Convergex closes Bermuda operation while under SEC probe
Trading software company Convergex has closed its Bermuda operation - which is being investigated by the US Securities and Exchange Commission and Department of Justice.
It’s not clear how many employees ConvergEx Global Markets (CGM) had here but its managing director Jonathan Daspin lived here for several years. CGM’s address was listed as being at 129 Front Street in the Ingham Willkinson building.
According to a report this week in Traders Magazine, Anthony Blumberg, the US-based chief executive officer of ConvergEx Global Markets (CGM), has left the firm.
A spokesperson for ConvergEx told the magazine the Bermuda operation was officially shut down at the end of last year and its activities were now being handled from ConvergEx’s London office.
CGM, which was a subsidiary of ConvergEx’s G-Trade Services unit, primarily handled the firm’s non-electronic programme trading, and was a relatively small part of ConvergEx’s overall business, according to the spokesperson.
In December, ConvergEx - partially owned by Bank of New York Mellon - announced it was terminating a merger with CVC Capital Partners, partly because of the investigation.
Bloomberg reported this past December that the probes by the SEC and Department of Justice mainly involve certain non-electronic trade-execution practices by CGM, which was expected in 2011 to produce seven percent of Convergex’s revenue.
The New York-based company told Bloomberg that it had “taken strong actions to remedy any lapses that have occurred”.
ConvergEx posted revenue of $610 million in 2010 and earnings before interest, taxes, depreciation and amortisation, excluding certain items, of $162 million. The company, which sells software to handle trading and risk management, also functions as a broker-dealer. Its biggest competitors include Bloomberg.
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