Equities Revenues Highest Since 2010

Terry Flanagan

Full-year equities revenues for the 10 largest investment banks at the end of this year are likely to be the highest since 2010 according to Coalition, the data provider.

Coalition has forecast that equities revenues this year will reach $40.9bn, 22% more than the $33.4bn earned last year. The Coalition Index tracks the performance of the 10 largest global investment banks.

The data provider said that in the third quarter of this year derivatives outperformed other businesses and Asia was the best performing region. The report said: “Equities remained strong and is forecast to return the best results since 2010.”

However in Europe, the European Commission is continuing to press ahead with 4% and 8% volume caps for dark pool trading.

IMA said: “79% of institutional investors believe that the volume cap will impact their ability to execute order flow. It is clear the commission has not taken in to consideration the need for investors to have choice in execution in order to attain the best price for our underlying clients – pensioners and savers.”

Rebecca Healey, a senior research analyst at consultancy TABB Group said in an email that these proposals have the potential to inadvertently create greater opacity as well as seriously impact institutional investors ability to execute order flow.

TABB will soon publish research stating that only 14% of institutional investors do not have concerns regarding the introduction of the volume cap proposals.

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