Keycorp has set up its own clearing firm in a step to control securities processing costs, its brokerage chief said in a recent interview.
Jack Kopnisky, president of Key Investments Inc., said the new unit, Key Clearing Corp., began operations April 7. Previously, Keycorp used National Financial Corp., a subsidiary of Fidelity Investments, to clear brokerage trades.
"We believe we can create a more flexible system internally and operate in the most effective way," Mr. Kopnisky said.
The Cleveland-based banking company's brokerage arm handles $2 billion in trades a year. That includes about $1 billion in bonds, with the remaining $1 billion split about evenly among stocks, annuities, and mutual funds.
Though only a handful of big banks now clear their own trades, Mr. Kopnisky said he expects more banks to do so in coming years.