Broker-Dealers at loggerheads in the US - A David & Goliath Battle

The broker-dealer market is experiencing a surge in competitive intensity as wire-houses, banking players, investment advisors, and bulge-bracket wealth managers offer a comprehensive suite of advising-to-execution services. Success in this space now hinges on the accumulation of client accounts through economies of scale. Notably, the top 10 players currently dominate more than 50% of the global equity capital markets, underscoring the concentration of power. Meanwhile, smaller players face challenges in keeping pace with digital innovation and competing for private equity financing.

Adding to the woes are the regulatory headwinds that are projected to subject mid-market players to the long-held "fiduciary standard" of the competing IRA's, and thus, brokerage houses are on a hunt for a revised business model to conquer compliance, innovation and efficiency on all grounds.

Delve into Jasper Colin's Sector Spark's Study to gain insight into the ongoing shift in the broker-dealer market. The study highlights how the race to reposition for growth has become the focal point of leader priorities in 2023.