Cantor Fitzgerald has unveiled plans to launch a clearing settlement and technology solutions service in conjunction with software vendor SunGard.
Subject to approval by independent US watchdog, the Financial Industry Regulatory Authority, the new venture known as Cantor Clearing is scheduled for launch in Q4 2012.
Cantor Clearing will offer tools to correspondent clearing firms, including institutional broker dealers, online direct access broker dealers, registered investment advisors and other asset managers.
The service will be supported by SunGard’s suite of clearing and settlement, which will help to streamline front-to-back securities processing for clients, offering a single back-office platform with real-time settlement and connectivity to clearing houses, exchanges and other facilities. SunGard will also provide pre- and post-trade analytics and portfolio analysis tools.
"The formation of Cantor Clearing will complement our comprehensive suite of products and services, and is a natural extension of our growing prime services platform," Noel Kimmel, CEO of Cantor Clearing and head of Cantor prime services. "By leveraging existing in-house capabilities, our robust global infrastructure, cross-asset expertise and SunGard's technology, we will provide a comprehensive solution tailored to the needs of middle market clients."
"SunGard's real-time functionality allows customers to see positions and balances as they trade, enabling real-time transparency throughout the day,” added John Grimaldi, executive vice president of SunGard's North American securities operations and securities finance business. “SunGard also supports multiple margin methodologies, helping Cantor Clearing to more effectively calculate and report relevant data to its correspondents and compete more effectively in a challenging industry."