By Andrei Skvarsky.
BCS Global Markets, a key Russian securities broker, will officially launch business in North America within a couple of weeks after a current transaction in which it is buying out Alforma Capital Markets, a US subsidiary of Russia’s Alfa-Bank, is due to be completed.
The US Financial Industry Regulatory Authority (FINRA) has just given the go-ahead to the deal, BCS Global Markets, which is a division of Russia’s BCS Financial Group and the largest securities broker on the Moscow Exchange, said in a statement.
The purchase of the New York-based broker-dealer will result in the emergence of a company to be named BCS Americas Inc., which will provide brokerage and investment services to US-based institutional investors seeking to access the Russian securities market.
Trades carried out by BCS Global Markets on the Moscow Exchange cover 25% of securities across all asset classes traded on the bourse. The Alforma buyout deal “has already received positive interest from local institutions, bearing witness to the growing appetite for Russian products in the US,” BCS Global Markets said.
“US-based institutions are the leading international investors in both emerging and Russian markets. The launch of BCS Global Markets’ operations in the US is confirmation of the Group’s ambitions to further develop investment from the region, and continue to tap into this exciting market,” said Luis Saenz, head of equity sales and trading at BCS Global Markets.
Said BCS Global Markets chief executive Roman Lokhov:
“Amidst a challenging global backdrop, we have been granted regulatory approval from FINRA. This development is testament to how, in the past three years, BCS Global Markets has become one of the leading financial institutions in Russia through strategic investment in market expertise, products and infrastructure. As a result, we are now perfectly suited to bring these operational benefits to the US market.”
BCS Global Markets has an office in London in addition to its headquarters in Moscow.