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." (As those in this niche world will understand all too well, a single university investment management team can be constrained by stipulations from hundreds, even thousands, of smaller donation pools that, together, make up the total endowment, making a mockery of the idea that a university's capital pool is a homogenous entity).
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.
While acting as co-manager on these offerings, Williams Capital was able to sell bonds to a whole group of money managers and other institutional investors to whom the bulge-bracket firms
had paid scant attention.
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.
After raking in more than $2.5 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.
will eventually have to come around or they will miss out on liquidity.
But the major Wall Street investment banking firms, also known as bulge-bracket firms
, felt little impact from the SEC probes.
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
.In the previous study, conducted in the fourth quarter of 2008, there were no agency brokers among Integrity's top-rated CSA providers.
may be sourcing liquidity via technology too, but the fact that agency brokers are independently operated and do not engage in proprietary trading is also an advantage, Lesko asserts.
"The challenge will be to preserve their recently won market share as the bulge-bracket firms