Hedge Fund Schonfeld Sells Clearing Biz

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.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...