One New Jersey-based, market maker and global broker-dealer is upping the ante and expanding its horizons. And it is doing so while most of the Street’s brokers are either downsizing or downsized.
How can that be?
As the bigger brokers have been steadily been shedding workers in order to adjust to the new paradigm of lower commissions, electronification of services and operating with leaner staffs, Vandham Securities, is expanding its footprint as a market center, broadening its institutional product offering and staff.
“We continue to expand our products based upon the needs of our customers,” Vandham’s leadership told Traders in an email. “As the street continues to downsize, there are significant gaps developing in product offerings to our clients. Most notably the gap in experience and service has proven to us that product knowledge, trust and relationship are still critical components in today’s global execution environment.”
At the nexus of the Woodcliff Lake, N.J.-based firm’s is the hiring of several new professionals who are responsible for igniting interest in the firm’s product offerings and improved technology. The firm has recently brought on five new hires, including industry veteran Peter Cocuzza who will spearhead the broker’s business development plan. Cocuzza, a 30-year veteran of the trading markets, will be responsible for expanding and developing senior client relationships in both equities and fixed income.
Prior to Vandham, he was with Stone Toro Asset Management in Princeton, N.J., as a vice president of business development. Cocuzza has also been an equity trader at Oppenheimer Funds, where he spent nine years, and at Mitchell Hutchins/PaineWebber, where he spent 20 years on both the buyside and sellside.
Joining Cocuzza in business development in the firm’s new Marlboro, N.J. office is Jeff Maier.
John Polizzano came aboard to focus on global sales.
David Cooperman joined with a focus on international trading and sales trader Steven Walley came aboard to bulk up the U.S. trading effort.
“Pete (Cocuzza) and Maier are part of the firm’s expansion of its client business,” said Seth Weber, who heads up the firm’s electronic trading business and the Marlboro office. “We’ve always had a strong product offering but never really had a sales force to get the word out – now we do.”
Cocuzza and Co. bring Vandham’s sales force to five and they are currently hitting the bricks to get the word out about Vandham’s business. And while Vandham offers its customers vendor -contracted but uniquely customized algorithms and a full U.S. electronic offering, there are other initiatives that are targeted at bringing in more business.
First, the firm is growing its international trading desk, where Cooperman is stationed. Weber told Traders that the desk s poised for more staff growth, as well as increasing its hours of operation to 24 hours a day. The desk has upgraded technology with a new global order management system, program trading offering and algos designed for international usage. There also is global portfolio trading group to round out the desk.
Weber also told Traders that Vandham has also entered the capital introduction business. Vandham will assist hedge fund client raise capital by acting as an intermediary between its institutional clients and the hedgies.
“We have several clients who have access to assets and we want to bring those assets to the hedge funds,” Weber told Traders.
Weber also noted that Vandham has revamped its technology infrastructure also. The firm outsources its algorithms from several vendors but adds its own custom touches, making them more bespoke to its needs. As Weber noted, it’s cheaper for the broker to outsource than build from scratch internally.
The firm has also transitioned itself onto a new order management system, selecting SunGard from Fidessa and continues to run ITG’s Triton execution management system. It has also streamlined its FIX protocol infrastructure, whittling down its provider list to just one, EZX, from several. By using EZX, Vandham is able to trade directly from its own algorithm suite or strategy engine, proprietary trading screens and Excel spreadsheets into its OMS.
But it is not all about trading at Vandham either, Weber said. The firm is a Service Disabled Veterans Owned Business broker and is looking to give back to the servicemen and women who serve in the U.S. armed forces. It has created an alliance with the Bob Woodruff Foundation. The mission of the foundation is to ensure injured veterans and their families are thriving long after they return home by finding and funding innovative programs in communities where veterans, their families and caregivers live and work. Vandham will jointly campaign with the Woodruff Foundation and make a daily continuous contribution to the group. Contribution amounts will be based on Vandham’s execution business.
