In the face of a shrinking customer base and a decline in fees
from their core business, correspondent clearing firms are using
their technology and outsourcing wherewithal to open new markets
and generate revenue growth.
The number of National Association of Securities Dealers member
firms fell to 5,111 in 2005 from 5,451 in 1995. The number of
registered representatives at broker-dealers increased 30 percent,
from 505,647 to 655,832, but that's down from the 2001 peak of
673,822. Yet investment assets are rising, and clearers are in a
position to make reps more efficient at gathering and managing
investment assets. With more assets flowing through fewer
correspondents, retaining each clearing customer is a necessity,
and attracting new ones a priority. So clearers are aggressively
augmenting their platforms. |
