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-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)
Website wedbush.com
wedbushfutures.com
kluiscommodities.com

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.

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.

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]

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. 1 2 Hamilton, Walter. "Wedbush, Debbie Saleh: Wedbush and ex-broker ordered to pay investor $2.9 million". latimes.com. 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". law.com. Retrieved 2019-07-04.
  18. "Wedbush to Pay More Than $8.1 Million for Improper Handling of ADRs". sec.gov. June 18, 2019. Retrieved 2019-07-04.
  19. “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
  20. "Thomson Reuters - StarMine Analyst Awards". 25 July 2011.
  21. "The Best Brokerage Analysts Page 9 of 9". Forbes.com. Retrieved 2011-11-17.
  22. “Market Beaters” <http://online.barrons.com/article/SB50001424052970204177904576110092321663486.html#articleTabs_panel_article%3D1> Barron’s, June 12, 2011. Retrieved July 13, 2011.
  23. Racanelli, Vito J. (2009-08-24). "The Bull Resurfaces Just in Time - Barrons.com". Online.barrons.com. Retrieved 2011-11-17.