Pershing introduces Rule 10b5-1 trading-plan tool

FWR Staff

17 December 2007

Clearing firm adds third-party software to its account and trading platform. Pershing is out to help its clients -- introducing broker-dealers and RIAs -- bring in business from corporate executives and generally expand their wealth-management capabilities by giving their advisors the ability to manage compliance and administrative operations associated with Rule 10b5-1 trading plans.

The SEC's Rule 10bt-1 governs insider trading. It lets company affiliates or insiders not in possession of "material non-public information" trade company stock in accordance with pre-established contracts.

Delicate

Pershing is making Restricted Stock Systems' 10b5-1 Trading Plan available to broker-dealer reps through its NetExchange Pro account-management and trading platform and to RIAs through NetExchange Advisor. This "allows for streamlined connectivity with Pershing's trading desks and The Rules Engine, its automated compliance tool for order management," Pershing says in a press release. "Orders that pass through the 'Rules Engine' are automatically sent to the market for execution."

The 10b5-1 Trading Plan product helps create restricted-stock and insider filings, monitors market data in real time to eliminate the risk of errors, provides comprehensive audit trails, reporting tools that facilitate examining and analyzing commission revenues, assets under management, plan volumes and trade executions.

"We are pleased to provide our introducing broker-dealer and independent registered investment advisor customers with a comprehensive Rule 10b5-1 trading plan solution," says Ron Fiske, Pershing's head of product development. "This new capability illustrates our continued commitment to provide our customers with market-leading wealth management tools and solutions to help them grow their businesses."

Jersey City, N.J.-based Pershing is a subsidiary of Bank of New York Mellon. -FWR

Purchase reproduction rights to this article.