PRESS RELEASE:Belzberg Unit To Join Natl Sec Clearing Corp
Belzberg Technologies subsidiary Electronic Brokerage Systems LLC
obtains approval to join National Securities Clearing Corporation
Self-Clearing status expected to save over $4 million annually
TORONTO, Sept. 6 /PRNewswire-FirstCall/ - Belzberg Technologies, Inc. (TSX:BLZ)
announced today that its wholly owned subsidiary, Electronic Brokerage Systems
LLC, has been approved by the National Securities Clearing Corporation to become
a member. Members agreed yesterday to approve Belzberg, subject to a few minor
administrative matters that should be resolved shortly.
"We are very excited to become an NSCC member," said CEO Sid Belzberg. "I believe
this is one of the most significant developments for Belzberg in the last five
years as we should see a significant improvement in profitability. This clears
the way for Belzberg to become self-clearing, which will significantly reduce our
costs and improve our gross margins. Coupled with the expected approval of EBS'
pending electronic NYSE membership application later this month, we anticipate
that clearing and execution fee expenses in our existing business will be reduced
by over $4 million annually. Further, additional new revenue will have significantly
higher profit margins associated with it as there will be no need to pay an intermediary
to clear client's trades. We also expect that we can be even more competitive on
pricing for new order flow business, and have a number of significant new deals
that we expect to close after gaining both NSCC and NYSE membership."
"Our expectation is that the financial impact of becoming self clearing will
begin to fully materialize in the fourth quarter," said Mr. Belzberg. "We will
spend the balance of the month of September further familiarizing ourselves with
NSCC procedures to ensure the transition to becoming self- clearing does not impact
our clients. We should be able to see the financial benefits materialize starting
in October."
About Belzberg Technologies Inc.
Belzberg Technologies provides the software and networks that enable global,
direct access routing and execution of trades for financial institutions in the
United States, Canada and Europe. Using Belzberg's suite of integrated trading
tools and network connectivity options, Belzberg's customers have direct access
to all North American equities and options markets, as well as major European stock
exchanges. The firm's client-base includes over 110 leading U.S and international
brokerage houses and financial institutions. Belzberg Technologies is listed on
the Toronto Stock Exchange (Ticker-BLZ) - additional information is available at
www.belzberg.com.
Except for historical information contained herein, the matters discussed in
this press release are based on forward-looking statements that involve risk and
uncertainty. A variety of important factors could cause results to differ materially
from such statements, including but not limited to economic, competitive, governmental
and technological factors affecting the company's operation, markets, products,
prices and other factors.
SOURCE Belzberg Technologies Inc.
/CONTACT: Steve Wilson, Belzberg Technologies Inc., (416) 360-2920,
swilson@belzberg.com/
(BLZ.)
CO: Belzberg Technologies Inc.
ST: Ontario
IN: STW NET
SU:
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http://www.prnewswire.com
(END) DOW JONES NEWS 09-06-02
09:29 AM- - 09 29 AM EDT 09-06-02
