Converting to a Self-Clearing or Introducing Broker

Considering Moving to an Introducing Broker?

Maintaining a self-clearing broker-dealer status has become increasingly difficult, forcing some firms to reconsider the decision. On a macro level, regulatory and technology issues have dominated the business for a decade, leading to an ever shrinking number of total registered member firms, let alone self-clearing broker-dealers.

Critically, as our industry has consolidated over the years, securing the human resources talent needed to operate the back office has become quite difficult in many regions, regardless of your budget.

The decision to move from a self-clearing platform and give up control to a correspondent clearing broker is not made lightly, and the related conversions are typically quite difficult to successfully accomplish.

 Considering Becoming a Self-Clearing Broker?

In days gone by, moving to self-clearing was considered the next logical step as a broker-dealer grew in size and complexity. While much less frequent, these conversions still occur. Self-control business issues and cost considerations still drive firms to internalize clearing and operational functions, while obtaining direct clearing and depository memberships.

The world of clearing and operations is our backyard. Our guidance and support is exceptional in this area. Aside from our personal expertise, we have been privileged to develop long-term friendships with the major system and platform providers in this industry. Our network of high-caliber industry professionals can assist you in making one of the most important decisions your firm will face.

In either circumstance, we offer a unique blend of industry experience THAT IS familiar with the roles and responsibilities of both the Introducing Broker and the Clearing Broker.

We have the practical experience to coordinate all aspects of the systems platform and human resource related conversions. We also specialize in restructuring firms and implementing management changes.

These conversions are not done every day. Experience determines success. Contact us to see what insights we can offer.