Clearing Services

The clearing industry consolidation that had been evident for the past 10 years continues and has even gained momentum. During the past year, even more long-standing clearing firms disappeared, having been acquired by other firms. Clearing firms are now fewer in number, but larger in size, and that trend will likely continue. As many of the experienced, independent firms leave the industry, the clearing landscape will be made up of a much narrower range of choices, with few that are able to offer high-quality service and personalized attention.

Regulatory Reform is Here to Stay
To no one's surprise, the regulatory framework in the United States is changing and will mandate increased scrutiny of securities sales and protection for the investing public. Beginning in the year 2000, many significant rules have been adopted, including anti-money laundering laws, privacy rules, price transparency requirements, business continuity plans and others. Mesirow Financial is committed to keeping abreast of the myriad of new rules and laws, with significant commitments of capital, research and personnel to ensure compliance with the continuously changing regulatory landscape.

Opportunities in the Upheaval
For many of our broker/dealer and investment advisor clients, the financial industry upheaval has been a double-edge sword. The upheaval has created concern among firms as revenues from previously reliable sources may have shrunk or disappeared. As a result, firms have been forced to monitor costs more closely than ever and to ensure that all costs are strongly tied to revenue sources.

But at the same time, this period of uncertainty can serve as an opportunity for investment firms to attract new clients and new producers, and find alternative products that address clients' heightened desire for safety. By focusing on the evolving needs of their investment clients and rethinking their business models, firms may put themselves in a better position for the future.

In addition, periods of uncertainty offer an opportunity for investment firms to build their businesses by attracting brokers and advisors who are experiencing upheaval. Many such investment professionals are now seeking a stable firm with whom they can establish a long-term relationship in order to best meet their clients' needs.

Clearing Firms: Provide Value-Added Service
More than ever, broker/dealer and investment advisor firms are seeking clearing partners that engender confidence and trust in their stability and financial strength. Although highly-personalized service has always been a defining characteristic of our business model, Mesirow Financial Clearing Services has always focused on ensuring that brokers and advisors have the resources they need during difficult markets to build their businesses and differentiate themselves to their clients.