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Jared Dillian
Traders Magazine Online News

Was it Worth It?

In this piece from 10th Man, author Jared Dillian discusses how the ETF revolution is less about ETFs and more about indexing; about how people have come to view stocks less as stocks and more as blobs of stocks.

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August 6, 2009

Madoff Wholesale Unit Sold

By Editorial Staff

Bernard L. Madoff Investment Securities lives on. The former wholesaling operation has reopened under the name of Surge Trading. Subject to approval by the Financial Industry Regulatory Authority, Surge will commence wholesale market-making operations from Madoff's former offices in New York's Lipstick Building.

"We are looking forward to quickly beginning the business of trading on behalf of our clients," Frank Petrilli, Surge Trading's chief executive and the former chief executive of TD Waterhouse, said in a statement. The firm was formerly known as Castor Pollux Securities and has filed with FINRA to expand its services to include market-making activities.

Castor Pollux paid $25.5 million for the remnants of Madoff's firm in auction held earlier this year which closed in June.

The firm is hiring market-making specialists for its trading, technology and compliance teams. It has also hired personnel from the former Madoff firm who supported that firm's market-making and proprietary trading businesses. This group includes sales traders and client services specialists, as well as technology, trading and operations experts.

Surge will use the market-making assets of the former Madoff firm, which include its proprietary trading platform.

Senior management at Surge also includes Darin Oliver, former CEO of Castor Pollux, who will become president of the firm, and Robert Mazzarella, who serves as the non-executive chairman. Mazzarella has 40 years of experience in the securities industry and was the former president of Fidelity Brokerage Services.

 

 

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