Wedbush Securities

Last updated
Wedbush Securities
Private
Industry Financial Services
FoundedLos Angeles, California
(1955)
FounderEdward W. Wedbush
Headquarters1000 Wilshire Boulevard
Los Angeles, California
Key people
  • Co-President:
  • Gary L. Wedbush
  • EVPs:
  • Dan E. Billings
  • Burke Dempsey
  • Andrew Druch
  • Bob Fitzsimmons
  • Kirsten Fraunces
  • Donald W. Hultgren
  • Chris Mone
  • Danny Nadalalicea
  • Rob Paset
ProductsInvestment Banking
Fixed Income
Capital Markets
Equity Research
Correspondent Services
Wealth Management
Futures Commission Merchant (FCM)
Commodity Trading Advisor (CTA)
Website wedbush.com
wedbushfutures.com
kluiscommodities.com

Wedbush Securities Inc. is a privately held financial services and investment firm. based in Los Angeles. [1] Gary Wedbush was appointed as Co-President in May 2018. [2] The founder, Edward Wedbush, served as President for 63 years.

Contents

History

The firm was founded in 1955 by two high school friends, Edward W. Wedbush and Robert Werner, in Los Angeles, California. They each contributed $5,000 to capitalize their new company, Wedbush & Company. [3] The company was named after Wedbush because neither partner wanted a possible business failure named after them and Wedbush lost a coin toss. [4]

Wedbush opened its first office in 1957 located in the Crenshaw district of Los Angeles. Three years later, Robert Werner decided to sell his interest in the firm to Ed Wedbush. [5] In 1971, the firm became members of the New York Stock Exchange (NYSE), the Depository Trust & Clearing Corporation (DTCC), and the National Securities Clearing Corporation (NSCC). In 1972, the firm began offering correspondent clearing services, providing trade execution for other brokerage firms. [6] The firm also added an Investment Banking group in 1975.

Wedbush expanded their trading and research capabilities and added several retail brokerage offices. [7] In 2000, the firm launched BrokerInsight, a workstation for order entry, portfolio valuation, and account management and in 2006, the firm became the #1 Liquidity Provider on NASDAQ. In late 2009, the firm changed its name to Wedbush Securities Inc. from Wedbush Morgan Securities Inc.

On June 13, 2011, Wedbush Securities' parent company, Wedbush Inc. announced the acquisition of Lime brokerage, a provider of low-latency, high-throughput trading technologies and high-volume agency brokerage. [8]

Barron's released the research results conducted by Zacks Investment Research for top stock picking firms. Zack's scored Wedbush as the number one stock picking firm for three of their four survey periods. Barron's announced that, "Los Angeles-based Wedbush Securities surfed to top honors by wide margins over the 6, 12 and 36 months ended Dec. 31, 2011." [9]

In 2014, Wedbush launched Wedbush Futures, and became the first U.S. financial institution to accept Bitcoin payments. [10] Wedbush Futures is one of the largest non-bank FCMs in the nation. [11] Wedbush also acquired First Capitol Ag, a full service brokerage specializing in agricultural hedging. [12]

In 2018, Wedbush acquired Kluis Commodity Advisors, which merged with First Capitol Ag [13] , and sold Lime Brokerage. [14]

Corporate divisions

The firm is organized into four main divisions: Capital Markets, Wealth Management, Correspondent Services, and Futures.

Ownership and management

In 2018, Gary Wedbush, who is the son of founder and long-serving CEO Edward W. Wedbush, took the CEO position. [15]

In 2011 it was ordered to pay a former bond trader $3.5 million in withheld compensation [16] for "morally reprehensible" conduct, and was ordered to pay an investor about $2.9 million after an arbitration panel decided that a customer's account had been "churned" and looted by a former Wedbush broker. [16]

On October 20, 2011 it was revealed that Wedbush securities is taking legal action against liquidnet inc for alleged violation of trade secrets. [17]

On June 18, 2019, Wedbush agreed to pay nearly $8.1 million to settle charges of improper handling of "pre-released" American depositary receipts (ADRs) under investigation of the U.S. Securities and Exchange Commission (SEC). Wedbush didn't admit or deny the investigation findings but agreed to pay disgorgement of more than $4.8 million, $800,000 in prejudgment interest and a penalty of $2.4 million [18] [19]

Awards

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References

  1. "Our Firm - Wedbush". www.wedbush.com.
  2. "PRESS RELEASE: Wedbush Securities Appoints Rich Jablonski and Gary Wedbush Co-Presidents - Wedbush". www.wedbush.com.
  3. "After More Than 50 Years in the Securities Business, RSF Resident Still Dedicated to the Work He Loves." Rancho Santa Fe Review, February 19, 2009, p. 8
  4. Hamilton, Walter. "Edward Wedbush's roof leaks, but his wallet doesn't". LA Times. Retrieved 25 October 2011.
  5. "After More Than 50 Years in the Securities Business, RSF Resident Still Dedicated to the Work He Loves." Rancho Santa Fe Review, February 19, 2009, p. 8.
  6. "He’s Still Smiling." Eugene Register-Guard, May 22, 1974, p. 2C.
  7. "Morgan Olmstead, Wedbush Call It a Definitive Deal." Los Angeles Times, September 22, 1988.
  8. “Wedbush Buys Lime Brokerage to Help Meet New Market-Access Rules” (SF Chronicle webpage link) <[ dead link ]> SF Gate, June 13, 2011
  9. 1 2 "Focus Lists Were Out of Focus in 2011's Turmoil" http://online.barrons.com/article/SB50001424052748703964504577193133014270486.html?mod=BOL_hpp_mag#articleTabs_article%3D1
  10. "Bitcoin Futures Trading - Wedbush Futures". Wedbush Futures.
  11. "Wedbush Futures". Wedbush Futures.
  12. "First Capitol Ag - MarketsWiki, A Commonwealth of Market Knowledge". www.marketswiki.com.
  13. "Kluis Commodity Advisors - Kluis Commodity Advisors". Kluis Commodity Advisors.
  14. "Lime Brokerage - Contact". Lime Brokerage.
  15. "Edward W. Wedbush, Founder of Wedbush Securities Passes Away at the Age of 87". Wedbush Securities. 2020-01-06. Retrieved 2020-04-08.
  16. 1 2 Hamilton, Walter. "Wedbush, Debbie Saleh: Wedbush and ex-broker ordered to pay investor $2.9 million". latimes.com. Retrieved 2011-09-01.
  17. Stempel, Jonathan. "Liquidnet sued by Wedbush over trade secrets". Reuters . Retrieved 24 October 2011.
  18. Spiezio, Caroline (June 18, 2019). "Wedbush Reaches $8.1M Settlement With SEC Over American Depositary Receipts Mishap". law.com. Retrieved 2019-07-04.
  19. "Wedbush to Pay More Than $8.1 Million for Improper Handling of ADRs". sec.gov. June 18, 2019. Retrieved 2019-07-04.
  20. “The Master Stock Pickers” <https://www.wsj.com/documents/graphics/documents/BestOnTheStreet2011/Best-on-the-Street-2011.html?mg=com-wsj#industry=AlternativeEnergy> Wall Street Journal, May 9, 2011. Retrieved June 13, 2011
  21. "Thomson Reuters - StarMine Analyst Awards". 25 July 2011.
  22. "The Best Brokerage Analysts Page 9 of 9". Forbes.com. Retrieved 2011-11-17.
  23. “Market Beaters” <http://online.barrons.com/article/SB50001424052970204177904576110092321663486.html#articleTabs_panel_article%3D1> Barron’s, June 12, 2011. Retrieved July 13, 2011.
  24. Racanelli, Vito J. (2009-08-24). "The Bull Resurfaces Just in Time - Barrons.com". Online.barrons.com. Retrieved 2011-11-17.