J.P. Morgan, Goldman Sachs and Morgan Stanley Top Equity Brokers

Traders Magazine Online News, July 7, 2017

John D'Antona Jr.

 

J.P. Morgan, Goldman Sachs and Morgan Stanley top the list of the best equity brokers, in terms of market share in both research/advisory and trading.

That’s according to a recent report, “2017 Share Leaders in U.S. Equities,” from market consultancy Greenwich Associates. The firm noted that equity brokers are again forced to contend with a secular slowdown in trading activity that has shrunk the equity trading commission pool and reduced trading revenues. The pool of commissions earned by brokers on trades of U.S. equities contracted 11-12% last year, to an estimated $8.4 billion. That drop marked the third consecutive year of decline.

“The institutions participating in our 2017 study were predicting a 3-4% increase in the equity commission pool to nearly $9 billion by Q1 2018,” said Greenwich Associates Managing Director Jay Bennett. “By late May, however, several banks were signaling the market that the pace of trading had slowed once again, and that trading revenues were likely to disappoint—again.”

2017 Greenwich Share Leaders in U.S. Equities

•             The 2017 Greenwich Share Leaders in U.S. Equity Trading are Goldman Sachs, J.P. Morgan and Morgan Stanley, which are statistically tied for first place in institutional secondary trading market share, followed by Bank of America Merrill Lynch, and Credit Suisse.

•             In the Greenwich Share Leaders in U.S. Equity Research/Advisory Services, J.P. Morgan holds the top spot by itself, followed by Goldman Sachs and Morgan Stanley tied at second, Bank of America Merrill Lynch, and Citi and Barclays, which tie for the final spot. 

•             In the increasingly important category of U.S. Equity Algorithmic Trading Services, the 2017 Greenwich Share Leaders are Morgan Stanley, Goldman Sachs and the trio of Bank of America Merrill Lynch, J.P. Morgan and Sanford C. Bernstein, which are tied for the final spot.

2017 Greenwich Quality Leaders in U.S. Equities

•             The 2017 Greenwich Quality Leaders in U.S. Equity Research Product & Analyst Service are J.P. Morgan, Morgan Stanley and Sanford C. Bernstein.

•             The 2017 Quality Leaders in U.S. Equity Sales Trading & Execution Service are Goldman Sachs, J.P. Morgan and Morgan Stanley.

•             In Electronic Trading, the 2017 Greenwich Quality Leaders are J.P. Morgan, Jefferies, and Sanford Bernstein.

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