Mesirow Financials clearing division, which only has some 50 correspondents, has been sold to RBC Correspondent Services, RBC officials confirmed.
They told Traders Magazine that the purchase makes sense for several reasons. Mesirow found clearing a difficult business and wants to focus on other areas, plus RBC has similar clients.
Culturally, this is a perfect fit, said Craig Gordon, director of RBC Correspondent Services. He added that Mesirow has a small amount of institutional business and is primarily a retail-focused firm.
With the addition of Mesirows business, Gordon said RBC Correspondent Services will have some 250 clients.
Industry observers have said that clearing brokerages with fewer than 100 correspondents generally have difficulty surviving today. That is, unless the correspondents are recording huge amounts of business.
Gordon said that RBC continues to be committed to adding business. Recently, RBC Correspondent Services also purchased J.P. Morgans custody and registered investment advisory unit.