For 12 months ended Q1 2014, the pool of Canadian equity commissions (tracked within the Greenwich Associates universe of 96 trading desks) declined about 12% from an estimated $690 million down to $605 million – well below expectations noted a year ago. 

RBC Capital Markets’ 15.7% share of combined high-touch and low-touch commissions in Canadian equity trading places the bank well ahead of runners up BMO Capital Markets and TD Securities (tied with trading shares of 11.0%–12.1%), and in turn followed by Scotiabank (10.2%) and CIBC (9.1%). These firms are the 2014 Greenwich Share Leaders in Canadian Equity Trading. The firm’s lead over the competition might be even larger in Canadian equity research/advisory services where it captures a 17.5% share in the “broker vote” among institutional portfolio managers.  
 
“While there’s always back and forth among the Big Five Canadian banks that dominate this business, RBC’s position in 2014 is as strong as we have seen any bank achieve in this market,” says Greenwich Associates consultant Jay Bennett. “RBC’s equity capabilities are the broadest and deepest of the Big Five at the moment. In addition to its strong domestic equity research franchise, the bank also has a strong electronic trading platform, which clearly differentiates it from the other top brokers.”

Although high-touch trading still accounts for twice the dollar trading volume as low-touch trading, the percentage of Canadian equity trading executed via electronic trades increased significantly from just 16% up to 24%.  In the increasingly important category of Canadian equity algorithmic trading – which increased from 13% to 19% of trading volume and may rise to 21% three years out – the clear 2014 Greenwich Share Leader is ITG, which is used by approximately three-quarters of institutional investors active in the market. The only major broker in striking distance is RBC Capital Markets, which is used by roughly 60%. 

RBC Capital Markets is also the market leader in all the Greenwich Quality Leader categories, standing as the sole 2014 Greenwich Quality Leader in Canadian Equity Trading. In Canadian Equity Sales, BMO Capital Markets and Scotiabank join RBC and the 2014 Greenwich Leaders in Canadian Equity Research and Analyst Service Quality are BMO and RBC.