TradeStation Securities, Inc. (Member NYSE, FINRA, SIPC and NFA)
today announced the hiring of Robert Sackett to start up and lead
the securities lending department of, and co-head, its TradeStation
Prime Services division.
"Securities lending services are a critical component of our
plan to build a first-class prime brokerage offering to small and
mid-sized hedge funds and other buy-side traders who can no longer
receive important prime brokerage services directly from the large
firms," said Salomon Sredni, CEO of TradeStation Group, the parent
company of TradeStation Securities. "We believe TradeStation's
position as a self-clearing broker-dealer serving this market
allows it to offer a more compelling value proposition compared to
other firms that cannot directly provide custody, clearing,
settlement and securities lending and must instead rely on the
large firms to which they introduce all of their accounts."
"We believe Rob's 15 years of experience and relationships in
securities lending will allow TradeStation to compete effectively
in a market that continues to see industry fragmentation and where
small to mid-sized buy-side institutional traders continue to seek
prime brokers capable of directly delivering to them basic,
critical prime services," added Lance Baraker, Senior Managing
Director and co-head of TradeStation Prime
Services.
Mr. Sackett is leaving his position of Managing Director at
Citigroup Global Markets Inc. to join TradeStation Prime Services
as Senior Managing Director and co-head of the division. He
has over 15 years of securities lending experience at Citigroup and
its predecessors, and has been a NYSE-approved Securities Lending
Representative since 1995 and a NYSE-approved Securities Lending
Supervisor since 2002. He is scheduled to begin his employment with
TradeStation after the Thanksgiving holiday, following the
expiration of his 75-day garden leave period with Citigroup.
TradeStation Prime Services expects to begin offering securities
lending services in the 2011 first quarter.
For additional information about TradeStation Prime Services,
please visit: http://www.tradestationprime.com/.
About TradeStation Prime Services, a division of
TradeStation Securities, Inc.
TradeStation Prime Services, a division of TradeStation
Securities, Inc., was founded to serve the needs of start-up to
mid-sized hedge funds, registered investment advisers, professional
traders and asset managers who need quality prime brokerage
services, including execution and clearance, securities lending,
capital introduction, and "incubation" services. Clients are
offered electronic trading and decision-support platforms,
including TradeStation, to analyze their trading strategies and
automate or manually place their orders, and may avail themselves
of the firm's NYSE floor membership, which allows it to execute
trades on behalf of clients on the NYSE floor as well as in other
market centers from its NYSE floor booth/outsourced trading desk.
TradeStation Prime Services is located at 400 Madison Avenue, New
York, New York.
TradeStation Securities, Inc. (Member NYSE, FINRA, SIPC &
NFA) is a licensed, self-clearing securities broker-dealer and a
registered omnibus-clearing futures commission merchant, and has
memberships or similar approved status (as well as direct
connectivity for both market data and order execution) with BATS
Z-Exchange, Boston Options Exchange, Chicago Board Options
Exchange, Chicago Stock Exchange, EDGA Exchange, EDGX Exchange,
International Securities Exchange, NASDAQ OMX BX, NASDAQ OMX PHLX,
The NASDAQ Stock Market, NYSE Arca and NYSE Amex. For futures
accounts, TradeStation connects directly (for both market data and
order execution) with the CME Group, Eurex Group and ICE Group
(U.S. and Europe) exchanges. TradeStation is a clearance member
with DTCC and OCC for equities and options, serves its futures
accounts on an omnibus clearance basis, and also introduces
institutional equities accounts to J. P. Morgan Clearing Corp., as
clearance agent. TradeStation Securities has offices in South
Florida, New York, Chicago and Dallas, and an affiliated
introducing broker (TradeStation Europe Limited) in London.
About TradeStation Group, Inc.
TradeStation Group, Inc. (Nasdaq:TRAD), through its principal
operating subsidiary, TradeStation Securities, Inc., offers the
TradeStation platform to the active trader and certain
institutional trader markets. TradeStation is an electronic trading
platform that offers state-of-the-art electronic order execution
and enables clients to design, test, optimize, monitor and automate
their own custom Equities, Options, Futures and Forex trading
strategies. TradeStation Group's other operating subsidiaries are
TradeStation Technologies, Inc. and TradeStation Europe
Limited.
Forward-Looking Statements – Issues, Uncertainties and
Risk Factors
This press release contains statements that are forward-looking
and are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. When used in this press
release, the word "believe," "expects," "plan" and similar
expressions, if and to the extent used, are intended to identify
forward-looking statements. All forward-looking statements are
based largely on current expectations and beliefs concerning future
events that are subject to substantial risks and uncertainties.
Actual results may differ materially from the results herein
suggested. Factors that may cause or contribute to the various
potential differences include, but are not limited to, the
company's new "TradeStation Prime Services" division, generally,
including the planned new securities lending department, turning
out to be less profitable, less successful, and/or more costly than
expected, or resulting in unanticipated claims or liabilities
against the company, as a result of (1) Mr. Sackett's employment,
and/or the securities lending department he is expected to head,
not beginning or working out as planned and expected, (2)
unanticipated start-up or development costs and expenses that are
not offset or exceeded by expected revenues as and when planned (or
at all), (3) the TradeStation prime services offering generally,
and securities lending services particularly, not growing in appeal
to prime services clients to the extent the company believes they
will, (4) the failure of the company to make timely and quality
enhancements to its trading platform, or to offer alternative
platforms, which are believed necessary to attract prime services
clients to use TradeStation to execute and clear trades, (5)
TradeStation's size and balance sheet being unacceptably small to
mid-size and larger prime services clients (which are part of the
market segment the company intends to serve) and third-party
providers of credit, funding and inventory required for a
successful securities lending department, and (6) the general
unpredictability of operating results for a start-up business
division, particularly given TradeStation's lack of experience in
offering prime brokerage services generally and securities lending
in particular.
CONTACT: William P. Cahill
President & Chief Operating Officer
TradeStation Securities, Inc.
954-652-7852
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