Credit Suisse First Boston clearing subsidiary Pershing has reached an agreement to deliver clearing services to the Deutsche Bank Alex. Brown private client division.
Under a separate agreement, Pershing will work with Deutsche Bank Securities to acquire the introducing broker clients of its retail correspondent clearing business. Deutsche Bank Securities will continue to deliver clearing services to institutional clients through its Equity Prime Services unit.
Under these agreements, Pershing will make its securities processing services, and technology solutions available to approximately 30 of Deutsche Bank Securities' retail correspondent clearing customers and the retail investors they support as well as to Deutsche Bank Alex. Brown's investment representatives.
With the conversion of this new business, Pershing claims to provide services to nearly 800 financial institutions, adding to the 4.2 million retail customers and $410 billion in client assets the firm already holds in custody on behalf of its introducing broker-dealer customers.
The UK market for outsourced back office clearing services has been shaken up by the recent arrival of BNY Securities Ltd, a Bank of New York subsdiary.
Despite the arrival of fresh competition, Jeff Peek, CSFB's vice chairman and head of the financial services division insists that Pershing remains a key component of the company's plans. "We are committed to extending its (Pershing's) leadership position at a time that is particularly opportune for outsourcing in the financial services industry," he says.