By James Langton

(January 10 – 17:15 ET) – The Securities Industry Association in the United States has released its annual report.

Included in the report is a roundtable discussion among several industry executives discussing, among other things, the future of the U.S. brokerage business.

Incoming SIA chairman Mark Sutton, president PaineWebber Inc., highlights the replacement of the Glass-Steagall Act by Gramm-Leach-Bliley, introducing the possibility of cross-sector mergers to the industry. “While mergers within our industry are not recent developments, it is hard to escape the conclusion that the trend toward consolidation demonstrates the need to be global and a provider of diverse products and services for individuals and institutions alike.”

SIA vice chairman Allen Morgan Jr., chairman and CEO of Morgan Keegan Inc., says, “We will see a trend toward more fee-based relationships with our clients. Advice and transactions will be priced on a negotiated basis with clients. Individuals will have a more secure understanding of the cost of their relationship and firms will have a more predictable base of revenue.”

SIA chairman James Brinkley, president of Legg Mason Wood Walker, suggests that, “Another issue includes the demographics of our clients and how we respond to this trend, including workplace diversity.”

SIA president Marc Lackritz points out the transforming implications of technology and the need for regulatory evolution. “We should also be thinking outside the box and looking at ways to streamline surveillance and enforcement activities of regulators — for example, eliminating duplication by regulatory consolidation.”