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November 2, 2009

Penson Enters Into Outsourcing Agreement With Broadridge Financial

For technology services and selected processing functions

By CBR Staff Writer

Penson Worldwide, that provides execution, clearing, settlement, custody and technology products and services to the global financial services industry, has entered into a global strategic relationship with Broadridge Financial Solutions. The relationship is expected to significantly expand revenues and margins of Penson’s securities clearing and execution businesses.

The relationship is based on a series of agreements that involve, Penson acquiring the clearing contracts of Broadridge’s Ridge correspondent clearing and execution business for consideration in the form of a promissory note and stock, if needed, Broadridge providing certain financing, Broadridge supplying technology and certain processing functions on an outsourced basis for Penson’s US, Canadian and UK securities clearing brokers and the two companies offering each other’s services to various customers and prospects on a global basis.

Penson co-founders, CEO Philip Pendergraft and president Daniel Son, said: “We will add significantly to our correspondent and revenue base, and improve our scale and operating leverage, leading to higher overall margins. This is an important step towards our vision of building the pre-eminent independent clearing and execution services firm.”

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