A year after taking over from Jonathan Hertz, CEO Rob Katz has substantially changed the shape of the Peregrine Group. If the competition authorities don’t object he will sell the group’s 65% interest in Peregrine Securities to a consortium of securities management and black empowerment companies. Katz says the securities business does not fit with the new Peregrine model of a streamlined, low-capital, high-annuity business. But it is a step forward in the transformation of SA. Fatima Vawda, one of the early employees of Peregrine who left to start Legae Securities, is leading the consortium to take over her old shop, and merge the two under the name Legae Peresec. And it will be a substantial business, as Peregrine Securities alone, even without a traditional sell-side equity research team, is the biggest equity trader by value and volume. The business is even more entrenched in the derivatives market. But its earnings are volatile — they fell 23% in the year to March — and the bus...

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