Saturday, 27 August 2016
Last updated 11 hours ago
Nov 21 2006 | 10:43am ET
New York hedge fund and proprietary trading firm Schonfeld Securities has agreed to sell its in-house clearing business to Dallas-based Penson Worldwide.
Penson, which provides execution, clearing, settlement and custody services to securities firm, will acquire the Schonfeld business on an earn-out basis, with five annual payments based on net income from the acquired clearing operation. The first payment, almost $25 million in Penson stock, is to be made at the beginning of the year. The deal is expected to close by the end of the first quarter.
Schonfeld and the six firms it cleared trades for have signed long-term deals to keep their clearing business with Penson.