Money in Motion: How the Sell Side Can Differentiate and Win Market Share

U.S. equity commission wallets are down almost 50% since their peak in 2009. This presents challenges for brokers in terms of lower revenue and profitability, causing many to rethink their business models. Behind this gloomy headline number, however, there is a silver lining: Increased usage of CSA’s and unbundling trends now mean that a majority of buy-side trading flow is not earmarked for research and advisory services and can be routed with full discretion.

This represents a potential $4.4 billion of commissions up for grabs. To have a shot at this “money in motion,” brokers will have to shine at sourcing liquidity for their clients by focusing on natural liquidity when available, intelligent trading tools when it isn’t. Relationship and service are also vital—brokers should focus on understanding client needs and tailoring the service offering around them.

Fill out the form to the Q3 2019 Greenwich report, "Money in Motion: How the Sell Side Can Differentiate and Win Market Share."