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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2006
AUERBACH GRAYSON & COMPANY, INC.
Today, the Auerbach Grayson
network extends to almost 100
countries.
Jonathan L. Auerbach
Managing Director
David S. Grayson
Managing Director
A PIONEER IN OPENING UP
THE EMERGING AND FRONTIER
MARKETS TO INSTITUTIONAL
INVESTORS
Auerbach Grayson is a global institutional
brokerage firm that has carved out a unique
place in the expanding world of cross-border
investment.
Instead of following traditional Wall Street
practice and opening its own international
branches in the largest financial centers,
Auerbach Grayson’s founders had the idea
of establishing partnerships with local
securities firms, one firm per country.
Today, the Auerbach Grayson network
extends to almost 100 countries. Through its
local brokers, the New York-based firm can
execute trades for its U.S. institutional clients
in virtually every stock market in the world.
No other firm can match Auerbach
Grayson’s global scope and reach.
When Jonathan Auerbach and David
Grayson founded Auerbach Grayson in
1993, their timing couldn’t have been better.
International investing was poised for rapid
growth. But, in order to succeed, they
needed to create a business model that
would outflank the large, established Wall
Street firms.
The Important Local Viewpoint
Realizing that local, English-language market
research was being developed rapidly by
enterprising national firms in many countries,
the Auerbach Grayson founders saw their
answer in forming loyal partnerships and
creating an international network of local
brokers. “We do not have branches, we have
roots,” comments David Grayson in
explaining the value of Auerbach Grayson’s
connections with established local brokers
that specialize in close and constant
coverage of companies in their own
countries.
Indeed, the ability to produce strong
company research is probably the most
important requirement for a national firm that
wants to join the Auerbach Grayson network.
“Basic to the Auerbach Grayson idea,” says
Jonathan Auerbach, “was to bring to our
institutional clients in America the local point
of view, rather than the global point of view.
“We are strong proponents of ‘bottom up’
research, therefore. Our clients,” he adds.
“prefer to pay close attention to each
individual company, rather than to the
general outlook of the local markets, and
well-established local brokers are the best
people to give them this information.”
Access To U.S. Institutional
Investors
From the local broker’s point of view, the
rationale for joining the Auerbach Grayson
network can best be described, perhaps, by
this statement from a new member: “Our
agreement with Auerbach Grayson, giving us
access to institutional investors in the U.S.
and around the world, is an important step in
expanding and diversifying the shareholder
base of the country’s publicly-traded
companies.”
More than ten years after Auerbach
Grayson’s founding, the firm continues to
respond to ever-increasing interest in crossborder
trading and is still expanding its
network. During the past 12 months, new
partners have included Hansabank for
Estonia, Latvia and Lithuania; Doha Bank for
the State of Qatar; UTI Securities Limited for
India; and Asia Capital Limited for Sri Lanka.
There are still more to come, and the
network total will soon top the 100 mark.
A Global Markets Pioneer
Auerbach Grayson is now widely recognized
as a pioneer in the opening up emerging
and frontier markets to U.S. institutional
investors, and the firm regularly ranks among
the top global brokers rated by Nelson
Information, a division of Thomson Financial.
Along with network expansion has come
increasing sophistication in the array of
services offered by Auerbach Grayson and
its broker partners. Fixed-income instruments
and derivatives are also now traded in
addition to equities, while hedging and
arbitrage strategies are also provided, to
enhance and diversify client services.
A member firm of the National Association of
Securities Dealers (NASD) and the Securities
Investor Protection Corporation (SIPC) in the
United States, Auerbach Grayson is
managed by its founders, Jonathan
Auerbach and David Grayson, Managing
Directors. The staff of trading and sales
professionals, all located in New York, totals
approximately 30.
CONTACT INFORMATION
Contact Name Ms. Danielle Papagni E-mail dpapagni@agco.com Website www.agco.com
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