Rosenblatt Securities Expands International Partnerships (and Analysts)

Rosenblatt Securities, a New York institutional brokerage, has been quietly adding reciprocal arrangements with emerging and frontier market brokerage firms to increase its trading relationships and research coverage.  Rosenblatt currently has arrangements with fifteen brokers, surpassing Jefferies but still far short of Auerbach Grayson’s network.  The firm also hired two tech analysts as it expands its proprietary research offering.

Changes to international network

Since announcing its tenth partnership in 2016 – with Vietnamese broker Viet Dragon Securities –Rosenblatt has terminated relationships with four brokerages while adding nine new relationships.

Brokers jettisoned include China Merchants Securities, Attijari Intermediation in Morocco and Global Investment House in Kuwait while Old Mutual Securities in Kenya was replaced with Nairobi-based Sterling Capital.  Coverage of the Middle East and North Africa is now provided by CI Capital, an arm of Egyptian bank Commercial International Bank.  Israeli market access is provided by Excellence Nessuah.

More new additions

Asian brokerages added were UniCap Securities in Bangladesh, John Keells in Sri Lanka and JS Global Capital in Pakistan.  Croatian broker InterCapital provides frontier European coverage, while National Bank of Greece, the second largest Greek bank by assets, is Rosenblatt’s Hellene partner. Rosenblatt also has a link with UK small cap broker Whitman Howard.

In addition to the new brokerage relationships, the firm has also hired an international securities trader and two international research salespeople: Alice Petrofsky previously of Cornerstone Capital Group and UBS and David Sohnen previously with Morgan Stanley.

The core function of the partnerships is trading access to local markets as well as corporate access, distribution of research and capital markets transactions.  Rosenblatt says its international partners employ 100+ analysts in 27 countries covering over 1000 stocks.

Analyst hires

Rosenblatt hired Ryan Koontz, co-founder of independent boutique Inflection Point Research, as a telecommunications analyst covering communications and networking stocks. Koontz co-founded Inflection Point in 2004 with Michael Fox who continues to run the firm after Koontz joined Woodside Capital in 2011.

Former buy-side and sell-side analyst Mark Zgutowicz is also joining Rosenblatt to cover internet and media stocks.  Zgutowicz most recently worked as a technology analyst for Cornerstone Capital Management and as a consultant to venture capital firm Loup Ventures run by his former Piper Jaffray colleague Gene Munster.  The new hires bring Rosenblatt’s TMT research team to five analysts, not including the former Evercore analyst Chris Allen who covers exchanges, e-brokers and other market structure-related names.

Rosenblatt is the largest ‘floor broker’ on the NYSE, with an ‘upstairs’ agency program trading desk.  It includes a fintech-focused investment banking effort and a market structure/transaction analytics team.   The firm has been expanding its research offerings ever since hiring the personnel of technology research boutique Wedge Partners in 2014.

Our Take

Rosenblatt’s network of fifteen international brokers exceeds Jefferies’ ten relationships, which are all focused on Asian brokerages.  Last month Jefferies announced a deal with Bank of China’s securities affiliate.   Auerbach Grayson, which pioneered the international partnership strategy in 1993, has the most extensive network with 125 non-US brokers, most recently forging an alliance with Geneva-based Mirabaud Securities.  London-based rival First Frontier Capital has experienced turnover, with co-CEO Martin Gollner moving to BlueMatrix and his former colleague Richard Adley joining London-based Rostam Capital.