Brokerage firms on the New York Stock Exchange lost just over US$7 billion in the fourth quarter of 2008, and while that was an improvement from a year ago, full year profits were down substantially.

The NYSE reported that member firms that conduct business with the public recorded a fourth-quarter 2008 after-tax loss of US$7.25 billion, compared with US$10.6 billion in after-tax losses for the same quarter last year. Revenues plunged over the same period, dropping from US$88.2 billion in the fourth quarter of 2007 to US$23.5 billion in the most recent quarter.

For the full year 2008, NYSE firms lost US$27.7 billion, compared with US$7.4 billion in 2007. Revenues were down from US$352 billion in 2007 to US$178 billion last year. Additionally, the NYSE reported that industry assets fell from US$5.5 trillion in 2007 to US$3.8 trillion at the end of 2008.

The data includes firms that trade primarily for their own account, but excludes designated market makers (formerly known as specialists). All firms are registered broker-dealers with the SEC. Revenues are predominantly derived from investment banking, trading, commissions, and interest.

IE