A.B. Watley - Competitors

A.B. Watley Competition

Now Viewing A.B. Watley's competition in: Securities Brokers (primary)

Recent Developments

Congress Considers Legislation Concerning SEC - The recently introduced Securities Act of 2008 would amend federal securities laws, impacting securities brokers and other financial institutions under the SEC's jurisdiction. The legislation would enhance the effectiveness of the SEC's enforcement, corporation finance, trading and markets, investment management, and examination programs. The bill, which contains many provisions previously requested by the SEC, has 15 co-sponsors and has been referred to the House Financial Services Committee for debate.

Fullservice Brokers Go Upstream, Leaving Assets Downstream - A shift among brokerage firms could benefit online brokers, according to The Dow Jones News Service. Large fullservice firms are shifting from a transaction- to a fee-based business model, consequently turning their focus to truly wealthy clients. As a result, assets from smaller clients are migrating to online brokers. For example, online broker Charles Schwab added $26 billion in new assets in second quarter 2008, and reports that its total client assets increased 1 percent over the previous year to $1.4 trillion.

AMEX Members Approve Merger Plans - American Stock Exchange (AMEX) members voted in favor of the proposed merger with NYSE Euronext. Preliminary numbers show 695 members, or 84 percent of AMEX's membership, voted for the transaction; only seven voted against. The merger benefits the NYSE by boosting its presence in US options and exchange-traded funds, and benefits broker-dealers by eliminating potential conflicting rules and allowing them to more efficiently execute transactions. This acquisition is the latest in a series between big international exchanges and smaller regional exchanges that are struggling to compete in a growing and increasingly electronic marketplace.

Competitive Landscape

Demand is driven by the returns of securities markets relative to alternative investments. The profitability of individual companies depends on efficient operations and good marketing. Large companies have economies of scale in operations and high name recognition. Small companies can compete effectively by offering better customer service. The industry is highly automated: average annual revenue per worker is close to $300,000.

Full Industry Overview For Securities Brokers

Securities Brokers Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US securities, commodity contracts, and investments, an indicator for securities brokers, is forecast to increase at an annual compounded rate of 3.3 percent between 2007 and 2012.

Securities, Commodities, and Investment Growth Level

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.