KANSAS CITY, Mo., April 28, 2014 /PRNewswire/ -- DST, a leading provider of servicing solutions to the asset management, brokerage, retirement, and healthcare markets, today announced the launch of its new correspondent clearing business designed specifically for retail independent broker-dealers.
DST's clearing services platform will leverage the company's core competency in technology processing along with expertise in traditional brokerage business. DST, a major force in the financial services industry for more than 45 years, is the world's largest provider of third-party mutual fund recordkeeping services.
The clearing services will be formally introduced at this week's SIFMA Operations Conference in Boca Raton.
Industry veteran Craig Gordon has joined DST to lead the new clearing business efforts. As Head of Clearing, Gordon, with more than 27 years' experience in the industry, looks toward growing the clearing platform to help customers keep up with increased regulations, complex investment vehicles, and a rapidly evolving technology.
"Our end goal is to be recognized as the industry leader in providing full-service clearing through a scalable and efficient platform," says Gordon. "I think we have a real opportunity to quickly transform the clearing services model into one that actually helps broker-dealers grow their business."
In addition to providing traditional clearing services like trade execution, settlement, and custody, the clearing platform will integrate with other DST solutions like electronic account onboarding, consolidated reporting, compliance and surveillance, workflow automation, and electronic and printed customer communications.
"With DST's core competencies in technology and processing, we're prepared to re-invent clearing for a modern world," says Stuart Bowers, President of DST Market Services. "I believe our strategic advantage positions us to better serve broker-dealers working to service their clients."
According to a July 15, 2012 report from InvestmentNews, more than 90% of FINRA member broker-dealers that conduct general securities business do so through a clearing firm. Of these, more than 2,000 are estimated to be retail independent broker-dealers. According to Gordon, consolidation has already diminished clearing choices for these firms.
"Over the last 15 years, a good number of large full-service brokerage firms have exited the clearing business altogether, mostly because technology and processing efficiency were not their focus or competency," says Gordon. "I can't imagine a firm in better position to seize on that opportunity than DST."
DST's clearing services will be offered through DST Market Services, LLC, a wholly owned subsidiary of DST Systems, Inc. and member of FINRA and SIPC. In addition to offering full clearing, custody and execution, DST Market Services, LLC is a leading provider of mutual fund subaccounting services.
As used herein, "DST" may reference DST Systems, Inc. and/or one or more of its consolidated subsidiaries.
About DST Systems
DST Systems, Inc. is a leading provider of sophisticated information processing and servicing solutions to companies around the world. Through its global enterprise, DST delivers strategically unified business processing, customer communications, and data management solutions to the asset management, brokerage, retirement, and healthcare markets. Headquartered in Kansas City, MO., DST is a publicly-traded company on the New York Stock Exchange. For more information, visit www.dstsystems.com.
More information on DST Market Services and its new correspondent clearing services is available at www.dstmarketservices.com.
Laura M. Parsons
DST Global Public Relations
SOURCE DST Systems, Inc.