Pershing LLC

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Pershing LLC
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Headquarters Jersey City, NJ, with 19 offices worldwide
Key People Richard F. Brueckner, Chairman and CEO; Brian T. Shea, President and COO; Dennis Wallestad, CFO
Employees over 5,000 (January 2009)
Products Clearing, execution and settlement of securities trades to firms and advisors.
Website http://www.pershing.com/

Pershing LLC, a subsidiary of Bank of New York Mellon, provides financial business solutions to more than 1,150 institutional and retail financial organizations, which represents about 5 million active investors. Pershing is a member of every major U.S. securities exchange and its international affiliates are members of the Deutsche Boerse, Irish Stock Exchange, and London Stock Exchange.

Pershing, which had $786.5 billion in assets under management as of December 2008, provides brokerage execution services as well as clearing, data processing and investment products. Its parent company Bank of New York Mellon has $20.2 trillion in assets under custody and administration in January 2009, $928 billion in assets under management and services more than $11 trillion in outstanding debt.

Brief background

Pershing LLC, which was purchased by Bank of New York in 2003 from Credit Suisse First Boston for $2 billion,[1] clears and executes transactions in listed and OTC equities, mutual funds and bonds and also offers cash management and managed funds to the securities industry. Pershing focuses its services solely on institutions and advisors; it does no retail-securities business and does not trade on its own account.[2]

Pershing has 19 offices around the world.[3] Its U.S. securities-processing operations broke down for part of September 19, 2008 under heavy trading volume, forcing brokers and investors to execute transactions by telephone or fax.[4] That report referred to Pershing LLC as "the biggest clearing firm for broker-dealers" in the U.S. market.

Latest News

In January 2009, Pershing published a white paper that found managing counterparty risk is a much more critical component of a hedge fund's overall business than it had been in prior years.[5]

In November 2008, Pershing began allowing the clients of its customers of introducing broker-dealers and registered advisors to invest in large-denomination FDIC-insured certificates of deposits spread across a network of offerers through its Certificate of Deposit Account Registry Service (CDARS).[6] CDARS also offers investors up to $50 million in FDIC insurance "per separately insurable entity."


References

  1. BONY to purchase clearing unit of CSFB. Wall Street and Technology.
  2. About Us. Pershing LLC.
  3. Pershing LLC Company Profile. Yahoo Finance.
  4. [http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20081109/REG/311109962 Crashes at clearing firms sidelined brokers in Sept. Pershing, NFS suffered clogged order pipelines]. Investment News.
  5. The Bank of New York Mellon's Pershing Unit Releases New Study for Hedge Funds Focusing on Best Practices for Managing Counterparty Risk and Relationships. Pershing.
  6. The Bank of New York Mellons Pershing Unit to Provide Customers with Access to the Certificate of Deposit Account Registry Service (CDARS). Pershing LLC.