity of the impact that illiquid securities can have on markets.

The Young Guns of Prime

Pershing and Fidelity, two recent prime brokerage entrants backed by deep-pocketed parent companies, hope securities lending will propel them among the elite primes. Still, these prime brokerage units-launched by financial services giants Fidelity Capital Services and BNY Mellon's Pershing-are competing with long-established, bigger firms like Bear Stearns and Goldman Sachs. "Fidelity, as an agency-only broker, could be an effective prime broker player," says Josh Galper, managing principal with the consultant Vodia Group.

Bear Stearns Focuses on Retail for Clearing Biz

While many other clearing firms are seeing more growth opportunities in institutional business (see CQ&D News Winter), Bear Stearns officials say they believe big growth will come on the retail side. They see selling turnkey investment advisory services to broker-dealers as one of the areas that will boom as more Americans retire and look for help. In a recent interview with CQ&D, Bear Stearns clearing executives Joe Triarsi and John Tyers the co-heads of Broker Dealer & Investment Advisory Services (BDIAS), explained where the clearing business is going.

Pershing's Mexican Interdealer Coup

Pershing recently won a mandate to clear for a Mexican interdealer broker after making efforts over the last few years to strengthen that niche clearing service-a win that provides the added benefit of displaying the clearer's cross-border expertise. The clearer announced in December that Enlace Int. S.A., a Mexican interdealer broker specializing in Mexican government bonds, had appointed Pershing as its principal clearing agent. Pershing said the move establishes it as the first provider of clearing-and- settlement services to the Mexican interdealer brokerage market.

Broadridge Brings on New Outsourcing Customers

Broadridge Financial Solutions is gaining traction with its outsourcing solution, signing two new clients over the last several months, including a startup focusing on institutional business. The offering allows clients to continue self-clearing but outsource most back-office tasks.

OneChicago Launches ETF Futures Listings

OneChicago, an electronic exchange specializing in single-stock and other securities futures, began listing in December futures on three major exchange-traded funds (ETFs). It is a move that it hopes will push clearing firms to begin clearing securities futures products. The exchange has faced an uphill battle since it opened its doors in November 2002, mainly because the vast majority of clearing firms have yet to retool their operations to clear the products in securities accounts. Securities futures can be placed in futures accounts as well as securities accounts, such as portfolio margin accounts, where they can be used to achieve significant margin reductions.