bulge-bracket firm

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Bulge-Bracket Firm

In bracketing, an underwriting firm responsible for placing a certain amount of a new issue with investors. If a bulge bracket firm is the single largest underwriter, it may be responsible for assigning parts of the issuer to other underwriters. Brackets are listed in order of size on an advertisement detailing each new issue, known as the tombstone.

bulge-bracket firm

A large investment banking firm that is considered to have an exceptional reputation and customer base. Investment bankers such as Merrill Lynch, Morgan Stanley, and Goldman Sachs are held to be among the relatively small group of firms that qualify.
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Last year some of the leading bulge-bracket firms combined their equities sales/voice broking and equities electronic trading divisions.
While bulge-bracket firms often can and do customize, boutique manager Upin notes, "Smaller firms customize and also often pool -- just like a single university endowment would within its own institution.
McPartland says that because a completely virtualised and highly utilised infrastructure is still years away for sell-side equities technology - 80 per cent of the bulge-bracket firms are using server virtualisation but its use for trading applications is unlikely due to the latency penalty - a large gap exists between what is currently possible and actually done.
It's the way fiduciaries, institutions, bulge-bracket firms (the most elite investment banks) and wealthy individuals that are determined to stay wealthy invest.
5 billion in new bond issues in his first 18 months in business, the entrepreneur found himself struggling to survive in a market that forced even many bulge-bracket firms out of the bond business.
While it remains much smaller than the bulge-bracket firms, it is also much larger than most boutique or regional investment banks.
Summary paragraph: A new business model has been established to let banks and brokers compete on a par with bulge-bracket firms in the fragmented equity execution space - outsourcing could prove the solution, says Alessandro Bressan, director, equities electronic trading at Deutsche Bank.
But the major Wall Street investment banking firms, also known as bulge-bracket firms, felt little impact from the SEC probes.
This is the result of various industry dynamics, including uncertainty due to regulatory reform, reduced capital dedicated to client trading activities at bulge-bracket firms, and niche players unable to sustain their businesses in the face of capital deficiencies.
All but one of the top 10 dealers in TABB's dealer rankings are bulge-bracket firms.
Around 38% of respondents also said they were most likely to trust agency brokers with their CSA pool, compared to 24% for bulge-bracket firms.
McPartland says that because a completely virtualized and highly utilized infrastructure is still years away for sell-side equities technology - 80% of the bulge-bracket firms are using server virtualization but its use for trading applications is unlikely due to the latency penalty - a large gap exists between what is currently possible and actually done.