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Ceros Financial in the News

Rockville, Maryland, June 24, 2010-

Ceros recently gained industry recognition for providing execution and brokerage services for the active RIA. published the following article by Brooke Southall:

Ceros Financial hangs a ‘welcome’ sign out for RIAs who trade actively

The former Rydex RIA unit is starting new life under German ownership

Ever since Elliot Spitzer made market timers of mutual funds look like robbers of orphan funds, there has been a pall cast over the idea of trading-intensive strategies. Most advisors trade very infrequently because they simply don’t believe it’s possible to time the market and because the extra trading adds to costs.


After Mr. Spitzer forced major mutual fund companies to pay big fines for market timing, even asset custodians and wirehouses have been cautious about serving advisors who favored trading.


That’s left a gap in the market where Ceros Financial Services, Inc. is now building a business. The Rockville, Md.-based company serves advisors that want to use active trading strategies on behalf of clients. It has built itself into a niche player with about 100 RIAs managing a combined $3.8 billion of assets, up from 95 clients with $3 billion of assets last year.


“Our prospects are often — to manage clients’ money better — early adopters of new investment products and in the past two years, that’s been a very good way of managing money,” says Catherine Ayers-Rigsby, managing director of Ceros. “We are very familiar with different types of investment product. When someone wants to use a new product, we don’t shy away from it. We research it and say: ‘Let’s go forward.’”


Active Trading Advocates

Not only is Ceros willing to facilitate active management strategies; it actually advocates for them. Many RIAs that use an intensive trading strategy belong to the National Association of Active Investment Managers. Ceros is a big sponsor of that organization. It has 15 employees dedicated to RIAs.


“We don’t consider active management risky, and [our assets are] 80% fee-based so our advisors have no incentive to pursue active strategies except to better manage the clients’ money,” says Ms. Ayers-Rigsby.


If Ceros is unfamiliar to you, it may be because the company existed under the Rydex brand name since its 2002 founding. It was acquired by Frankfurt, Germany-based Ceros in 2009. Rydex had founded it as a place where trading-minded RIAs could feel comfortable trading in and out of its funds.


“They truly understand active investment strategies and don’t have the same holding restrictions that other custodians have,” says John Rothe, president of the Rothe Financial Group in Tysons Corner, Va. “I also like the fact that their relationship with Rydex Funds allows advisors to trade Rydex funds intraday via Fidelity’s AdvisorChannel.”


About Ceros


Ceros Financial Services, Inc., a registered broker-dealer, member FINRA/SIPC, is part of the Ceros group, which maintains presences in Frankfurt, Munich, and Limburg, Germany; Lucerne, Switzerland; and Istanbul, Turkey, from which it offers brokerage and custody, investment management and mutual fund distribution.


Ceros is a full-service brokerage platform and consultative partner to investment management firms.  RIA’s and hybrid advisors rely on Ceros for flexible, powerful and comprehensive back office systems and services. Ceros takes an active, consultative approach to helping advisors grow their businesses, offering direct access to trade stocks, bonds, options, ETFs, equity, commodities and futures trading.

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