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.