On January 11, 2013, Penson Worldwide ("Penson"), a clearing and settlement provider for the investment trading industry, filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware. In papers filed with the Bankruptcy Court, Penson describes itself as a company that provides "execution, clearing, custody, settlement, and technology products and services to financial firms." See Declaration of Bryce Engel in Support of Chapter 11 Petitions (hereinafter, the "Decl." ), at *3. After its start in 1995, Penson grew to become one of the largest independent securities clearing brokers in the United States. Through its subsidiaries, Penson also became one of the largest independent clearing brokers in Canada, Australia and the United Kingdom. Id.
Reasons for Bankruptcy