Global commodities brokerage Marex Spectron has launched a new clearing and execution platform, which will be exclusively focused on the wholesale market, including banks, funds, asset managers, corporates, and trading groups.
Dubbed ‘Marex Clearing Services,’ the new unit replaces the Pro-Trader division, which will be closed before the year-end. Marex acquired this clearing franchise from London based Schneider Trading Associates back in 2012.
At the time, the combined group was servicing over 1,100 professional traders and transacting more than 200 million contracts per year. While the bulk of Pro-Trader’s existing clients now moved into Marex Clearing Services, smaller accounts will transfer to Tower Trading Group (TTG), one of Marex’s long-term clearing clients.
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Marex said the new platform reflects its refocus on high volume, wholesale participants as well as changing regulatory and market dynamics. The new business encompasses connectivity and infrastructure, positioning across multiple markets and global exchanges, as well as bespoke clearing technology.
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Marex has expanded aggressively since being taken private in 2010 by JRJ Ventures, the private equity group founded by former Lehman executives Roger Nagioff and Jeremy Isaacs. The past year saw Marex Spectron also solidify its position across global commodities markets, including seeing its volumes maintain the top spot on the London Metal Exchange (LME), as well as on the LME Select electronic platform. In terms of the energy sector, the group was a top-three broker across agriculture, including soft commodities.
Earlier in January, Marex Spectron, which also has a global network spanning across North America and Asia, acquired the commodities business of London-based BGC European Holdings, CSC Commodities. The deal came a few weeks after it signed an agreement to acquire the customer business of futures brokerage Rosenthal Collins Group (RCG).
Commenting on the news, Ian Lowitt, Chief Executive Officer of Marex Spectron, said: “Marex Clearing Services solidifies our end-to-end offering in the wholesale space, by combining the breadth of our clearing and execution services, with the strength of our balance sheet and investment grade rating. It is a world leading offering and is an important step in the execution of our longer-term strategic vision.”