- • Greenwich Associates Announces 2017 Share and Quality Leaders
- • Broker Trading Commissions and Revenues Continue Long Decline
J.P. Morgan, Goldman Sachs and Morgan Stanley top the list of the Greenwich Associates 2017 Share Leaders in U.S. Equities, besting all rivals in market share in both research/advisory services and trading.
Equity brokers are being 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,” says 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.”
- • 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.
- • 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.
Greenwich Associates is the leading provider of global market intelligence and advisory services to the financial services industry. We specialize in providing fact based insights and practical recommendations to improve business results. Our data focuses on the key metrics required for effective business management: operations performance, service quality, sales effectiveness, share of wallet, market share, brand, and behavioral trends. We are based in Stamford, CT with additional offices in Pleasanton, CA, London, Singapore, Tokyo, and Toronto. Please contact us for further information or to arrange an interview with one of our consultants.