Grace Financial Group LLC, a Long Island, New York-based broker-dealer serving hedge funds and investment advisers, asked a judge to order a Penson Worldwide Inc. unit to continue to service trades under an agreement between the companies.
Grace Financial, based in Southampton, filed papers today in New York State Supreme Court in Manhattan seeking an injunction preventing Penson Financial Services Inc. from terminating the agreement or changing any of the services it provides, as it disclosed May 25 it would do, according to Grace.
Penson Financial shouldn’t be allowed to stop settling and clearing trades and acting as a custodian for securities traded on local markets outside the U.S., Grace said. An interruption of the service would result in customers who invest to leave for other firms, it said.
“More than that, petitioner will be irreparably injured due to an inability to attract new customers to this now nonexistent business,” lawyers for Grace said in the court papers. “The loss of an entire business line is not readily compensable in money damages.”
Amanda McCutcheon, a spokeswoman for Penson Financial Services, the unit of Dallas-based Penson Worldwide, didn’t immediately respond to voice-mail and e-mail messages seeking comment on today’s filing.
The case is Grace Financial Group LLC v. Penson Financial Services Inc., 651872/2012, New York State Supreme Court (Manhattan).