Declining Volumes Necessitate Changes to Broker Business Models

Institutional brokers must adopt more client-centric business models in order to improve profit margins as their traditional revenue-generating approaches become less viable in the face of seismic market and regulatory changes.

Tabb Group analysts Adam Sussman and Cheyenne Morgan argue that better analysis of buy-side and hedge fund client behaviors are vital to maintaining profitability in a new study, Reinventing the Relationship: Institutional Brokerage Profitability.

Two key factors have wea