Wedbush Securities

Last updated
Wedbush Securities
Industry Financial Services
FoundedLos Angeles, California
FounderEdward W. Wedbush
Headquarters1000 Wilshire Boulevard
Los Angeles, California
Key people
  • Co-Presidents:
  • Rich Jablonski
  • Gary L. Wedbush
  • EVPs:
  • Dan E. Billings
  • Bob Fitzsimmons
  • Donald W. Hultgren
  • Danny Nadalalicea
  • R. James Richards
ProductsInvestment Banking
Fixed Income
Capital Markets
Equity Research
Correspondent Services
Wealth Management
Futures Commission Merchant (FCM)
Commodity Trading Advisor (CTA)

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

Financial services economic service provided by the finance industry

Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, individual managers and some government-sponsored enterprises. Financial services companies are present in all economically developed geographic locations and tend to cluster in local, national, regional and international financial centers such as London, New York City, and Tokyo.



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.

New York Stock Exchange American stock exchange

The New York Stock Exchange is an American stock exchange located at 11 Wall Street, Lower Manhattan, New York City, New York. It is by far the world's largest stock exchange by market capitalization of its listed companies at US$30.1 trillion as of February 2018. The average daily trading value was approximately US$169 billion in 2013. The NYSE trading floor is located at 11 Wall Street and is composed of 21 rooms used for the facilitation of trading. A fifth trading room, located at 30 Broad Street, was closed in February 2007. The main building and the 11 Wall Street building were designated National Historic Landmarks in 1978.

Depository Trust & Clearing Corporation company

The Depository Trust & Clearing Corporation (DTCC) is an American post-trade financial services company providing clearing and settlement services to the financial markets. It performs the exchange of securities on behalf of buyers and sellers and functions as a central securities depository by providing central custody of securities.

Clearing (finance) all activities from the time a commitment is made for a financial transaction until it is settled

In banking and finance, clearing denotes all activities from the time a commitment is made for a transaction until it is settled. This process turns the promise of payment into the actual movement of money from one account to another. Clearing houses were formed to facilitate such transactions among banks.

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.

The Nasdaq Stock Market is an American stock exchange. It is the second-largest stock exchange in the world by market capitalization, behind only the New York Stock Exchange located in the same city. The exchange platform is owned by Nasdaq, Inc., which also owns the Nasdaq Nordic and Nasdaq Baltic stock market network and several U.S. stock and options exchanges.

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.

In 2011 it was ordered to pay a former bond trader $3.5 million in withheld compensation [15] 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. [15]

On October 20, 2011 it was revealed that Wedbush securities is taking legal action against liquidnet inc for alleged violation of trade secrets. [16]

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 [17] [18]


Related Research Articles

Morgan Stanley U.S investment bank

Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City. With offices in more than 42 countries and more than 55,000 employees, the firm's clients include corporations, governments, institutions and individuals. Morgan Stanley ranked No. 67 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.

TradeStation Group, Inc. is the parent company of online securities and futures brokerage firms and trading technology companies. It is headquartered in Plantation, Florida, and has offices in New York; Chicago; Richardson, Texas; London; Sydney; and Costa Rica. TradeStation is best known for the technical analysis software and electronic trading platform it provides to the active trader and certain institutional trader markets that enable clients to design, test, optimize, monitor, and automate their own custom equities, options, and futures trading strategies. TradeStation Group was a Nasdaq GS-listed company from 1997-2011, until acquired by Monex Group, a Tokyo Stock Exchange listed parent company of one of Japan's leading online securities brokerage firms.

An exchange-traded fund (ETF) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur. Most ETFs track an index, such as a stock index or bond index. ETFs may be attractive as investments because of their low costs, tax efficiency, and stock-like features.

Front running, also known as tailgating, is the prohibited practice of entering into an equity (stock) trade, option, futures contract, derivative, or security-based swap to capitalize on advance, nonpublic knowledge of a large ("block") pending transaction that will influence the price of the underlying security. In essence, it means the practice of engaging in a Personal Securities Transaction in advance of a transaction in the same security for a client's account. Front running is considered a form of market manipulation in many markets. Cases typically involve individual brokers or brokerage firms trading stock in and out of undisclosed, unmonitored accounts of relatives or confederates. Institutional and individual investors may also commit a front running violation when they are privy to inside information. A front running firm either buys for its own account before filling customer buy orders that drive up the price, or sells for its own account before filling customer sell orders that drive down the price. Front running is prohibited since the front-runner profits from nonpublic information, at the expense of its own customers, the block trade, or the public market.

Bache & Co.

Bache & Company was a securities firm that provided stock brokerage and investment banking services. The firm, which was founded in 1879, was based in New York, New York.

Options Clearing Corporation

Options Clearing Corporation (OCC) is a United States clearing house based in Chicago. It specializes in equity derivatives clearing, providing central counterparty (CCP) clearing and settlement services to 15 exchanges. Started by Wayne luthringshausen and carried on by Michael Cahill, trust in the company was built. Instruments include options, financial and commodity futures, security futures and securities lending transactions.

A. G. Edwards

A.G. Edwards, Inc. was an American financial services holding company; its principal wholly owned subsidiary was A.G. Edwards & Sons, Inc., which operated as a full-service securities broker-dealer in the United States and Europe. The firm was acquired by Wachovia Securities, which later was acquired by Wells Fargo Advisors. The firm provided securities and commodities brokerage, investment banking, trust services, asset management, financial and retirement planning, private client services, investment management, and other related financial services to individual, governmental, and institutional clients.

Linda Bradford Raschke American financier

Linda Bradford Raschke (/'ræʃki/) is an American commodities and futures trader. She is President of LBRGroup, Inc., a registered CTA and money management firm, and President of LBR Asset Management, a CPO.

A commodity broker is a firm or an individual who executes orders to buy or sell commodity contracts on behalf of the clients and charges them a commission. A firm or individual who trades for his own account is called a trader. Commodity contracts include futures, options, and similar financial derivatives. Clients who trade commodity contracts are either hedgers using the derivatives markets to manage risk, or speculators who are willing to assume that risk from hedgers in hopes of a profit.

Richard Donchian American businessman

Richard Davoud Donchian was an Armenian-American commodities and futures trader, and pioneer in the field of managed futures.

Ladenburg Thalmann

Ladenburg Thalmann Financial Services, a NYSE MKT-listed company, is a diversified financial services company with two primary business lines: one is independent brokerage and advisory, and the other is investment banking and capital markets. More specifically, the company is engaged in investment banking, equity research, institutional sales and trading, independent brokerage and advisory services, asset management services and trust services through its principal subsidiaries, Ladenburg Thalmann & Co. Inc., Securities America, Securities Service Network, LLC., Investacorp, Inc., Triad Advisors, LLC, Ladenburg Thalmann Asset Management Inc. and Premier Trust, Inc. It is based in Miami, Florida.

Thomas Peterffy American businessman

Thomas Peterffy is a Hungarian-born American billionaire businessman. He is the founder, chairman, CEO, and the largest shareholder of Interactive Brokers. Peterffy worked as an architectural draftsman after emigrating to the United States, and later became a computer programmer. In 1977, Peterffy purchased a seat on the American Stock Exchange and played a role in developing the first electronic trading platform for securities. According to Forbes he is the richest Hungarian, and the richest person in Florida.

The National Market System (NMS) is the national system for trading equities in the United States.

Silver Thursday

Silver Thursday was an event that occurred in the United States in the silver commodity markets on Thursday, March 27, 1980, following the attempt by brothers Nelson Bunker Hunt, William Herbert and Lamar Hunt to corner the silver market. A subsequent steep fall in silver prices led to panic on commodity and futures exchanges.

MF Global, formerly known as Man Financial, was a major global financial derivatives broker, or commodities brokerage firm that went bankrupt in 2011. MF Global provided exchange-traded derivatives, such as futures and options as well as over-the-counter products such as contracts for difference (CFDs), foreign exchange and spread betting. MF Global Inc., its broker-dealer subsidiary, was a primary dealer in United States Treasury securities. A series of perceived liquidity problems and large fines and penalties dogged MF Global starting in 2008, and led to its bankruptcy in 2011.

FXCM, also known as Forex Capital Markets, is a retail broker for trading on the foreign exchange market. FXCM allows people to speculate on the foreign exchange market and provides trading in contract for difference (CFDs) on major indices and commodities such as gold and crude oil. It is based in London.

Andrew Edward Left is an activist short seller, author and editor of the online investment newsletter Citron Research, formerly Under the name Citron Research, Left publishes reports on firms that he claims are overvalued or are engaged in fraud. Left is known for advising investors on short selling and has often appeared on various media outlets such as CNBC and Bloomberg to talk about his opinions on stocks. In 2017, Left was called 'The Bounty Hunter of Wall Street' by The New York Times.

Interactive Brokers U.S.-based online discount brokerage firm

Interactive Brokers LLC (IB) is a U.S.-based brokerage firm. It operates the largest electronic trading platform in the U.S. by number of daily average revenue trades. The company brokers stocks, options, futures, EFPs, futures options, forex, bonds, and funds.

Securities market participants (United States)

Securities market participants in the United States include corporations and governments issuing securities, persons and corporations buying and selling a security, the broker-dealers and exchanges which facilitate such trading, banks which safe keep assets, and regulators who monitor the markets' activities. Investors buy and sell through broker-dealers and have their assets retained by either their executing broker-dealer, a custodian bank or a prime broker. These transactions take place in the environment of equity and equity options exchanges, regulated by the U.S. Securities and Exchange Commission (SEC), or derivative exchanges, regulated by the Commodity Futures Trading Commission (CFTC). For transactions involving stocks and bonds, transfer agents assure that the ownership in each transaction is properly assigned to and held on behalf of each investor.

Goldstein, Samuelson, Inc. was a Los Angeles based commodities options brokerage firm. It was placed in receivership in 1973 after it was discovered that the firm was a Ponzi scheme.


  1. "Our Firm - Wedbush".
  2. "PRESS RELEASE: Wedbush Securities Appoints Rich Jablonski and Gary Wedbush Co-Presidents - Wedbush".
  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"
  10. "Bitcoin Futures Trading - Wedbush Futures". Wedbush Futures.
  11. "Wedbush Futures". Wedbush Futures.
  12. "First Capitol Ag - MarketsWiki, A Commonwealth of Market Knowledge".
  13. "Kluis Commodity Advisors - Kluis Commodity Advisors". Kluis Commodity Advisors.
  14. "Lime Brokerage - Contact". Lime Brokerage.
  15. 1 2 Hamilton, Walter. "Wedbush, Debbie Saleh: Wedbush and ex-broker ordered to pay investor $2.9 million". Retrieved 2011-09-01.
  16. Stempel, Jonathan. "Liquidnet sued by Wedbush over trade secrets". Reuters . Retrieved 24 October 2011.
  17. Spiezio, Caroline (June 18, 2019). "Wedbush Reaches $8.1M Settlement With SEC Over American Depositary Receipts Mishap". Retrieved 2019-07-04.
  18. "Wedbush to Pay More Than $8.1 Million for Improper Handling of ADRs". June 18, 2019. Retrieved 2019-07-04.
  19. “The Master Stock Pickers” <> Wall Street Journal, May 9, 2011. Retrieved June 13, 2011
  20. "Thomson Reuters - StarMine Analyst Awards". 25 July 2011.
  21. "The Best Brokerage Analysts Page 9 of 9". Retrieved 2011-11-17.
  22. “Market Beaters” <> Barron’s, June 12, 2011. Retrieved July 13, 2011.
  23. Racanelli, Vito J. (2009-08-24). "The Bull Resurfaces Just in Time -". Retrieved 2011-11-17.