Securities Subsidiary


Securities Subsidiary
A company that is controlled by a large bank or financial holding company. These firms are in the business of underwriting commercial paper and other securities that will then be sold to investors. In certain regions, security subsidiaries can conduct full brokerage operations.

Securities subsidiaries were created when the Federal Reserve Board allowed securities firms owned by banks to begin dealing in commercial paper and municipal fixed-income securities on a limited basis. They were permitted to expand their operations into underwriting stocks and corporate bonds in 1990. Their underwriting was initially limited to 5% of bank revenue and was later raised to 25% before the restrictions were completely abolished in 1999.

Security subsidiaries are currently being established around the world.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Subsidiary Bank — A type of foreign bank that is incorporated in the host country but is considered to be owned by a foreign parent bank. The subsidiary bank only needs to operate under the host country s regulations. One of the drawbacks of operating a subsidiary …   Investment dictionary

  • Securities offering — A securities offering (or funding round or investment round) is a discrete round of investment, by which a business or other enterprise raises money to fund operations, expansion, a capital project, an acquisition, or some other business… …   Wikipedia

  • Securities Industry Automation Corporation — The Securities Industry Automation Corporation (SIAC) [http://www.siac.com/] is a subsidiary of the New York Stock Exchange. Its purpose is to provide technical services for the exchanges themselves, members and other financial institutions. In… …   Wikipedia

  • Australian Securities Exchange — ASX redirects here. For other uses, see ASX (disambiguation). Australian Securities Exchange …   Wikipedia

  • Mizuho Securities — headquarters in Ōtemachi, Tokyo Mizuho Securities Co., Ltd. (みずほ証券株式会社, Mizuho Shōken Kabushiki gaisha …   Wikipedia

  • China Jianyin Investment Securities — Co., Ltd (中国建银投资证券有限责任公司), also known as 中投证券, is a securities company subsidiary of China Central Huijin, was established on 29 September, 2005, and registered in Shenzhen with a capital of RMB 1.5 billion. Its asset under management has grown… …   Wikipedia

  • Commonwealth Securities — Type Subsidiary Traded as ASX: CBA Industry …   Wikipedia

  • Terra Securities — Infobox Company company name = Terra Securities ASA company company type = Subsidiary foundation = 1997 location = Oslo, Norway key people = Svein Erik Nordang (CEO) Gabriel Block Watne (Chairman) area served = Norway industry = Financial… …   Wikipedia

  • International Securities Exchange — Unreferenced|date=July 2007Infobox Company company name = International Securities Exchange company key people = Gary Katz, CEO company type = Exchange foundation = May 26, 2000 location = New York products = Options, Stock, Alternative Markets,… …   Wikipedia

  • Terra Securities scandal — [ Terra Securities] The Terra Securities scandal was a scandal that became public in November 2007 and involved highly speculative investments by eight municipalities of Norway in various hedge funds in the United States bond market.Mark Landler …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.