Amid slumping institutional equity trading, RBC Capital Markets ranked as the top firm, reports Greenwich Associates in new research.
The firm says that its latest survey of institutional equity trading found that RBC Capital Markets captured a market-leading 14.1% share of institutional trading volume last year. BMO Capital Markets and TD Securities tied for second place with trading shares of 11.3 and 11.7%, respectively; followed by Scotia Capital at 9.4% and CIBC World Markets at 8.9%.
Greenwich says that RBC Capital Markets also took the top spot in Canadian equity research and trading by securing 16.7% of the institutional research vote, which is the process by which institutions determine which sell-side providers of research and advisory services will be used and compensated.
BMO Capital Markets ranked second in terms of vote share at 13.1%, followed by CIBC and TD Securities, which are tied with vote shares of 11.6% and 11.0%, respectively, and Scotiabank at 9.4%.
“With the slowdown in trading activity in Canadian equities causing a 10% contraction in the amount of brokerage commissions paid by intuitions, those leading Canadian firms find themselves in the same situation faced by U.S. brokers for the past several years: fighting for market share as a means of maintaining trading revenues,” says Greenwich Associates consultant, Jay Bennett.
In terms of client quality ratings, Greenwich says that its research found that BMO Capital Markets and RBC Capital Markets ranked highest. Among portfolio managers, RBC Capital Markets was rated the overall quality leader in Canadian equity research and analyst service. RBC and BMO were also named quality leaders in Canadian equity sales, it says.