JonesTrading has expanded into the advisor services business with the hiring of an industry veteran. The move opens up a new type of account that previously did not transact with the block-trading firm.
Seth Michaels, a veteran of more than 20 years in clearing and prime brokerage, joins JonesTrading as managing director to head its new advisor services business in New York. Michaels was most recently at Barclays, where he ran its high net worth client financing business.
The new business line introduces a large number of accounts and new opportunities for the third-market firm, according to Packy Jones, company chief executive. The new list of clients includes high net worth individuals, professional traders and family offices, he said.
Michaels will introduce roughly 55 accounts to the firm, and less than a handful currently trade with JonesTrading, Jones said. The new line of business opens up opportunities to add clients, and with that, increase the level of commissions with that segment, he added.
"It was a no-brainer for us, because his expertise is totally different than what we do," Jones said. "We felt it would be an opportunity to get involved with these accounts. We want to give them more reasons to do business with us," Jones added.
Prior to Barclays, Michaels managed Neuberger Berman Clearing Services. Michaels’ relationship with JonesTrading dates back to his days at Neuberger, where Jones cleared its trades.
CEO Jones said the firm has successfully used this formula off adding on a business before–and then growing it. He cited its Canadian and options businesses as two prime examples.
