Bloomberg article on the challenges facing the City’s stockbrokers as their business model faces decreased corporate activity, overcapacity, intense competition and technological change
One of the features of 2011 was the consolidation, and closure, of many London stockbroking businesses. Faced with fixed costs, fewer IPOs, a lower volume of shares traded and the need to invest in electronic trading platforms, some stockbrokers have closed their doors; others have sought mergers or parents with stronger balance sheets. This Bloomberg article provides a good overview of what 2011 meant for UK stockbrokers; this prediction by Deloitte of a better 2012 on the AIM market provides perhaps a glimmer of hope for the small stockbroker sector.
See also: Seymour Pierce receives record fine.
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