UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period ended September 30, 1999
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
for the transition period from ___to___
Commission File Number: 1-12043
FAHNESTOCK VINER HOLDINGS INC.
(Exact name of registrant as specified in its charter)
Ontario, Canada 98-0080034
State or jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
P.O. Box 2015, Suite 1110
20 Eglinton Avenue West
Toronto, Ontario, Canada M4R 1K8
(Address of principal executive offices) (Zip Code)
416-322-1515
(Registrant's telephone number, including area code)
Not applicable
(Former name, address and former fiscal year, if changed since last report)
Indicate by check mark whether registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months ( or for such shorter period that
the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes [x] No [ ]
The number of shares of the Company's Class A non-voting shares
and Class B voting shares (being the only classes of common stock of the
Company), outstanding on October 20, 1999 was 12,389,769 and 99,680
shares, respectively.
FAHNESTOCK VINER HOLDINGS INC.
INDEX
Page No
PART I FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
Consolidated Balance Sheet
as of September 30, 1999
and December 31, 1998
Consolidated Statement of Operations
for the nine months ended
September 30, 1999 and 1998
Consolidated Statement of Cash Flows
for the nine months ended
September 30, 1999 and 1998
Notes to Consolidated Financial
Statements
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
PART II OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security-Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
FAHNESTOCK VINER HOLDINGS INC.
CONSOLIDATED BALANCE SHEET (unaudited)
September 30, December 31,
1999 1998
Expressed in thousands of U.S. dollars
ASSETS
Current assets
Cash and short-term deposits $9,559 $11,501
Restricted deposits 2,829 2,312
Securities purchased under agreement to resell 50,887 12,174
Deposits with clearing organizations 9,013 7,072
Receivable from brokers and clearing organizations 198,767 167,018
Receivable from customers 382,732 334,664
Securities owned, at market value 79,174 88,579
Demand notes receivable 30 30
Other 12,537 26,912
745,528 650,262
Other assets
Stock exchange seats (approximate market value
$7,499; $4,798 in 1998) 1,326 1,507
Fixed assets, net of accumulated depreciation of
$11,140; $8,896 in 1998 9,904 9,286
Goodwill, at amortized cost 5,407 5,708
16,637 16,501
$762,165 $666,763
The accompanying notes are an integral part of these condensed
financial statements.
FAHNESTOCK VINER HOLDINGS INC.
CONSOLIDATED BALANCE SHEET (unaudited)
September 30, December 31,
1999 1998
Expressed in thousands of U.S. dollars
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Drafts payable $14,318 $22,734
Bank call loans 20,465 42,217
Securities sold under agreement to repurchase 44,146 664
Payable to brokers and clearing organizations 299,713 235,029
Payable to customers 117,844 115,878
Securities sold, but not yet purchased,
at market value 31,774 41,104
Accounts payable and other liabilities 38,623 40,119
Income taxes payable 11,667 2,665
Subordinated loans payable 30 30
578,580 500,440
Shareholders' equity
Share capital
12,387,269 Class A non-voting shares
(1998 - 12,241,269 shares) 36,024 36,392
99,680 Class B voting shares 133 133
36,157 36,525
Contributed capital 3,262 2,196
Retained earnings 144,166 127,602
183,585 166,323
$762,165 $666,763
The accompanying notes are an integral part of these condensed
financial statements.
FAHNESTOCK VINER HOLDINGS INC.
CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)
Third Quarter ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
Expressed in thousands of U.S.
dollars, except per share amounts
REVENUE:
Commissions $25,855 $27,799 $86,668 $86,580
Principal transactions, net 16,834 17,075 51,772 50,703
Interest 11,483 10,780 31,671 33,167
Underwriting fees 3,836 3,824 9,442 10,176
Advisory fees 4,882 6,262 16,900 16,800
Other 2,058 1,538 5,394 6,954
64,948 67,278 201,847 204,380
EXPENSES:
Compensation and related
expenses 32,129 33,254 103,312 105,964
Clearing and exchange fees 2,042 2,100 6,674 6,296
Communications 5,298 5,158 16,003 16,052
Occupancy costs 3,190 3,446 9,550 9,901
Interest 5,719 5,360 15,933 17,516
Other 5,134 4,265 15,192 11,601
53,512 53,583 166,664 167,330
Profit before income taxes 11,436 13,695 35,183 37,050
Income tax provision 5,183 6,106 15,978 16,223
NET PROFIT FOR PERIOD $6,253 $7,589 $19,205 $20,827
Profit per share
- basic $0.50 $0.60 $1.54 $1.65
- diluted $0.50 $0.59 $1.52 $1.60
The accompanying notes are an integral part of these condensed
financial statements.
FAHNESTOCK VINER HOLDINGS INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
1999 1998
Expressed in thousands of U.S. dollars
Cash flows from operating activities:
Net profit for the period $19,205 $20,827
Adjustments to reconcile net profit to net cash
provided by (used in) operating activities:
Non-cash items included in net profit:
Depreciation and amortization 2,564 2,156
Gain on sale of exchange seat (492) -
Decrease (increase) in operating assets,
Restricted deposits (517) (423)
Securities purchased under agreements to resell (38,713) -
Deposits with clearing organizations (1,941) (3,838)
Receivable from brokers and clearing organizations (31,749) 178,700
Receivable from customers (48,068) 14,719
Securities owned 9,405 (5,566)
Other assets 14,375 4,174
Increase (decrease) in operating liabilities,
Drafts payable (8,416) (9,744)
Securities sold under agreement to repurchase 43,482 -
Payable to brokers and clearing organizations 64,684 (187,290)
Payable to customers 1,966 (7,024)
Securities sold, but not yet purchased (9,330) 4,689
Accounts payable and other liabilities (1,496) (5,159)
Income taxes payable 9,002 (5,279)
Cash provided by operating activities 23,961 942
Cash flows from investing activities:
Proceeds from sale of exchange seat 655 -
Purchase of fixed assets (2,862) (2,015)
Cash (used in) investing activities (2,207) (2,015)
Cash flows from financing activities:
Cash dividends paid on Class A non-voting and
Class B shares (2,642) (2,668)
Issuance of Class A non-voting shares 4,111 1,851
Repurchase of Class A non-voting shares for
cancellation (4,479) (4,881)
Tax benefit from employee stock options exercised 1,066 863
(Decrease) increase in bank call loans (21,752) 3,978
Cash (used in) financing activities (23,696) (857)
Net (decrease) in cash and short-term deposits (1,942) (1,930)
Cash and short-term deposits, beginning of period 11,501 10,784
Cash and short-term deposits, end of period $9,559 $8,854
The accompanying notes are an integral part of these condensed
financial statements
FAHNESTOCK VINER HOLDINGS INC.
Notes to Condensed Consolidated Financial Statements (unaudited)
1. Basis of Presentation
The condensed consolidated financial statements include the
accounts of Fahnestock Viner Holdings Inc. ("FVH") and its
subsidiaries ( together, the "Company"). The principal subsidiary of
FVH is Fahnestock & Co. Inc. ("Fahnestock"), a registered broker-
dealer in securities. The Company engages in a broad range of
activities in the securities industry, including retail securities
brokerage, institutional sales and trading, investment banking (both
corporate and public finance), underwritings, research, market-
making, and investment advisory and asset management services.
The Company provides its services from 80 offices in 15 states
located primarily in the Northeastern United States, Michigan, the
Midwest and Florida. In addition, Fahnestock conducts business in
South America through local broker-dealers. The Company employs
approximately 755 financial consultants.
All material intercompany accounts have been eliminated in
consolidation.
The Company's condensed consolidated financial statements
have been prepared in accordance with the rules and regulations of
the Securities and Exchange Commission ("SEC") with respect to
Form 10-Q and do not include all of the information and footnotes
required under accounting principles generally accepted in the
United States for complete financial statements. These financial
statements should be read in conjunction with the Company's most
recent annual report on Form 10-K for the year ended December 31,
1998 including the summary of the significant accounting policies
utilized by the Company.
All adjustments which, in the opinion of management, are
normal and recurring and necessary for a fair presentation of the
results of operations, financial position and cash flows for the
interim periods presented have been made. The nature of the
Company's business is such that the results of operations for the
interim periods are not necessarily indicative of the results to be
expected for a full year.
These condensed consolidated financial statements are
presented in U.S. dollars.
2. Profit per share
Profit per share was computed by dividing net profit by the
weighted average number of Class A non-voting and Class B shares
outstanding. Diluted profit per share includes the weighted average
Class A non-voting and Class B shares outstanding and the effects of
Class A non-voting share options using the treasury stock method.
Profit per share has been calculated as follows:
Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
Basic weighted average
number of shares
outstanding 12,501,571 12,654,045 12,501,571 12,654,045
Net effect, treasury
stock method 175,648 128,423 182,797 374,267
Diluted common shares 12,677,219 12,782,468 12,684,368 13,028,312
Net profit for
the period $6,253,000 $7,589,000 $19,205,000 $20,827,000
Basic profit per share $0.50 $0.60 $1.54 $1.65
Diluted profit per share $0.50 $0.59 $1.52 $1.60
3. Net Capital Requirements
The Company's principal broker-dealer subsidiary,
Fahnestock, is subject to the Uniform Net Capital Rule (the "Rule")
of the SEC and the net capital rule of the New York Stock Exchange
(the "NYSE"). Fahnestock has elected to use the alternative method
permitted by the Rule which requires that it maintains minimum net
capital equal to 2% of aggregate debit items arising from customer
transactions, as defined. The NYSE may prohibit a member firm
from expanding its business or paying dividends if resulting net
capital would be less than 5% of aggregate debit items.
At September 30, 1999, the net capital of Fahnestock as
calculated under the Rule was $126,409,000 or 28% of Fahnestock's
aggregate debit items. This was $117,345,000 in excess of the
minimum required net capital.
4. Segment Information
The table below presents information about the reported
operating income of the Company for the periods described, in
accordance with the method described in the Company's Annual
Report on Form 10-K for the year ended December 31, 1998. The
Company's business is predominantly in the U.S. Asset information
by reportable segment is not reported, since the Company does not
produce such information for internal use.
Three months ended Nine months ended
September 30, September 30,
000's omitted 1999 1998 1999 1998
Revenue:
Retail Branches $33,077 $32,376 $108,290 $105,136
Capital Markets 16,976 20,587 51,574 55,902
Asset Management 3,146 3,242 9,143 8,827
Interest 10,540 9,761 28,614 30,720
Other 1,209 1,312 4,226 3,795
Total $64,948 $67,278 $201,847 $204,380
Operating Income:
Retail Branches $792 $175 $4,314 $3,183
Capital Markets 1,577 4,835 10,252 14,774
Asset Management 2,020 2,153 5,824 5,577
Interest 5,075 4,555 13,057 13,291
Other 1,972 1,977 1,706 225
Total $11,436 $13,695 $35,183 $37,050
ITEM 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The securities industry is directly affected by general
economic and market conditions, including fluctuations in volume
and price levels of securities and changes in interest rates, all of
which have an impact on commissions and firm trading and
investment income as well as on liquidity. Substantial fluctuations
can occur in revenues and net income due to these and other factors.
Results of Operations
Net profit for the third quarter ended September 30, 1999
was $6,253,000 or $0.50 per share compared to $7,589,000
or $0.60 per share for the third quarter of 1998, a decrease of 18% in
net profit. Revenue for the third quarter of 1999 was
$64,948,000, a decrease of 3% compared to revenue of
$67,278,000 in the third quarter of 1998, as commissions, trading
activities, and advisory fees declined during the quarter compared to
prior year levels.
Net profit for the nine months ended September 30, 1999
was $19,205,000 or $1.54 per share compared to
$20,827,000 or $1.65 per share for the comparable period of 1998, a
decrease of 8% in net profit. Revenue for the first nine months of
1999 was $201,847,000, compared to revenue of
$204,380,000 in the first nine months of 1998, a decrease of 1%.
During the third quarter of 1999, while the senior market
averages touched new highs, the stock market became much more
selective - with most companies, both large and small, well off
their highs. The increase in interest rates also contributed to the
dampening of market activity. As a result, the retail market
softened and turnover slowed. This is reflected in lower revenues
and earnings compared to the prior year.
Commission income and to a large extent, income
from principal transactions, depend on market volume levels.
Commission revenue decreased by 7% in the third quarter of 1999
compared to the third quarter of 1998 due to a softening in market
conditions, but remained level on a year-to-date basis. Net revenue
from principal transactions decreased by 1% compared to the third
quarter of 1998, but increased by 2% on a year-to-date basis. Market
volatility has reduced the quarter to quarter predictability of these
revenues. Investment banking revenues achieved the same levels in
the third quarter 1999 as was achieved in the comparable quarter of
1998. Advisory fees decreased by 22% due to a lower level of
participation in corporate syndicates this year compared to the prior
year. Net interest revenue (interest revenue less interest expense)
increased slightly in the third quarter of 1999 compared to the same
period in 1998 as a result of higher stock borrow/stock loan activity
and higher levels of interest-earning assets. Expenses, other than
interest, were at the same levels in the third quarter of 1999 as in the
third quarter of 1998.
Liquidity and Capital Resources
Total assets at September 30, 1999 of $762,165,000
increased by approximately 14% from $666,763,000 at December
31, 1998 due primarily to higher customer and broker/dealer
balances and higher positions in securities purchased under
agreement to resell. Liquid assets accounted for 98% of total assets,
consistent with year end levels. The Company satisfies its need for
funds from its own cash resources, internally-generated funds,
subordinated borrowings, collateralized borrowings consisting
primarily of bank loans, and uncommitted lines of credit. The
amount of Fahnestock's bank borrowings fluctuates in response to
changes in the level of the Company's securities inventories and
customer margin debt as well as changes in stock loan balances.
Fahnestock has arrangements with banks for borrowings on a fully
collateralized basis. At September 30, 1999, $20,465,000 of such
borrowings were outstanding.
Management believes that funds from operations, combined
with Fahnestock's capital base and available credit facilities, are
sufficient for the Company's liquidity needs in the foreseeable future.
Through September 30, 1999, the Company has purchased
through the facilities of the New York and the Toronto Stock
Exchanges pursuant to Normal Course Issuer Bids and cancelled a
total of 318,000 Class A non-voting shares at an average cost of
$14.0831 (42,800 shares at an average price of $14.6082 per share
were purchased pursuant to the currently outstanding Normal Course
Issuer Bid which commenced on July 5, 1999).
The Company announced that it intends to purchase up to
758,000 of its Class A non-voting shares (approximately 10% of the
public float) by way of a Normal Course Issuer Bid through the
facilities of the Toronto and New York Stock Exchanges during the
period July 5, 1999 through July 4, 2000. The Company believes
that its Class A non-voting shares may be undervalued from time to
time and that the repurchase of such shares is an appropriate use of
corporate funds.
On February 26, 1999, May 21, 1999 and August 20, 1999,
the Company paid cash dividends of $0.07 per Class A non-voting
and Class B share totaling $2,642,000 from available cash on hand.
On October 20, 1999, the board of directors declared a
regular quarterly cash dividend of U.S.$0.07 per Class A non-voting
and Class B share payable on November 19, 1999 to shareholders of
record on November 5, 1999.
The book value of the Company's Class A non-voting and
Class B shares is U.S.$14.70 at September 30, 1999 (U.S.$14.22 at
September 30, 1998), based on total outstanding shares of
12,486,949 and 12,438,299, respectively.
Year 2000 Disclosure
The Year 2000 problem ("Year 2000" or "Y2K") is the result
of computer systems having been written using two digits, rather
than four, to define the year. Any computer, computer program,
equipment or product that has date-sensitive software or embedded
chips, not corrected, could produce inaccurate or unpredictable
results commencing on January 1, 2000.
The Company is a broker/dealer in securities and as such
relies heavily on computer technology to conduct its operations. The
Company relies on both internal systems and on third party vendors.
The Company's remediation efforts have proceeded according to
plan. The modification and testing of the Company's internal
systems for Year 2000 compliance is complete and Y2K compliant
versions are currently in service. Non-information systems have also
been assessed, modified and tested. In March, April and May 1999,
the Company participated in an industry-wide testing program. The
Securities Industry Association reported that these tests were
successful. The Company continues to perform internal and point-
to-point tests with significant counterparties and will do so
throughout the balance of 1999. The Company has contacted the
third parties on whom it relies, regarding their Year 2000 status, and
has received assurances that the third party systems are compliant.
However, there can be no guarantee that these parties have provided
accurate and complete information concerning their Year 2000
efforts.
The cost of readying the Company for Year 2000 has been
estimated to be approximately $500,000 for fiscal 1999. This
includes the costs associated with the personnel dedicated to the
project and the cost of new hardware. A budget of $50,000 has been
approved for fiscal 2000 to cover contingencies. This range of costs
does not include normal ongoing costs for computer hardware or
software revisions that would be required in the normal course of
business. All funding for the Y2K compliance effort is from
available cash on hand.
The Company has adopted a comprehensive contingency
plan with respect to the Y2K problem, is reviewing this plan on an
ongoing basis to assess its continued applicability, and is making
adjustments as required.
Despite the Company's planning and preparation for Year
2000, there can be no assurance that partial or total systems
interruptions will not occur and that the costs necessary to update
hardware and software would not have a material adverse impact on
the Company's business, financial condition, statement of operations
and business prospects.
Factors Affecting "Forward-Looking Statements"
This report on Form 10-Q contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933,
as amended (the "Act"), and Section 21E of the Exchange Act. These
forward-looking statements relate to anticipated financial performance,
future revenues or earnings, business prospects and anticipated market
performance of the Company. The Private Securities Litigation Reform Act
of 1995 provides a safe harbor for forward-looking statements. In order to
comply with the terms of the safe harbor, the Company cautions
readers that a variety of factors could cause the Company's actual
results to differ materially from the anticipated results or other
expectations expressed in the Company's forward-looking
statements. These risks and uncertainties, many of which are beyond
the Company's control, include, but are not limited to: (i) transaction
volume in the securities markets, (ii) the volatility of the securities
markets, (iii) fluctuations in interest rates, (iv) changes in regulatory
requirements which could affect the cost and manner of doing
business, (v) fluctuations in currency rates, (vi) general economic
conditions, both domestic and international, (vii) changes in the rate
of inflation and the related impact on the securities markets, (viii)
competition from existing financial institutions and other new
participants in the securities markets, (ix) legal developments
affecting the litigation experience of the securities industry, and (x)
changes in federal and state tax laws which could affect the
popularity of products sold by the Company. There can be no
assurance that the Company has correctly or completely identified
and assessed all of the factors affecting the Company's business. The
Company does not undertake any obligation to publicly update or
revise any forward-looking statements.
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
Risk Management
The Company's principal business activities by their nature
involve significant market and credit risks. The Company's
effectiveness in managing these risks is critical to its success and
stability.
As part of its normal business operations, the Company
engages in the trading of both fixed income and equity securities in
both a proprietary and market-making capacity. The Company
makes markets in over-the-counter equities in order to facilitate
order flow and accommodate its institutional and retail customers.
The Company also makes markets in municipal bonds, mortgage-
backed securities, government bonds and high yield bonds.
Market risk generally means the risk of loss that may result
from the potential change in the value of a financial instrument as a
result of fluctuations in interest and currency exchange rates and in
equity and commodity prices. Market risk is inherent in all types of
financial instruments, including both derivatives and non-
derivatives. The Company's exposure to market risk arises from its
role as a financial intermediary for its customers' transactions and
from its proprietary trading and arbitrage activities.
In addition, the Company's activities expose it to operational
risk, legal risk and funding risk. Operational risk generally means the
risk of loss resulting from improper processing of transactions or
deficiencies in the Company's operating systems or internal controls.
With respect to its trading activities, the Company has procedures
designed to ensure that all transactions are accurately recorded and
properly reflected on the Company's books on a timely basis. With
respect to client activities, the Company operates a system of internal
controls designed to ensure that transactions and other account
activity (new account solicitation, transaction authorization,
transaction processing, billing and collection) are properly approved,
processed, recorded and reconciled. Legal risk generally includes the
risk of non-compliance with legal and regulatory requirements and
the risk that a counterparty's obligations are unenforceable. The
Company is subject to extensive regulation in the various
jurisdictions in which it conducts its business. Through its legal
advisors and its compliance department, the Company has
established routines to ensure compliance with regulatory capital
requirements, sales and trading practices, new products, use and
safekeeping of customer securities and funds, granting of credit,
collection activities, and record keeping. The Company has
procedures designed to assess and monitor counterparty risk. For a
discussion of funding risk, see "Liquidity and Capital Resources",
above.
Value-at-Risk
Value-at-risk is a statistical measure of the potential loss in
the fair value of a portfolio due to adverse movements in underlying
risk factors. In response to the SEC's market risk disclosure
requirements, the Company has performed a value-at-risk analysis
of its trading financial instruments and derivatives. The value -at-risk
calculation uses standard statistical techniques to measure the
potential loss in fair value based upon a one-day holding period and
a 95% confidence level. The calculation is based upon a variance-
covariance methodology, which assumes a normal distribution of
changes in portfolio value. The forecasts of variances and co-
variances used to construct the model, for the market factors relevant
to the portfolio, were generated from historical data. Although value-
at-risk models are sophisticated tools, their use can be limited as
historical data is not always an accurate predictor of future
conditions. The Company attempts to manage its market exposure
using other methods, including trading authorization limits and
concentration limits.
At September 30, 1999 and December 31, 1998, the
Company's value-at-risk for each component of market risk was as
follows:
September 30, December 31,
000's omitted 1999 1998
Interest rate risk $137 $298
Equity price risk 518 759
Diversification benefit (472) (575)
Total $183 $482
The potential future loss presented by the total value-at-risk
generally falls within predetermined levels of loss that should not be
material to the Company's results of operations, financial condition
or cash flows. The changes in the value-at-risk amounts reported in
1999 from those reported in 1998 reflect changes in the size and
composition of the Company's trading portfolio; more particularly
an increase in the size and weighting of the Company's portfolio of
government debt and a reduction in the Company's exposure to
NASDAQ markets at September 30, 1999 compared to December
31, 1998 reduced the Company's overall exposure through the
diversification benefit arising out of a market hedge.
The value-at-risk estimate has limitations that should be
considered in evaluating the Company's potential future losses based
on the period-end portfolio positions. Recent market conditions,
including increased volatility, may result in statistical relationships
that result in higher value-at-risk than would be estimated from the
same portfolio under different market conditions, or the converse
may be true. Critical risk management strategy involves the active
management of portfolio levels to reduce market risk. The
Company's market risk exposure is continuously monitored as the
portfolio risks and market conditions change.
PART II
ITEM 1. Legal Proceedings
There are no material legal proceedings to which the
Company or its subsidiaries are parties or to which any of
their respective properties are subject. The Company's
subsidiaries are parties to legal proceedings incidental to
their respective businesses. The materiality of legal matters
on the Company's future operating results depends on the
level of future results of operations as well as the timing and
ultimate outcome of such legal matters.
ITEM 2. Changes in Securities and Use of Proceeds Not applicable
ITEM 3. Defaults Upon Senior Securities Not applicable
ITEM 4. Submission of Matters to a Vote of Security-Holders None
ITEM 5. Other Information None
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits - Financial Data Schedule included as Exhibit 27
(b) Reports on Form 8-K - None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized, in the City of Toronto,
Ontario, Canada on the 20th day of October, 1999.
FAHNESTOCK VINER HOLDINGS INC.
By:/s/ A.G. Lowenthal
A.G.Lowenthal, Chairman
(Principal Financial Officer)
By:/s/ E.K. Roberts
E.K.Roberts, President
(Duly Authorized Officer)
<TABLE> <S> <C>
<ARTICLE> BD
<LEGEND>
EXHIBIT 27
Financial Data Schedule for the third quarter ended September 30, 1999
required pursuant to Item 601(c) of Regulation S-K and Regulation S-B
and Rule 401 of Regulation S-T.
</LEGEND>
<CIK> 0000791963
<NAME> FAHNESTOCK VINER HOLDINGS INC.
<MULTIPLIER> 1
<CURRENCY> 1
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JUL-01-1999
<PERIOD-END> SEP-30-1999
<EXCHANGE-RATE> 1
<CASH> 12,388,000
<RECEIVABLES> 441,145,000
<SECURITIES-RESALE> 50,887,000
<SECURITIES-BORROWED> 161,934,000
<INSTRUMENTS-OWNED> 79,174,000
<PP&E> 9,904,000
<TOTAL-ASSETS> 762,165,000
<SHORT-TERM> 20,465,000
<PAYABLES> 194,208,000
<REPOS-SOLD> 44,146,000
<SECURITIES-LOANED> 287,987,000
<INSTRUMENTS-SOLD> 31,774,000
<LONG-TERM> 0
<COMMON> 36,157,000
0
0
<OTHER-SE> 147,428,000
<TOTAL-LIABILITY-AND-EQUITY> 762,165,000
<TRADING-REVENUE> 16,834,000
<INTEREST-DIVIDENDS> 11,483,000
<COMMISSIONS> 25,855,000
<INVESTMENT-BANKING-REVENUES> 3,836,000
<FEE-REVENUE> 4,882,000
<INTEREST-EXPENSE> 5,719,000
<COMPENSATION> 32,129,000
<INCOME-PRETAX> 11,436,000
<INCOME-PRE-EXTRAORDINARY> 6,253,000
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,253,000
<EPS-BASIC> 0.50
<EPS-DILUTED> 0.50
</TABLE>
