Siebert Financial Corp., together with its subsidiaries, operates as a diversified financial services company. The company provides a full range of brokerage and financial advisory services, including securities brokerage, investment advisory and insurance offerings, and corporate stock plan administration solutions. The company’s is characterized by building solid relationships with its clients through exceptional personal service and proven performance.
The company conducts various lines of b...
Siebert Financial Corp., together with its subsidiaries, operates as a diversified financial services company. The company provides a full range of brokerage and financial advisory services, including securities brokerage, investment advisory and insurance offerings, and corporate stock plan administration solutions. The company’s is characterized by building solid relationships with its clients through exceptional personal service and proven performance.
The company conducts various lines of business through its wholly-owned and majority-owned subsidiaries, such as Muriel Siebert & Co., LLC (MSCO) provides retail brokerage services. MSCO is a broker-dealer registered with the SEC under the Securities Exchange Act of 1934 (Exchange Act) and the Commodity Exchange Act of 1936, and member of the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange (NYSE), the Securities Investor Protection Corporation (SIPC), Euroclear, and the National Futures Association (NFA), and the Commodities Futures Trading Commission (CFTC).
Siebert AdvisorNXT, LLC (SNXT) provides investment advisory services. SNXT is a New York corporation registered with the SEC as a Registered Investment Advisor (RIA) under the Investment Advisers Act of 1940 (Advisers Act), and the CFTC.
Park Wilshire Companies, Inc. (PW) provides insurance services. PW is a Texas corporation and licensed insurance agency.
Siebert Technologies, LLC (STCH) provides technology development. STCH is a Nevada limited liability company.
RISE Financial Services, LLC, (RISE) is a Delaware limited liability company and a broker-dealer registered with the SEC, CFTC, FINRA, SIPC and NFA.
StockCross Digital Solutions, Ltd. (STXD) is an inactive subsidiary headquartered in Bermuda.
The company has branch offices throughout the U.S. and clients around the world.
Subsidiaries and Business Offerings
Muriel Siebert & Co., LLC
Muriel Siebert & Co., LLC provides online and traditional discount brokerage services to clients. In May 2022, MSCO received approval to expand its clearing services in the U.S. by acting as a correspondent clearing firm for institutional and online broker-dealers, registered investment advisors and other asset managers. Muriel Siebert & Co., LLC offers a wide range of products and services and is the primary subsidiary of Siebert.
Products and Services
MSCO offers a wide range of products and services, including self-directed trading; market making and fixed income investments; stock borrow / stock loan; equity compensation plans (Siebert Corporate Services); and wealth management / financial advice.
Brokerage and Related Services
The company offers a wide selection of quality investment services, including broker assisted trades and free online self-service features such as real time quotes, market data, and trading tools.
The company is a self-clearing broker-dealer and also clears with National Financial Services Corp. (NFS), a wholly-owned subsidiary of FMR, LLC.
Securities Finance and Market Making
The company operates its Securities Finance Group, which is a division that consists primarily of its stock borrow / stock loan and related services. The company’s management team brings decades of securities finance experience to this division. The company is committed to continue to expand its securities finance operations.
The company makes markets in multiple exchanges and in over 500 equity securities and fixed income products. The client service offerings within the company’s Market Making division has evolved with the capital markets and different trading strategies.
Corporate Services
The company is dedicated to helping publicly traded companies and their employees manage their equity compensation plans. Corporate services is a key component of the company’s business, and it leverages its technology partnerships to create a distinct advantage through FIX connection trading and real-time transaction reporting. Siebert Corporate Services primarily supports small and mid-cap public companies. Below are some key points of the company’s strategic outlook and initiatives within Siebert Corporate Services.
Strategic Shift and Business Evolution: Throughout 2023, Siebert Corporate Services has initiated a strategy shift, transitioning from transaction-based service delivery to focus on the overall client experience.
Investment in Innovation and Technology: The company has made a commitment to innovation and investment in technology that will provide efficiencies and accelerate its service-to-sales model. This strategic approach is critical in driving future growth in account conversion revenue.
Future Outlook: Siebert Corporate Services is developing an enhanced equity management solution to capture new market opportunities.
Independent Retail Execution Services
The company and its clearing firms monitor order flow in efforts to ensure that customers are getting the best possible trade executions. All equity orders are routed in a manner intended to afford the company’s customers the most favorable terms on all orders. The company also offers customers execution services through various market centers for an additional fee, providing customers access to numerous market centers before and after regular market hours. Customers may buy or sell fixed income securities, municipal bonds, corporate bonds, mortgage-backed securities, government sponsored enterprises, unit investment trusts, mutual funds, certificates of deposit, and other securities. These transactions are serviced by the company’s registered representatives.
Retail Customer Service
Customer service personnel, located in the company’s branch offices, are cross trained to assist with all clients’ needs for a reliable experience. The company uses a variety of customer relationship management systems that enable representatives in any location to review and respond to customers’ requests in a timely manner.
Retirement Accounts
The company offers customers a variety of self-directed retirement accounts. Each IRA, SEP IRA, ROTH IRA, and KEOGH account can be invested in a variety of qualified investments in a consolidated account. The company acts as its own custodian for retirement accounts and also utilizes NFS for IRA custody. The company offers self-directed retirement accounts and also has registered representatives dedicated to assisting clients in meeting their retirement goals.
Customer Financing
Customer margin accounts are carried whereby money is lent to customers for a portion of the market value of marginable securities held in the customer’s account. Margin loans are collateralized by these securities. Customers also may sell securities short in a margin account, subject to minimum equity and applicable margin requirements, and the availability of such securities to be borrowed. In permitting customers to engage in margin financing, short sale or any other transaction, the company assumes the risk of its customers’ failure to meet their obligations in the event adverse changes in the market affect the value of the margined securities positions. The company and NFS reserve the right to set margin requirements higher than those established by the Federal Reserve System.
The company has established policies with respect to maximum purchase commitments for new customers or customers with inadequate collateral to support a requested purchase. When transactions occur outside normal guidelines, the company monitors accounts closely until their payment obligations are completed.
Information and Communications Systems
The company relies heavily on its data technology platform and the platform provided by its clearing agents. These platforms offer interfaces to MSCO’s clearing service providers’ computing systems where all customer account records are kept and are accessible through the company’s data technology platform. The company’s systems also utilize browser-based access and other types of data communications. The company’s representatives use NFS systems, by way of its data technology platform, to perform daily operational functions, which include trade entry, trade reporting, clearing-related activities, risk management and account maintenance.
The company’s data technology platform offers services used in direct relation to customer activities, as well as support for corporate use. Some of these services include email and messaging, market data systems and third-party trading systems, business productivity tools and customer relationship management systems. The company’s data network is designed with redundancies in case a significant business disruption occurs.
To ensure reliability and to conform to regulatory requirements related to business continuity, the company maintains backup systems and backup data, leverages cloud-based technology, and has a full-time offsite disaster recovery site to ensure business continuity during a potential wide-spread disruption.
The company is consistently enhancing technology for both its customers, as well as its internal operations. The company is in the process of developing a new retail platform (Retail Platform) for its customers and integrating the trading platform into its operations.
Siebert AdvisorNXT, Inc.
Siebert AdvisorNXT, LLC offers customers the company’s proprietary robo-advisory technology that utilizes trading algorithms initially developed by STCH to create its robo-advisor. This technology provides clients with automated wealth management solutions intended to maximize portfolio returns based on specific risk tolerance. The platform utilizes Nobel Prize-winning Modern Portfolio Theory (MPT) to create optimal portfolios for each client. The company provides web-based tools to enable clients to monitor and interact with the robo-advisor’s automated portfolio manager application. The robo-advisor selects well-managed, exchange-traded funds (ETFs) and exchange-traded notes (ETNs) that represent the asset classes that provide clients the necessary risk-adjusted exposure given current market conditions.
Products and Services
The products and services offered by the company include managed portfolios; and separately managed accounts.
Park Wilshire Companies, Inc.
PW is a full-service insurance agency founded in 2010. Through PW, the company’s product offerings include various insurance products, such as fixed annuities and property and casualty insurance.
Products and Services
The products and services offered by PW include fixed annuities, personal insurance, property and casualty insurance, natural disaster insurance, and life and disability.
Siebert Technologies, LLC
STCH is a technology company through which the company is expanding its products and services and it plans to use this subsidiary for future fintech opportunities.
RISE Financial Services, LLC
During 2022, RISE was a prime broker focused on providing institutional quality services to hedge funds and other institutional investors.
Regulations
MSCO and RISE are registered as broker-dealers with the SEC. MSCO is a member of the NYSE and FINRA, and RISE is a member of FINRA. Much of the regulation of broker-dealers has been delegated to self-regulatory organizations (SROs), principally FINRA, which is MSCO’s and RISE’s primary regulator with respect to financial and operational compliance. MSCO is registered as a broker-dealer in 50 states, the District of Columbia, and Puerto Rico, and RISE is registered as a broker-dealer in 7 states and territories. These regulations affect the company’s business operations and impose capital, client protection, and market conduct requirements, among others. As a registered broker-dealer and FINRA member organization, MSCO and RISE are required by federal law to belong to SIPC which provides, in the event of the liquidation of a broker-dealer, protection for securities held in customer accounts held by the firm of up to $500,000 per customer, subject to a limitation of $250,000 on claims for cash balances. MSCO is also authorized by the Municipal Securities Rulemaking Board (MSRB) to affect transactions in municipal securities on behalf of its customers and has obtained certain additional registrations with the SEC and state regulatory agencies necessary to permit it to engage in certain other activities incidental to its brokerage business. SNXT is registered with the SEC as an investment adviser pursuant to the Advisers Act. The company conducts financial services activities that are subject to the Bank Secrecy Act of 1970 (BSA), as amended by the USA PATRIOT Act of 2001 (PATRIOT Act), which require financial institutions to develop and implement programs reasonably designed to achieve compliance with these regulations. As FINRA member firms, MSCO and RISE are subject to FINRA rules requiring written anti-money laundering programs. In addition, the company is subject to U.S. sanctions programs administered by the Office of Foreign Assets Control.
As registered broker-dealers, MSCO and RISE are subject to the requirements of the Exchange Act and the rules thereunder relating to broker-dealers, such as minimum net capital requirements under the SEC Uniform Net Capital Rule (Rule 15c3-1) and segregation of fully paid client funds and securities under the SEC Customer Protection Rule (Rule 15c3-3), administered by the SEC and FINRA. To the extent they are applicable to it, the company must comply with federal and state information-related laws and regulations in the United States, including the Gramm-Leach-Bliley Act of 1999, SEC Regulation S-P, the Fair Credit Reporting Act of 1970, as amended, and Regulation S-ID (the Identity Theft Red Flags Rule), as well as the California Consumer Protection Act and further potential federal and state requirements.
History
Siebert Financial Corp. was incorporated in 1934.
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