Mid-sized / Regional Brokers Gaining Market Share of Institutional Commissions in U.S. Equities
July 27, 2016
As recently as 2007, the nine leading “bulge-bracket” brokers captured 78% of commissions paid by institutional investors on trades of U.S. equities.
This year, they are claiming only 60%--down a full two percentage points from 2015. Much of the lost share has flowed to mid-sized/regional dealers, which as a group now take home 28% of U.S. equity commissions, up from just 11% in 2007.