Log In

Reset Password

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.

You must be Registered or to post comment or to vote.

Published March 13, 2012 at 2:00 am (Updated March 13, 2012 at 9:30 am)

Convergex closes Bermuda operation while under SEC probe

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon