Full-service local stockbroking firm, Prescient Securities (PSec), has expanded its global footprint into 81 countries, offering its clients the ability to trade seamlessly and cost-effectively across Africa, Asia, Europe and the US.
CEO Christopher Craddock says the expansion of its offering into global equity markets will add to the stockbroker’s already comprehensive range of local services by enabling clients to maximise the management of their foreign equity exposure in a wide range of jurisdictions.
PSec is a full-service, independent institutional stockbroker that offers competitively priced, efficient and seamless execution and research across all the South African asset classes (equities, derivatives, currencies and fixed income) and execution-only access to 81 global equity markets. Craddock says the business’s mission is to provide innovative research and to be a safe pair of hands for its clients, with its repeatable process focused on securing the best possible outcomes locally and globally.
On taking what could be considered as a bold move to launch a new line of business during the COVID-19 pandemic, Craddock says the business is in a robust and stable position and thus well-positioned to build its global offering in response to healthy client appetite for global equity exposure.
“We have operated for 21 years and are still investing in our business. We believe in the future of the South African market and are committed to remaining relevant in a tough environment. We are here to stay through thick and thin and are committed to remaining ahead of the curve in our industry.” He adds that he would like to see investors support local companies who have the best interests of the South African financial market and their clients at heart.
The global execution-only services now offered by the stockbroker have been made possible by taking advantage of technology. In building its global reach across so many countries, PSec has partnered with several technology platforms and leading global market participants that are best positioned to offer the most competitive pricing and best execution capabilities. Says Craddock: “We have established relationships with key brokers with an on-the-ground presence in Africa and Asia who will execute the transactions on clients’ behalf, in addition to best-of-breed technology partners allowing access to more developed markets.”
PSec has built up a strong track record domestically and is confident the global offering will take the business to another level.
The company differs from many of the other large stockbroking businesses in that it does not operate off a balance sheet. Craddock says: “We don’t engage in proprietary trading and don’t have to take into account corporate client sensitivities when trading. That allows us to focus purely on achieving best execution at competitive prices for our clients and offering them innovative, independent research. Also, we have the necessary capital adequacy to manage our clients’ larger orders!”
It is one of the few black-owned local stockbroking companies with a Level 1 B-BEE rating and thus contributes to its clients’ investment in transformation. Craddock adds: “We believe there is a place in the market for a business you can trust and partner with, and we want to be that partner to our clients.” He adds that as a local company that is fully committed to transformation and in it for the long haul.
The business has been built on seven pillars: equity trading, fixed interest trading & research, derivative trading & research, fundamental equity research, alpha lab research, operational expertise and PSec GEARS.
PSec has a long history of being recognised at the annual FM Ranking the Analysts awards for its fundamental equity research, derivative analysis, quantitative analysis, risk management, as well as the innovative research generated by its Alpha Labs. Odwa Sihlobo, who heads up the Alpha Labs unit, was recognised in 2019 FM Analyst of the Year Awards as the Young Analyst of the Year in the non-equity research category. Operationally, the stockbroker is similarly recognised for its efficiency and best execution in the derivative and fixed income dealing categories.
PSec clients also get access to the company’s proprietary GEARS platform, which offers clients a suite of tools and templates to accurately price South African financial instruments, including derivatives, across the local market.
