Investment management and services provider BNY Mellon has acquired clearing firm Penson Financial Services Australia (PFSA) for $33 million.

Penson will become an affiliate of BNY Mellon subsidiary Pershing.

The transaction will give Pershing's operations a significantly larger footprint in Australia.

"The deal allows us to build upon BNY Mellon's existing presence in Australia, where we see great growth prospects in the investment services business broadly and the broker-dealer and adviser markets specifically," Pershing chief executive Brian T Shea said.

BNY Mellon Asia-Pacific chairman Steve Lackey said: "Australia is strategically important to BNY Mellon in Asia-Pacific, both to continue our local franchise growth and to support our clients' objectives.

"The acquisition of PFSA adds new capabilities for our institutional clients and reflects our continuing investment in the region."

PFSA offers execution and clearing services and provides processing for local equities and options.

In addition to providing clearing services in Australia, PFSA holds an Australian financial services licence, is a market participant of the Australian Securities Exchange and a clearing participant of the Australian Clearing House.

The takeover is expected to close in the fourth quarter of 2011, subject to regulatory approval.

Penson Worldwide's decision to sell its Australian operations is part of a restructuring of its United States business.

The firm has sustained losses as client activity has diminished and interest rates have fallen.

Penson said it would realise a gain of US$14 million from the transaction.

Other bidders for Penson's activities included BNP Paribas and several private equity firms.