TD Bank to buy U.S. broker-dealer Albert Fried

Tue Sep 13, 2016 12:30pm EDT
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By John Tilak

TORONTO (Reuters) - Canadian lender Toronto-Dominion Bank's (TD.TO: Quote) capital markets division said on Tuesday it plans to acquire Albert Fried & Co, a New York-based broker-dealer, to expand its presence in the U.S. prime brokerage sector. TD Securities has been boosting its reach in the United States in recent years by adding people and increasing coverage of sectors.

The lender's U.S. capital markets strategy has been to focus on large multinational clients, as well as sectors such as technology, media, telecommunications, energy and utilities.

TD, which did not disclose financial terms of the deal, expects to target hedge funds with its new services.

"With the prime brokerage acquisition, we have the opportunity to expand and service institutional clients more appropriately," Glenn Gibson, the vice chair and U.S. head of TD Securities, said in an interview.

"There is this broad appeal for clients to diversify their broker relationships, specifically related to the prime brokerage business," he added.

A 97-year-old firm that was founded after World War I, Albert Fried offers services in prime brokerage, trading and commission management.

David Santina, managing director of equities at TD Securities U.S., will lead the U.S. prime brokerage unit.

"Developing an integrated prime brokerage business really fills a niche for us in our U.S. product set," Santina said.   Continued...

A Toronto-Dominion Bank (TD) sign is seen outside of a branch in Ottawa, Ontario, Canada, May 26, 2016. REUTERS/Chris Wattie