Dear Santa: Independent dealers need a break – FINANCIAL
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Dear Santa: Independent dealers need a break

What independent dealers really want for Christmas is better equity markets, higher commodity prices, an easing of regulations - and greater consideration from issuers.

For independent dealers, the audience of largely privately owned firms that undertake the large banks every day, the ideal Christmas present are the best equity markets, a noticable difference in commodity prices, an easing of regulations C and greater consideration from the issuers.

If none of those conditions prevail in 2016, the sector continues to slip C all of which raises concerns for that employees, investors, issuers and the regulators.

Accordingly, the highly concentrated domestic securities market, with the bank-owned dealers dominating all parts from the business, will become much more concentrated.

The latest in the dealers’ downward spiral occurred now when Vancouver-based Salman Partners announced it was winding down its operations on and on bankrupt by mid-February. The firm has existed for 22 many employs about 40 people. It offers mergers and acquisitions services to issuers while serving a mix of institutional and small retail clients.

Salman’s decision comes a couple of weeks after another independent, Octagon Capital, made a similar decision. Within the summer EdgeCrest Capital opted to go bankrupt and Fraser McKenzie has additionally shut up shop. From 2011 to June 2015, the industry is down by 25 firms, according to the Investment Industry Association of Canada.

While several have departed, others have merged to obtain economies of scale: Euro Pacific Canada and Pope & Company linked up as did Leede Financial Markets Inc. and Jones, Gable & Co.

Terry Salman, a 40-year plus veteran from the investment business, said there will be more closures unless there is a change in the economic environment C the so-called cyclical effect.


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