As the bigger clearing firms continue to differentiate their services from their smaller competitors', introducing broker-dealers with clearly defined business strategies have been left with fewer clearers to choose from.
Ten years ago, when clearing fees were considerably higher, there were about 70 firms vying for introducing broker clients. That number is now closer to 25, and the barbell-shaped clearing industry--with large and small firms on opposite ends--has grown more extreme. Bank of New York Mellon Corp.'s Pershing unit still services the most correspondents, with more than 1,100 customers, compared to 650 in 2000, but a barrage of acquisitions have created a handful of super-clearers.
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