Brokers set to restructure equity divisions

Broker-dealers are rethinking operating models amid soaring costs due to rules coming into force this year, said speakers at a transaction services forum last week organised by Citi. And such moves are likely to raise costs and reduce returns for investors. The various reforms – from the G20 requirement for over-the-counter derivatives to be centrally cleared to the financial transaction tax (FTT) due for implementation across 11 European Union countries – are forcing banks to res…