Velocity Clearing and Raymond James Announce Prime Brokerage Services Referral Agreement
Velocity Clearing LLC has entered into a Prime Brokerage services referral agreement with Raymond James Financial (NYSE: RJF). This agreement allows Raymond James to introduce Velocity's Prime Brokerage Services to their institutional client base, providing core custody, clearance & settlement, financing, and securities lending. The partnership aims to offer a meaningful value-add option for Raymond James' institutional client partnerships and includes access to multiple balance sheets and product mix, as well as deep expertise in securities lending.
The referral agreement between Velocity Clearing LLC and Raymond James Financial represents a strategic alliance that could potentially expand Raymond James' service offerings and enhance its competitive position in the prime brokerage market. By introducing Velocity's prime brokerage services to its institutional client base, Raymond James is leveraging Velocity's specialized capabilities in core custody, clearance & settlement, financing and securities lending. This collaboration is likely to be financially beneficial for both firms, as it enables Raymond James to offer a more comprehensive suite of services while allowing Velocity to tap into a larger client pool.
From a financial perspective, the agreement may lead to increased revenue streams for both entities through shared clients and potential volume discounts. Additionally, the partnership could result in cost synergies by optimizing the use of technology and infrastructure. Stakeholders of Raymond James may see this as a positive move, as it could drive growth in the institutional segment without the need for significant capital investment. However, the success of this partnership will depend on the seamless integration of services and the ability to maintain high service quality to meet the expectations of sophisticated institutional clients.
The prime brokerage market is highly competitive, with a focus on providing tailored services to hedge funds and other professional fund managers. Velocity Clearing LLC's boutique client service model and diverse product mix could provide Raymond James with a distinctive edge in attracting and retaining institutional clients. The agreement could also reflect broader industry trends where companies seek to differentiate through partnerships that expand their service portfolios, rather than through direct competition.
For the market at large, this partnership may signal a shift towards more collaborative models in financial services, where firms combine strengths to address the complex needs of clients. This could lead to similar agreements across the industry, as companies aim to enhance their value propositions. The long-term impact on the market will depend on how effectively these collaborations improve client outcomes and whether they can drive industry innovation. For investors, partnerships like this could be indicative of a company's adaptability and commitment to growth, which are key considerations in evaluating a company's future performance and stock potential.
In the context of a prime brokerage services referral agreement, it is critical to consider the regulatory implications and compliance requirements. The partnership between Velocity Clearing LLC and Raymond James Financial must adhere to strict financial regulations that govern prime brokerage activities, including custody, clearance & settlement and securities lending. Ensuring regulatory compliance is essential for the protection of institutional clients' assets and for maintaining the integrity of the financial markets.
Moreover, the agreement must be structured to align with fiduciary duties and to avoid conflicts of interest, which could otherwise undermine client trust and potentially lead to legal challenges. It is likely that both firms have conducted thorough due diligence to ensure that the partnership meets all legal and regulatory standards. The transparency and legal soundness of the agreement are beneficial for stakeholders, as they minimize legal risks and contribute to the stability and reliability of the services offered.
01/24/2024 - 09:00 AM
NEW YORK --(BUSINESS WIRE)--
Velocity Clearing LLC , a global financial services technology company, today announced it has entered into a Prime Brokerage services referral agreement with Raymond James Financial (NYSE: RJF), a leading diversified financial services company.
The agreement allows for Raymond James institutional sales and sales traders to introduce Velocity Prime Brokerage Services to their institutional client base of hedge funds and other professional fund managers. Velocity’s prime brokerage offering includes core custody, clearance & settlement, financing and securities lending that can complement the premier equity research, analyst access and corporate access offered by Raymond James.
“Velocity’s Prime Brokerage offering is a meaningful value-add option for our institutional client partnerships,” said David De Luca, Global Head of Equities for Raymond James. “We are impressed with Velocity’s differentiated and boutique client service model, its access to multiple balance sheets and product mix and the firm’s deep expertise in securities lending.”
Brian Schaeffer, president of Velocity Clearing, said, “Velocity Clearing is delighted to be a proud partner of Raymond James. Our agreement allows institutional investors to custody assets directly with Velocity, or on an introduced basis with other clearing firms we partner with. Our management team of industry veterans has deep experience in Prime Brokerage coupled with consulting expertise geared towards private fund managers. Our focus will be on providing high quality, high touch service to institutional clients. The team and technology that Robert Kalaf, COO & Head of Prime Services, has built will be a differentiator in the PB marketplace.”
About Velocity Clearing, LLC
Velocity Clearing is a self-clearing broker/dealer serving correspondents, Prime Brokerage clients, active retail traders, emerging hedge funds and other market participants. The firm began in 2003 providing locates on hard-to-borrow securities, and now offers institutions and sophisticated traders a full, tech-enabled ecosystem for securities locates, borrowing, executing, clearing, custody and financing. Over the past few years, Velocity expanded its suite of services to include portfolio margin and execution and clearing for options, tied together with a seamless user experience, proven risk management, and a veteran team of traders and technologists. With a growing team in multiple U.S. and overseas locations, Velocity has the right combination of resources and people to service clients around the globe on a 24x6 basis. Velocity Clearing is a member of FINRA and SIPC.
About Raymond James Financial, Inc.
Raymond James Financial, Inc. (NYSE: RJF) is a leading diversified financial services company providing private client group, capital markets, asset management, banking and other services to individuals, corporations and municipalities. The company has approximately 8,700 financial advisors. Total client assets are $1.32 trillion www.raymondjames.com .
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Source: Velocity Clearing LLC
What is the name of the global financial services technology company in the press release?
Who has entered into a Prime Brokerage services referral agreement with Raymond James Financial?
What is the ticker symbol for Raymond James Financial?
What services are included in Velocity's prime brokerage offering?
Core custody, clearance & settlement, financing, and securities lending
Who is the Global Head of Equities for Raymond James?
Who is the president of Velocity Clearing?
Who is the COO & Head of Prime Services at Velocity Clearing?
Raymond James Financial, Inc.
RJF Rankings
#3339 Ranked by Stock Gains
RJF Stock Data
Industry
Investment Banking and Securities Dealing
Sector
Finance and Insurance
Tags
Finance, Investment Banks/Brokers, Finance and Insurance, Investment Banking and Securities Dealing
Country
US
City
St Petersburg
About RJF
founded in 1962 and a public company since 1983, raymond james is a florida-based diversified holding company providing financial services to individuals, corporations and municipalities through its subsidiary companies engaged primarily in investment and financial planning, in addition to capital markets and asset management. the firm's stock is traded on the new york stock exchange (rjf). through its three broker/dealer subsidiaries, raymond james financial has approximately 6,600 financial advisors serving in excess of 2.7 million client accounts in more than 2,700 locations throughout the united states, canada and overseas. total client assets are approximately $504 billion. raymond james has been recognized nationally for its community support and corporate philanthropy. the company has been ranked as one of the best in the country in customer service, as a great place to work and as a national leader in support of the arts.
