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As the words “NYSE TRADING FLOOR TO OPEN TOMORROW” scroll across the television monitor in his living room, Sal Suarino, who is a broker for Mark J Muller Inc. located on the floor of the NYSE, is focused on the task at hand, ignoring the content on the screen — ironing his khakis for the day ahead, as he always has daily for the past decade. The prospects of returning to the New York Stock Exchange floor is more than exciting to Sal — it is a much-anticipated relief.

A STORM IS COMING: THE PANDEMIC SURGES

Locked-out from his trading terminals, self-quarantined at home, and off the trading floor were the only realities this NYSE floor broker knew amidst the swell of the coronavirus pandemic in New York City. Governor Cuomo, along with NYSE leadership, understood the severity that COVID-19 posed against the heart of the financial community within Wall Street. …


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by Michael Higgins, CEO of Velox Clearing

It has been a long and grueling 3 months since the first COVID-19 case reared its head in the United States. When the first deaths were reported no one could have predicted the global impact it would have. Quarantine efforts in China were minimized but once the disease began to rapidly expand it became obvious this was to become a global concern.

As Americans, we are confident in our ability to combat any invader. We’ve braved tough foes throughout our years, but this silent enemy doesn’t abide by any code nor creed.

After analyzing the effects of COVID-19 on brokerage firms, we ascertained three perspectives on what to anticipate from the fallout of this pandemic, how brokerage firms have adapted, and when we should expect to see the light at the end of the tunnel. …


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by Walter Peczon, EVP of Sales

The global economy is teetering within unstable financial markets.

As world financial indices first began to down-turn in March, market events and regulatory updates have kept investors on edge, and the gap between worry and hope has narrowed.

However, in some cases, market volatility can stabilize the economy by correcting positions, providing liquidity, and improving overall market health through diversification.

We wanted to explore how the recent market volatility has helped financial professionals support their customers:

- How do financial professionals leverage market volatility in their favor?

- In what ways can volatility give back to the economy? …


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by Walter Peczon

Does your business need to expand its financial services offering? Whether you are a broker-dealer or a registered investment adviser, one tangible product you must consider is a Robo-Adviser to become more competitive and relevant in today’s marketplace.

Through a well-developed strategy, the successful launch of a Robo-Adviser relies firmly on distinction and innovation. There are multiple approaches to creating your own Robo-Adviser, but it is prudent to understand the benefits and drawbacks of each tactic.

Today, there are a large number of new entrants in the market — all of whom have identified their differentiation within the marketplace. As more investment advisers and brokerage firms see the opportunities with online portfolio management platforms, there is enough room for these players to repeat mistakes from the original disruptors. …


wall-street-trading-floor-nyse-traders=broker-dealers-velox-clearing-coronavirus-pandemic
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by Walter Peczon

Finance evolves.

Like a virus, the financial services industry is continuously evolving, and it took the natural evolution of the coronavirus genome to spark global attention.

For viruses and financial services firms, the survivability through this natural selection process is what shapes the global economy and society.

The evolution of coronaviruses to its current form COVID-19 continues to be a tragedy for millions of people around the world. In fact, coronaviruses have been around for a long time — possibly even centuries. Some of the older strains include alpha coronaviruses, beta coronaviruses, and more recently, strains over the past ten years have included SARS coronavirus, and MERS coronavirus. …


January 16, 2020 7:00 am by Walter Peczon

On May 1st, 1975, the earth underneath 11 Wall Street shook.

At first, tremors were expected leading up to this day, but no one expected a full quake.

On May Day 1975, the Securities and Exchange Commission introduced extensive securities regulation reform and abolished fixed trade commissions — widely considered the most comprehensive securities legislation in decades. For the first time in living memory, market competition would set trading fees.

This move triggered the emergence of deep-discount brokerages, which viewed trading commissions as loss leaders while making money in other areas (order routing, customer balances, managed portfolios and more). …


On May 1st, 1975, the earth underneath 11 Wall Street shook. At first, tremors were expected leading up to this day, but no one expected a full quake.

On May Day 1975, the Securities and Exchange Commission introduced extensive securities regulation reform and abolished fixed trade commissions — widely considered the most comprehensive securities legislation in decades. For the first time in living memory, market competition would set trading fees.

This move triggered the emergence of deep-discount brokerages, which viewed trading commissions as loss leaders while making money in other areas (order routing, customer balances, managed portfolios and more). Clients, inevitably, left pricier wire houses in droves.

Fast forward to this past decade, a new breed of firms has emerged, opening the wounds that were healing from the rise of deep-discount brokerages: zero commission robo-advisors.

Zero commission robo-advisors offer passive investment strategies and leverage client data to develop free trading, automated portfolio allocations, adopting user-friendly digital interfaces that enabled clients to engage with their finances from anywhere, at any time.

Pledging to further democratize index investing, robo-advisor juggernauts such as Robinhood were among the first to mobilize online trades by promising no commissions and no account minimum deposits.

Now, the securities industry has caught its breath, wiped the sweat from its forehead, and is racing to adapt once again, including brokerage behemoths that are rethinking their legacy business models.

Unsurprisingly, “Millennials” and “Gen Z” investors have been instrumental in the growing popularity of robo-advisors. And, despite the pessimists, robo-advisors have been successful in attracting retail assets away from incumbent players — one study estimates that robo-advisors’ assets under management will expand to $4.1 trillion in 2022, from an estimated $330 billion in 2017.

Instead of waiting on the sidelines as the disruption happens around them, many advisors are now seizing the chance to attract next-generation investors and expand their geographic reach. These forward-looking advisors are now implementing robo-advisory services firmly underpinned by the human expertise that they have spent their career building — expertise that many novice investors will likely consider valuable as their needs become more complex.



So, you’re launching a robo. What next?

The decision to launch a robo is undoubtedly an exciting one yet it represents just the first hurdle in a series of vital choices. And, of the subsequent decisions you must make, selecting the right clearing firm for your clients’ assets is arguably among the most important.

With that in mind, we’ve put together a handy guide to some of the key factors you should consider as you weigh your options:



Technology

It goes without saying, but a large part of the reason that investors have thus far embraced robos is the convenience and user experience that their technology affords. A worthy clearing firm should therefore be equally tech-savvy, with robust front and back-office systems that are equipped to handle the high trading volumes associated with today’s markets. For robos in particular, it is important to ensure that a clearing partner offers flexible APIs that support integrations between various platforms and facilitate streamlined business processes.



Cybersecurity

Data breaches and hacks stand to undermine clients’ trust, and can even pose an existential threat to some small businesses. Financial services firms continue to represent attractive targets for exploitative cyber-hackers and, as such, robos should take care to vet prospective clearing firms’ cybersecurity procedures. Talk to them about the specific protections they have in place to ensure that client and firm data is safeguarded. Do they have a formal contingency plan in the event that they fall victim to a cyberattack? What is the protocol for training new employees on security best practices? What kind of cybersecurity insurance policy does the firm in place? How often is data backed up?



Service

The promise of automated, tech-driven customer service might be appealing in some instances, but when it comes to ensuring that your business is running smoothly, a chatbot isn’t going to cut it. Launching a robo is a big undertaking, and you’ll want to ensure that your clearing firm understands — and supports — the needs of your firm.



Will the clearing firm offer a dedicated account representative/team? What is the process for reaching them, and what kind of response time can you expect? What are their credentials and industry experience? Knowing that you have the right team in place to support you can be a huge weight off your shoulders.



Pricing

Robo-advisors’ client acquisition costs can be quite high and furthermore, these clients typically expect to pay lower costs than they might elsewhere. This presents a new problem, with various robo-advisors attempting to gain market share while operating on razor-thin profit margins.

For this reason, robos should be engaging in candid conversations with prospective clearing firms about their pricing models and whether there’s room to grow together — are they willing to be flexible on fee structures now, while your business is still in its nascent stages? It’s also important to be clear on what you are getting in return. A trustworthy clearing partner will work with you to limit execution costs, mitigate risk, support compliance demands and enhance overall efficiency.

*****

The industry is at a digital threshold, with a crop of new robos emerging to offer investors free brokerage, achieving scale via differentiators such as algorithmic, TPAM, chat room and fractional share trading.

Innovation is non-negotiable in today’s environment and, as you embark upon this new journey with your robo offering, it’s important that you’re able to focus on what you do best: serving your clients effectively.

Ultimately, it’s worth taking the time to ensure that you identify a nimble and forward-looking clearing firm that can navigate emerging trends while sharing in your values and your commitment to clients’ needs. The right partner can make all the difference. …


If you asked us at the beginning of 2019 where we would be heading, we’d be dead wrong.

After hiring top talent, building an operational clearing system, and strategizing new plans to reach for the stars, we feel confident that our time is now.

Proceeding into 2020, we’re excited to drive new business growth and we want to share the adventure with you.

Here is the progress we’ve made:

Our Official Launch as a New Clearing Firm.

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With over 200 attendees and a lot of re-connecting with friends, our Velox Clearing Launch party was a huge hit in New York. Everyone who came to the event enjoyed the securities industry discussions with our Velox representatives, along with food and drinks at the Skylark rooftop bar. …


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Velox Clearing sponsors 94th Annual Mid-Winter Meeting for STA Chicago

ANAHEIM, CA — December XX, 2019STA Chicago (“Security Traders Association of Chicago”), a leading trade organization for individual professionals in the securities industry that works to improve the ethics, business standards and working environment for its members, announced it will welcome Velox Clearing as an Event Sponsor for their 94th Annual Mid-Winter Meeting. The Chicago affiliate (STAC) is comprised of 600+ professional trade industry members who are engaged in the buying, selling and trading of securities.

The Security Traders Association of Chicago (STAC) hosts conferences that promote professional development, serve as a platform for influential leaders in the industry, as well as provide a forum for networking. STAC members receive registration fee discounts for conferences, events, and continuing education courses. …


Clearing firm that services small-to-mid sized firms launches a new website for their audience

ANAHEIM, CA — October 31, 2019 — Say hello to the new Velox Clearing website: www.velox-global.com


We are very excited to announce the launch of our newly designed website. After months of hard work, collaboration, and dedication, we are ecstatic to officially announce the launch of our website. We wanted to make the new website faster, easier to navigate, and more user-friendly. As a financial services provider, it’s important for us to make information regarding our thought leadership, services and trends easily accessible for our current and prospective clients. We aim to support our client partners with the most accurate, up-to-date information and share our knowledge and expertise in the fields of Finance, Brokerage, and Clearing.

The brand new website contains information that is available to anyone wanting to know what we do or who we are, including the About Us page; this webpage features our executive team as a whole and their backgrounds. Additionally, this new website features our Solutions offerings, entailing what our business offers in terms of services, which includes securities clearing, settlement, custody, margin lending, stock loan, and prime brokerage solutions to small- to mid-sized broker-dealers, registered investment advisers (RIAs), hedge funds and automated (black box) traders.

Our goal with this new website is to provide our visitors an easier way to learn about Velox Clearing’s services and to browse information based on their own choice. The new website gives better access to Who We Are, Our Solutions, Resources, and forthcoming pages, as well as a Careers page. Our current and prospective clients will find useful information about our services on the homepage of our website. Amongst the new features the site contains integrated client buttons for our portal to foster improved communication and operational efficiency with the clients. We will be constantly updating our content with helpful information, cutting edge thought leadership, and company announcement. You can also sign up for our Velox Monthly newsletter.

Our mission at Velox Clearing is to provide a seamless customer experience that has as little obstacles as possible — because dedicated service is at our core. With a redesigned website that features an intuitive interface, we strive to lessen the risk visitors have when navigating our online business front. Also, with an orgnizational shift in how we approach technology, as a clearing firm, innovative technologies must be at the forefront of what we accomplish.

We would also like to thank our amazing staff at Velox Clearing who invested their time and energy to help grow this project.

For any questions, suggestions, feedback or comments, please reach out at sales@velox-global.com.

About Velox Clearing
Headquartered in Anaheim, CA, Velox Clearing LLC is a technology-forward Correspondent clearing firm, prime broker and RIA custodian. Combining deep expertise, exceptional client service and cutting-edge technology, Velox Clearing empowers its clients to focus on controlling costs, acquiring new business and leveraging their market presence.

Velox Clearing brings superior efficiency and speed to the back-office, supporting its customers’ business operations by combining modern, responsive technology with high-touch service, competitive pricing, and rigorous risk management controls. It also offers flexible APIs that enable the firm’s customers to seamlessly integrate their existing infrastructure with Velox’s environment — in some instances, this can reduce account opening times to mere seconds.

Velox Clearing is registered with the SEC and is a member of FINRA, NYSE, DTCC/NSCC, SIPC. …

About

Velox Clearing

Headquartered in Southern California, Velox is a technology-driven firm offering clearing and prime brokerage services. https://www.velox-global.com

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