Compared with the U.S., equity trading commissions are holding up well in Canada, suggests a report from Stamford, Conn.-based Greenwich Associates published on Thursday.
The financial markets research firm released its latest rankings of Canadian leaders in the equity brokerage business. The report notes that the total pool of commissions earned by brokers on Canadian equity trades rose by approximately 2% last year to an estimated $685 million.
“Although that increase seems modest, it represents a strong outcome for brokers relative to results for brokers in the U.S., where broker commissions on trades of U.S. equities fell 11%-12% last year and have dropped some 27% since 2011,” says Jay Bennett, managing director at Greenwich, in a statement.
Following a trend in last year’s Greenwich ranking, RBC Capital Markets continued to widen its lead over its competition in the Canadian market. The firm is “topping all rivals by a wide and expanding margin in market share in both trading and research/advisory services,” the report says.
BMO Capital Markets ranks second in trading, followed by Scotia Capital Inc., CIBC World Markets, and TD Securities.
For Canadian equity research/advisory services, Greenwich reports that BMO Capital Markets is statistically deadlocked with Scotia Capital for second place, behind RBC Capital Markets. TD Securities ranks fourth, followed by CIBC World Markets.
“RBC Capital Markets and BMO Capital Markets both increased their market share in trading last year, but RBC’s gains again outpaced all other brokers,” says Bennett. “Both firms also grew their market or ‘vote’ share in research and advisory services, where BMO’s gains have carried the bank to a tie for second place.”
For Canadian equity electronic trading, Investment Technology Group (ITG) leads the way, Greenwich reports, followed by RBC Capital Markets, Liquidnet, Scotia Capital, and Credit Suisse.
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