Equity Exchange

An Equity Exchange Desk

In 2017, Penserra merged with Cheevers & Company, a member of the Chicago Stock Exchange (now NYSE Chicago) since 1982 and a member of FINRA since 1994. After the merger, Cheevers QCT crossing desk was integrated into Penserra and conducts business as its Equity Exchange Desk. Penserra’s Equity Exchange Desk provides execution and clearing services for some of the world’s largest banks and brokers.

Penserra maintains a clearing relationship with BofA Securities. This relationship allows Penserra to facilitate clearing through multiple clearing arrangements requested by our clients such as:

Automatic Give-Up (AGU)

Correspondent Clearing

Qualified Special Represenative (QSR)

Delivery versus Payment (DVP)

NYSE Chicago Exchange give-up Regional Interface Operations (RIO)

Penserra has a full-time back office staff that will assist with any questions and ensure that trades are processed.

Equity Exchange has grown to become one of the largest volume brokers on the NYSE Chicago.

Historically a niche player facilitating equity executions tied to exchange-traded derivatives, Equity Exchange has grown to become one of the largest volume brokers on the NYSE Chicago. On a daily basis, Penserra’s Equity Exchange Desk executes and processes high volume, complex, multi-party equity trades tied to derivative strategies, or stock option package trades. The stock portion is contingent upon the execution of the option component, and the stock print is considered a Qualified Contingent Trade (QCT) under Regulation NMS and is exempt from Regulation NMS 611(a) trade-through provisions allowing the Equity Exchange Desk to print the equity leg outside the bid or offer. However, the Equity Exchange Desk is only allowed to use the QCT exemption based on the Securities Exchange Commission (SEC) Order found in Release No. 34-54389 which provides that a QCT is a transaction consisting of two or more component orders, executed as agent or principal, where:

  1. at least one component order is in an NMS stock;
  2. all components are effected with a product or price contingency that either has been agreed to by the respective counterparties or arranged for by a broker-dealer as principal or agent;
  3. the execution of one component is contingent upon the execution of all other components at or near the same time;
  4. the specific relationship between the component orders (e.g., the spread between the prices of the component orders) is determined at the time the contingent order is placed;
  5. the component orders bear a derivative relationship to one another, represent different classes of shares of the same issuer, or involve the securities of participants in mergers or with intentions to merge that have been announced or since cancelled; and
  6. the Exempted NMS Stock Transaction is fully hedged (without regard to any prior existing position) as a result of the other component of the contingent trade.

Dealer Equity Exchange Services Desk: 312.663.2794 • 800.611.2794

For more information, please contact Jonathan Bloom at jonathan.bloom@penserra.com