Local firm FinClear, the only third-party equities clearer to be admitted to the ASX in two years, sees plenty of scope to win customers in the trading execution, clearing and settlement market.
FinClear managing director David Ferrall told The Australian Financial Review he was confident about the new company’s prospects as global players such as Pershing retreated from parts of the Australian market.
Stockbrokers and trading firms wanted the privately held company to find a big bank partner and also display a track record in equities before they considered becoming customers, which prompted FinClear to partner with BNP Paribas for wholesale clearing, banking and custody services and opened the door to being able to service the institutional trading market as well as the retail industry, the latter of which it does in-house.
FinClear also acquired Lonsec’s stockbroking business in late 2016, giving it a foothold in the local market. The Lonsec business has been rebranded FinEx and is the parent entity’s first clearing customer.