Broker-Dealers Face More Pressure to Scrutinize Clearing Firms
The last 18 months have proved to be trying times for some broker-dealers as clearing firms have encountered service disruptions and consolidations.
According to an Aite Group LLC report, Best Practices for U.S. Brokers, clearing brokerage services have expanded over the past several years to include the management and operation of the introducing broker beyond clearance and settlement of trades, such as broker recruiting, compliance management and business consulting services. The retail fully disclosed clearing industry is now a $2.3 billion annual revenue market, the research firm said.