Bulletin
Investor Alert

New York Markets Close in:

May 7, 2018, 7:27 a.m. EDT

Big banks take the lion’s share of stock trading

Smaller brokerages have been hurt by the popularity of ETFs, decline in active asset managers and Europe’s new rules on research

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    JPMorgan Chase & Co. (JPM)
  • X
    Bank of America Corp. (BAC)
  • X
    Stifel Financial Corp. (SF)

or Cancel Already have a watchlist? Log In

By Telis Demos


Getty Images
A financial professional works on a quiet Friday afternoon floor of the New York Stock Exchange at the end of the trading day

It’s a good time to be a megabank.

In many businesses, the largest global banks such as JPMorgan Chase & Co. /zigman2/quotes/205971034/composite JPM +0.76%   and Bank of America Corp. /zigman2/quotes/200894270/composite BAC +0.10%   are getting bigger, while others are struggling to keep pace. The latest example: the volatility-induced surge in first-quarter stock-trading revenue that smaller U.S. investment banks almost universally missed out on.

Stifel Financial Corp. /zigman2/quotes/204823339/composite SF +0.54%  , Raymond James Financial Inc., /zigman2/quotes/201697413/composite RJF +1.87%   Evercore Inc. /zigman2/quotes/207171136/composite EVR +1.00%   and Piper Jaffray Cos.  all reported drops of 10% or more in stock-trading revenue for the first three months of 2018 compared with a year ago, according to company filings, resulting in the lowest market share in years for midtier trading firms.

By contrast, trading arms of the biggest U.S. banks—at JPMorgan and Bank of America, as well as at Citigroup Inc., Goldman Sachs Group Inc. /zigman2/quotes/209237603/composite GS +0.29%   and Morgan Stanley /zigman2/quotes/209104354/composite MS +0.56%   —posted gains in equities sales and trading revenue ranging from 26% to 38% for the quarter versus a year ago.

An expanded version of this report appears at WSJ.com

Popular on WSJ.com

Trump Team Takes a More Aggressive Stance on Mueller Probe

NBC Bet $69 Million on Megyn Kelly—Then Viewers Vanished

/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 130.42
+0.98 +0.76%
Volume: 4.20M
May 27, 2022 12:32p
P/E Ratio
9.68
Dividend Yield
3.07%
Market Cap
$380.17 billion
Rev. per Employee
$463,153
loading...
/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 36.71
+0.03 +0.10%
Volume: 19.43M
May 27, 2022 12:32p
P/E Ratio
10.47
Dividend Yield
2.29%
Market Cap
$295.45 billion
Rev. per Employee
$465,510
loading...
/zigman2/quotes/204823339/composite
US : U.S.: NYSE
$ 63.82
+0.34 +0.54%
Volume: 150,831
May 27, 2022 12:29p
P/E Ratio
9.61
Dividend Yield
1.88%
Market Cap
$6.77 billion
Rev. per Employee
$552,784
loading...
/zigman2/quotes/201697413/composite
US : U.S.: NYSE
$ 97.93
+1.80 +1.87%
Volume: 430,395
May 27, 2022 12:32p
P/E Ratio
13.84
Dividend Yield
1.39%
Market Cap
$20.02 billion
Rev. per Employee
$536,287
loading...
/zigman2/quotes/207171136/composite
US : U.S.: NYSE
$ 112.96
+1.11 +1.00%
Volume: 78,883
May 27, 2022 12:32p
P/E Ratio
6.38
Dividend Yield
2.55%
Market Cap
$4.54 billion
Rev. per Employee
$1.73M
loading...
/zigman2/quotes/209237603/composite
US : U.S.: NYSE
$ 324.58
+0.95 +0.29%
Volume: 960,884
May 27, 2022 12:32p
P/E Ratio
6.30
Dividend Yield
2.46%
Market Cap
$111.15 billion
Rev. per Employee
$1.40M
loading...
/zigman2/quotes/209104354/composite
US : U.S.: NYSE
$ 85.48
+0.48 +0.56%
Volume: 2.18M
May 27, 2022 12:32p
P/E Ratio
10.88
Dividend Yield
3.27%
Market Cap
$149.26 billion
Rev. per Employee
$804,863
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.