Quick & Reilly Unit Targets Banks Through Internet Trading System

U.S. Clearing Corp., a securities clearing firm bent on winning banking clients, said Monday it will offer smaller banks software to give their customers Internet access to portfolios.

The software, targeting community and midsize banks, is an off-the-shelf product that banks can launch in a matter of weeks. QuickWay Net gives client banks access to portfolios, market and company news, and stock quotes. The product is also available to brokerages.

"Compared to the requirements for a firm to independently develop such a capability, our Internet trading system can be put in place for a fraction of the investment, with turnaround time months faster than any previously available alternative," said Leslie C. Quick 3d, president and chief operating officer of U.S. Clearing.

QuickWay Net is a mainstay at Quick & Reilly Inc., the Palm Beach, Fla.- based discount brokerage firm that owns U.S. Clearing Corp. The software was developed by U.S. Clearing and Reality Online Inc., a Reuters subsidiary.

"It's not terribly uncommon for a clearing operation" to sell software of this kind, said analyst Michael Flanagan, principal of Financial Services Analytics, Jenkintown, Pa.

But it is clearly part of a strategy by the clearing house to target banks.

U.S. Clearing services about 315 brokerages and banks with a total of 1.5 million customer accounts, Mr. Flanagan said. Its largest competitors for brokerage and bank clients are the Pershing clearing division of Donaldson, Lufkin & Jenrette Securities Corp., Jersey City and National Financial Services, a subsidiary of Fidelity Investments, Boston.

Although U.S. Clearing's volume of transactions is less than half those of its two largest competitors, it has more banking clients-110, versus 90 for National Financial and 60 for Pershing. The firm also helps banks build sales forces. Last year, the Independent Bankers Association of America named U.S. Clearing a preferred provider of discount brokerage services to its 5,000 community bank members.

QuickWay Net "is evidence of our commitment to move beyond the traditional role of clearing firm and align our growth with that of our clients," said Mr. Quick.

It's also a way to help Quick & Reilly, Mr. Flanagan said.

"A clearing operation is an arm of a brokerage, so this is a positive point," he said.

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