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Are Aussie brokers becoming corporate drones?

Working for a niche brokerage firm in Australia? Your days of independence look numbered as the chimes of consolidation ring round the brokerage industry.

Southern Cross Equities’ recent sell-out to Bell Financial, which follows CMC Markets’ takeover of Andrew West, is another nail in the coffin for standalone brokerages in Australia (Sydney Morning Herald).

Other small-fry firms have been gobbled up by the big banks: ANZ acquired E*Trade Australia last year, and Commonwealth Bank of Australia now owns IWL.

And if you’re still battling away at a small brokerage, then the Australian Securities and Investments Commission is about to deliver the knock-out punch: it plans to raise its minimum clearing house capital requirements from AU$100k to a massive AU$10m by the end of 2009 – a move which is expected to force out under-capitalised brokers.

Will all this (and a slumping stockmarket) be a lethal mix for small brokerage jobs? Consolidate your career below.

Comments (9)

  1. Yes, the smaller firms are probably on their way out, but consoldiation is just a natural part of any industry, it’s stupid to fight it and silly to morn the changing nature of jobs.

  2. Brokerage is not a good place to be at the moment, no matter how big the firm

  3. Ok, do maybe consolidation is natural, but in this case it takes away consumer choice over which bk to use

  4. do we care?!small-time Brokers couldn’t cut it in a investing banking environ anyway

  5. Southern Cross, Bell Financial,,,bla, bla – these are tiny players offering mind-numbing jobs

  6. Personally, I would rather work for ANZ or CAB anyway, more job opportunities, bigger clients etc – brokers should see this in a postive light

  7. …all brokerages in Aus are small by definitin – it’s a small pathetic market

  8. my laptap is my broker – who needs these chumps anyway

  9. I’m a big fan of Sizzle’s comment….you obviously have zero idea..I have worked at a number of the “BIG” firms and I know a lot of the personnel at both BFG and SCE….mind numbing jobs you say…better than being a flow/desk jockey any day of the week mate at one of the US based investment banks…yeah you really use your brains…both BFG and SCE have some very talented individuals that work there..hence why they are paid so well and are trying to build a large wholly owned Aussie broker to take on the international players…and as for working at CBA and ANZ…..how many big insto clients do they have and what do you get paid???

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