As the stock market bull run has been on a “tear” since 2009, with the S&P 500 up near 350% from the financial crisis bottom, brokerage commissions have not been so lucky. A Greenwich Associates report notes that the total institutional equity wallet is down 40% since 2009. More recently, commissions are down 13% year over year, extending the difficult brokerage trend and leaving a $1.3 billion hole in brokerage firms commission revenue. A combination of factors has led to the revenue drop, with the good news being the painful trend may be bottoming. Brokerage Firms – Several factors lead…
Bank Brokerage Commission Is Down So Much, Hard To Drop Further
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.
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