Announcing the 2014 Greenwich Share and Quality Leaders in Asian Equities, Equity Options and Volatility Products
Bank of America Merrill Lynch and CLSA Asia-Pacific Markets are the top brokers in Asian equity trading for 2014, according to new report, Leading Asian Equity Brokers Stabilizing Market Share, from Greenwich Associates.
Bank of America Merrill Lynch and CLSA Asia-Pacific Markets are tied for the top spot in Asian equity trading with market shares of 9.6-9.8%. UBS is next with a market share of 9.0%, followed by Credit Suisse, Morgan Stanley and Goldman Sachs, which are tied for the fourth spot with Asia Pacific-based institutions. These firms are the 2014 Greenwich Share Leaders in Asian Equity Trading. The 2014 Greenwich Quality Leader in Asian Equity Trading is Bank of America Merrill Lynch.
Research and Advisory Services Drive Trading Revenues
Institutions allocate about two-thirds of the commissions they pay on trades of Asian equities as compensation to brokers for research and advisory services. Most of the other third of commission payments represent direct compensation for sales trading and agency execution. “Given the diversity of the Asian equity markets and the demand for liquidity by institutions, leading brokers are typically characterized by their ability to combine distinctive research and advisory coverage with robust execution capabilities across the high-touch and low-touch spectrum,” says Greenwich Associates consultant Jay Bennett.
In Asian equity research and advisory services, CLSA Asia-Pacific Markets, Bank of America Merrill Lynch and Credit Suisse tie for the top spot with 8.8-9.3% shares of the “vote” by which institutions allocate commissions to providers. Morgan Stanley is next at 8.5%, followed by Deutsche Bank at 7.5%. These firms are the 2014 Greenwich Share Leaders in Asian Equity Research/Advisory Services. The 2014 Greenwich Quality Leaders in Asian Equity Research and Analyst Service Quality are Bank of America Merrill Lynch, CLSA, Credit Suisse and Morgan Stanley.
The 2014 Greenwich Quality Leaders in Asian Equity Sales and Corporate Access are CLSA Asia-Pacific Markets and Credit Suisse.
Options &Volatility Products
Institutions choosing a broker for trades of Asian options and volatility products focus on three main factors: options pricing, quality and consistency of service and quality of brokers’ ideas for hedging or investments. These factors drive trading volumes and the leading brokers in the market demonstrate consistent strength across all three areas.
The 2014 Greenwich Share Leaders in Asian Options & Volatility Product Coverage are Morgan Stanley, which is used as a broker by 71% of active Asian options users, followed by Goldman Sachs, Bank of America Merrill Lynch, and Deutsche Bank, which are tied for the second spot. The 2014 Greenwich Quality Leader in Asian Options & Volatility Products Coverage is Morgan Stanley.