Brokerage Industry

Presented by : Ravi Kumar

Introduction
Meaning Of Broker Brokerage Firm And Individual Middleman Communication Power Of Attorney Brokerage Fee Receives money from Both Parties or seller Fee for negotiations, sales, purchase, delivery or advice Based on percentage or a flat rate or both

History
During 11th century, French created the first brokerage system. In 1300s, Houses began to be set up in Flanders And Amsterdam In 1602, Dutch East India Company became the first publicly traded company The Earliest brokerage firms are established in London coffee houses and they formally founded the London Stock Exchange in 1801 The system was copied by the brokerage firms across the world Merrill Lynch and Morgan Stanley were created

Global Brokerage Industry

In 1900s, Stock brokerage firms began to move in a direction of market makers They adopted the policy of quoting both buying and selling Enforced a System called Chinese walls In the last half of 20th century, Larger firms began to merge and take over smaller firms This conglomeration caused a chain reaction Bear Sterns and Lehman Brothers filed for bankruptcy and resulted in a large economic collapse in late 2008 Brokerage firms moved to an online format

 Scottrade has been a leader in online brokerage industry This industry has modified the design off their web site in order to obtain that user friendly Elite is the improved application built by global industry It also cited as the highest in Investor Satisfaction by J.D. Power and Associates in six Consecutive times

Global Brokerage Companies

Goldman Sachs Investment banking, Securities Brokerage, Security Brokers, Dealers, and, Financial Services, Private equity Statistics: Public Company Founded: 1885 by Marcus Goldman Employees: 22,627 Total Assets: $312.21 billion (2001) Stock Exchanges: New York

JP Morgan Securities
Securities Brokerage, Security Brokers, Dealers, and Investment Advice Founder is JP Morgan It is providing its services for more than 200 years In 2008, It plays an important role in managing the credit crisis through the acquisition of Bear Stearns Headquarter : New York, US

Morgan Stanley
Investment banking, Securities Brokerage, Security Brokers, Dealers, Investment Advice Founded : 1935 Founder : Henry Morgan and Harold Stanley Headquarter : New York, US Public Company Stock Exchanges : NYSE

Sharebuilder
Securities Brokerage, Security Brokers, Dealers, and Flotation Companies, Financial Service Founded : 1996 Parent Company : ING Group On 19 November 2007, It was purchased by ING Direct In June 2009, It moved its headquarter in Seattle from Bellevue

USB Financial Services

Securities Brokerage, Security Brokers, Dealers, and Flotation Companies Public Company Headquarter : Switzerland The merger between Union Bank Of Switzerland and Swiss Bank Corporation to form UBS AG became reality on 1 July 1998 SBC s major nationwide expansion followed only in the 1960s. In 1945 SBC took over the troubled Basler Handelsbank In the last decade of the twentieth century, SBC strengthened its international orientation again by taking over foreign finance firms (O Connor & Associates, Chicago; Brinson Partners, Inc., Chicago; S.G. Warburg plc, London).

Worlds Largest Stock Exchanges

NYSE Founded in 1792 It called as "curb market" because its brokers traded outdoors in the street NYSE Euronext was launched on April 4, 2007 by the combination of NYSE Group and Euronext NYSE Euronext is home to the world's leading companies providing access to the global liquidity they need to collaborate, compete and grow

NASDAQ
National Association of Securities Dealers Automated Quotation founded in 1971 It was the worlds first electronic stock market The purpose of its founding was to popularize the OTC (over-the-counter) securities With its first day of trading on February 8, 1971, the NASDAQ system displayed quotes for over 2,500 over-the-counter stocks

London Stock Exchange

The London Stock Exchange is one of the world s oldest stock exchanges It started its life in the coffee houses of 17th century In 1997, SETS (Stock Exchange Electronic Trading Service) is launched to bring greater speed and efficiency to the market In 2007, The London Stock Exchange merges with Borsa Italiana

Tokyo Stock Exchange

In 15May 1878, Tokyo Stock Exchange Co., Ltd. established. In 16April 1947, Japan Securities Exchange" dissolved In 1April 1949, Tokyo Stock Exchange in the present form founded In Jul 18, 1997 Trading in equity options started. In Mar. 1. 2000, Hiroshima and Niigata stock exchanges merge into TSE

Broking Industry In India

Brokerage firms are the business entities that deal with stock trading Total trading volume of the Indian brokerage companies In 2004 = US$ 1239.1 billion In 2005 = US$ 1492.1 billion In 2015 = US$ 6535.7 billion (expected)

Top Brokerage Firms In India

Kotak Securities Limited Indiabulls IL&FS Investmart Limited Motilal Oswal Securities Reliance Money India Infoline Angel Broking Limited Anand Rathi Securities Limited Geojit

Kotak Securities Limited

Name Terminals Sub Brokers No. of Employees No. of Branches Founded Subsidiary Kotak Securities Limited 4320 910 4008 350 1985 Kotak Mahindra Bank

Indiabulls
Name Terminals Sub Brokers No. of Employees No. of Branches Indiabulls 2876 NA 5873 522

In middle of 1999, when e-commerce was just about starting Sameer Gehlaut and Rajiv Rattan bought a defunct securities company By December 1999, the company build one of the first online platforms in India for offering internet brokerage services In January 2000, the 3 founders incorporated Indiabulls Financial Services