Penson Sells Its Futures Division to Knight DALLAS--(BUSINESS WIRE)--May. 29, 2012-- Penson Worldwide, Inc. (NASDAQ: PNSN) today announced that it has agreed to sell certain assets and liabilities of the futures division of its U.S. broker-dealer subsidiary, Penson Financial Services, Inc. (PFSI), to Knight Capital Group, Inc. (NYSE Euronext: KCG). The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be completed in the second quarter of 2012. PFSIâs futures division services more than 60 introducing brokers, high-frequency traders, hedgers, non-clearing FCMs, professional traders and exchange members. As consideration for the transfer of certain assets and liabilities of the futures division, Penson will receive $5 million at closing, a portion of which is subject to the transfer of certain exchange seats or memberships. In addition, Penson is entitled to receive earn-out payments over the next three years based on the performance of the futures division. Penson management currently estimates that the total amount of consideration to be received will result in a small gain on the sale. Customer futures positions and segregated funds and collateral, and foreign exchange positions and margin will be transferred to Knight. Access to positions and accounts by customers will not change and the transfer of the business will not require any technology conversions. Current management of Pensonâs futures division will remain in place and Penson will continue to service its introducing brokers and customers through a transition services agreement with Knight. The parties expect that the majority of futures division employees will move to Knight. Additional details will be provided in subsequent Penson filings with the Securities and Exchange Commission. âKnight provides accounts with a stable, well-capitalized, independent platform and it will be âbusiness as usualâ for futures customers,â said Philip A. Pendergraft, CEO of Penson Worldwide. âThis transaction represents an ideal solution for our futures introducing brokers, customers, and related counterparties, as well as for our other stakeholders. As previously announced, we continue to work on other strategic transactions in both the US and Canadian markets.â âWeâre pleased to expand Knightâs capabilities in futures,â says Thomas M. Joyce, Chairman and Chief Executive Officer, Knight Capital Group. âWeâll continue Pensonâs work to enhance the client experience through advanced trading technologies and superior service.â Knight separately today issued its own news release on this transaction.
So, call me stupid, but I would suppose that would include MB Trading, who I use for futures. However MBT would continue to use Penson for stock, FOREX, and options? Does this sound right? Or are we/I getting ahead of ourselves and wait for more info? Stupid minds want to know.
AFTER the close of the transaction. All Futures, options on futures and FX trading will belong to Knight Capital. All "equity" accounts, Reg-T and CPM will remain at Penson Financial. If your broker is a correspondent at the FCM Penson Futures, I assume they will move their business to Knight. They might choose to move elsewhere. You will have to ask them. If you had an account at Penson or a correspondent with a futures/fx account and a Reg-T/CPM or JBO agreement, you might not have an account that enables moving assets back and forth to meet margin requirements. We will see what happens.
Hi, side note, do you have any information relative to setting up as an IB or GIB fir fut's and other over the counter products- are you a FCM ? THNX