JonesTrading Institutional Services, which provides institutions with block trading in securities and derivative products, capital markets services, independent research and commission management, is to acquire Conifer Securities and manage the business as a wholly owned subsidiary.

The Conifer Group will obtain an equity stake in JonesTrading and Jack McDonald, president and chief executive of The Conifer Group, will join JonesTrading's board of directors.  The transaction is expected to close in the fourth quarter of 2012.

The partnership is designed to integrate Conifer Securities' clients. JonesTrading will be able to offer prime brokerage services and the capabilities of JonesTrading's growing adviser services business will be broadened. 

The Conifer Group intends to leverage the strength of JonesTrading for its expanding fund administration and middle office services for hedge funds and investment managers.

"As we looked at the landscape of growth opportunities for JonesTrading to serve our clients, we recognised the increased demand for a broader and deeper range of quality high touch services," says William (Packy) Jones (pictured), chairman and chief executive of JonesTrading. "The businesses of JonesTrading and Conifer Securities are complementary and the arrangement between our firms will not only make our respective clients' trading more effective but will add value to the entire investment cycle. Jack McDonald will bring to our board expertise, insight, and experience which are critical to effectively building our franchise through the capabilities we will now provide."

"This partnership will provide a comprehensive and powerful set of tools that will enhance the superior trade execution services both firms currently provide," says McDonald. "Separately Conifer will continue to grow its fund administration and middle office services through high quality service and leading technology, strengthening our market leading capabilities at an exciting time of industry expansion. I look forward to working with the JonesTrading team and contributing to the board's continued business development initiatives."